Following the decline of sales 5 quarters in a row after their founder and CEO admitted to using the N-word in a conference call, Papa John's is now hoping that Shaquille O'Neill will help save the company and restore its reputation.
It's been reported that Papa John’s will pay O’Neal $8.25 million in a combination of cash and stock over the three-year endorsement deal, while the NBA legend will also invest $840,000 for a 30 percent stake in the company-owned Atlanta restaurants.
"We are thrilled to partner with Shaquille and welcome him to the Papa John's board," the pizza chain recently said in the press release. "Shaquille has an excellent entrepreneurial background, including as a restaurant franchise owner, and is a natural creative marketer."
Shaq himself recently announced the news on Instagram, writing "Time for a pizza party! I’m excited to join @PapaJohns as a member of the Board of Directors and as an investor in nine stores in #Atlanta." Additionally, the 4x NBA champion and the 15x NBA All-Star will also become the brand ambassador for the pizza chain.
It should be noted that O'Neill is no stranger to the restaurant business, having owned 27 Five Guys Burgers and Fries locations in addition to a current Krispy Kreme Doughnuts franchise in the Atlanta area. In addition to all that, he also owns a fried-chicken restaurant in Las Vegas and a fine-dining restaurant in Los Angeles.
This news comes after a $200 million dollar investment from hedge fund Starboard Value into the company, as Papa Johns looks to recover from the fall out of the scandal involving its founder and former CEO, John Schnatter. With that said, while Schnatter recently dropped his lawsuit and resigned as an independent director, he still owns about 30% of the chain.
Meanwhile, just this morning Shaq posted another photo of himself passing out Papa John's pizzas at the New York Stock Exchange.
Source: BusinessInsider
