Shaq Turned Down Starbucks. Magic Johnson Took the Same Deal and Made $100 Million.

In the late 1990s, Starbucks CEO Howard Schultz was looking for partners to expand into underserved urban communities. His pitch reached Shaquille O'Neal through Shaq's agent.

Shaq took the meeting. And turned it down flat.

"Black People Don't Drink Coffee"

"I told Howard Schultz that Black people don't drink coffee," Shaq later recounted in a 2015 interview with Graham Bensinger, "because I never seen anyone in my family drink coffee. I said, 'I don't think it's gonna work, sir.'"

Schultz had his answer. He moved on to the next athlete on his list.

Magic's Move

Magic Johnson saw what Shaq didn't. In 1998, Johnson entered a joint venture with Starbucks called Urban Coffee Opportunities. The concept was simple: bring premium coffee shops to predominantly Black and Latino neighborhoods that the mainstream chain hadn't prioritized.

The locations thrived. Magic eventually operated 105 Starbucks stores. In the early 2010s, he sold his stake back to the company for an estimated $100 million.

The Regret

Shaq has been remarkably candid about the mistake. In multiple interviews, including a widely cited CNBC appearance in 2019, he calls it his "biggest investment regret." The math is brutal: there are more than 35,000 Starbucks locations worldwide. Every single one is a reminder of the deal he turned down because nobody in his family drank coffee.

To his credit, Shaq learned. He went on to invest in Papa John's, Krispy Kreme, and dozens of other brands, eventually building a business portfolio worth hundreds of millions. But the Starbucks story remains the one that got away.