Building a post-NBA business empire: How Grant Hill leveraged hard assets, Black art, and CEO thinking.

• CNBC interviewed Basketball Hall of Famer Grant Hill about his partnership with Philips, real estate investments, and sports ownership.
• Despite his estimated net worth of $250 million, Hill remains "paranoid" about losing his money.
• "Real estate is his preferred investment option, as he believes in tangible assets," Hill stated on CNBC.

Grant Hill, a renowned NBA player and Duke Blue Devils legend, accumulated more than $100 million in his career. He has invested in numerous significant real estate projects, including a $5 billion development in Atlanta. Additionally, he holds an ownership stake in an NBA team and has recently formed a partnership with multinational conglomerate Philips.

He is now estimated to have a net worth of $250 million.

The 1994 Detroit Pistons first-round pick is still anxious about money, a mindset that has persisted since his days on the NBA court.

Hill revealed that he would always consider the end of the game when planning his budget during his playing days, which he believes helped him prepare for life after retirement.

Philips’ razor products will be the focus of Hill's new promotion arrangement, which he discussed with CNBC on Tuesday. In addition to his role as a basketball analyst for Turner Sports' NBA and NCAA games, Hill is 49 years old.

The interview with Hill lasted beyond 45 minutes, despite being scheduled for only 15 minutes, as he talked about his investments, NBA involvement, and his ongoing business curiosity.

Off the court, Hill managed his finances and constructed a successful business portfolio.

Thinking like a CEO

One of Hill's most significant decisions after being drafted was not to hire a sports agent to negotiate deals. Hill stated that he does not believe in paying an agent a percentage of his contracts to represent him. Basketball agents can charge up to 4% to players to settle contracts and earn more if they secure brand deals for their clients.

Hill, who played for four teams throughout 19 NBA seasons, remembered his first contract was an eight-year $45 million deal in 1994. This was negotiated by attorney Lon Babby, who had experience as the Baltimore Orioles general counsel and later became the Phoenix Suns president of basketball operations.

Hill stated that athletes are essentially CEOs of their own companies, and CEOs typically work with lawyers rather than agents, who are paid a percentage. They have attorneys who help them negotiate and vet deals, and protect their interests in contracts. Consequently, Hill chose to represent himself with lawyers.

In 2000, Babby, who charged Hill an hourly rate, helped negotiate a $93 million deal with the Orlando Magic and established a marketing division that secured deals from brands such as McDonald's and Coca-Cola's Sprite. In 2018, sports apparel company FILA signed Hill to a lifetime deal.

Hill learned by sitting with the executive leadership team, going over marketing campaigns, visiting ad agencies to develop a strategy, and studying the business section in newspapers to learn about money. He kept things simple when it came to spending.

I didn't alter my habits," Hill stated. "I didn't indulge in a shopping spree. I didn't purchase a vehicle. I had a connection with General Motors, and they provided me with a few cars.

Hill, who played until age 40, was elected to the Pro Basketball Hall of Fame in 2018 and sits on the organization’s board. He is also a member of the NBA Retired Players Association board of directors. In January 2021, Hill was named the new managing director of the U.S. men’s national basketball team.

Inside Hill’s portfolio

After observing athletes face financial difficulties following their careers, Hill became paranoid about losing money. Hill's father, a former Dallas Cowboys running back, witnessed some NFL players struggle with finances personally.

Hill stated that he is constantly anxious about similar financial outcomes due to his hardwired paranoia.

That thinking is reflected in his involvement in real estate investment.

“I believe in hard assets, real assets,” Hill said.

Hill commended his parents for sparking an interest in the real estate sector. He remembered beginning his journey in 2000 while working with the Magic. Since then, Hill has invested in various multifamily units and office buildings in central Florida, which he considers a region with immense growth potential.

The former NBA All-Star invested and developed over $200 million in projects throughout Florida and North Carolina through his marketing and management company, Hill Ventures.

Hill has joined CIM Group to invest in Centennial Yards, a $5 billion mixed-use development in Atlanta. He stated that the downtown project would take seven to 10 years to complete. Hill compared the project to L.A. Live, an entertainment and residential development outside Crypto.com Arena in Los Angeles.

Real estate investing has proven to be lucrative for many athletes, including Hill, post their career.

Isiah Thomas, a Basketball Hall of Famer and Pistons legend, has a real estate firm under his ISIAH International company. Meanwhile, LeSean McCoy, a former NFL running back, is expanding his portfolio through Vice Capital.

Cryptocurrency investment is gaining popularity among top-tier athletes, but Hill remains skeptical about its sustainability. For Hill, the focus remains on hard assets.

Real estate has led to significant wealth creation, and it is a component of asset allocation, he stated. While it may be a safe bet, he believes it is also a profitable one compared to certain new digital currencies.

Investment in sports teams and Black art

Hill owns sports properties in his portfolio, including a $1 billion investment in the NBA's Africa business and a minority stake in the NBA's Atlanta Hawks.

In 2015, Hill acquired an equity stake and assumed the role of vice chair when he joined businessman Tony Ressler to purchase the team for over $800 million. Currently, the Hawks are valued at $1.6 billion, according to Forbes.

"Tony Ressler treats me like a partner, and I value and appreciate that," Hill said, without revealing his total stake in the NBA franchise.

In 2014, the $1.2 billion bid by Hill and his co-investors for the Los Angeles Clippers was not enough to compete with the $2 billion offer made by former CEO Steve Ballmer for the team.

Another asset in Hill’s portfolio: Black art.

In the 1990s, Hill started amassing Black art pieces. According to CNBC, Hill owns works by Romare Bearden, Elizabeth Catlett, painter Norman Lewis, and Hank Willis Thomas. As the mainstream art community has become more accepting of Black art, the value of these pieces has risen.

If you buy good art, have a good eye, and know what you're doing, you can potentially make a lot of money, according to Hill.

Hill is still leveraging his NBA brand

Hill's estimated net worth from endorsements is around $120 million, and he is gaining experience in the consumer packaged goods sector as a board member of Campbell Soup in New Jersey.

Philips is also using Hill to attract new shavers with its Norelco OneBlade line. The details of Hill's endorsement with Philips were not disclosed. Hill is publicly traded on the New York Stock Exchange and has a market value of $28 billion.

Hill stated that he seeks out brands with a track record of achievement when considering endorsement deals, as these companies embody the values and standards he represents.

Hill stated that he believes Philips has a product that caters to young college basketball fans, as he was once a part of that demographic.

Hill was a player for legendary Duke coach Mike Krzyzewski, who is retiring from the program after 42 seasons and five NCAA Division I championships. Two of those title teams, 1991 and 1992, included Hill.

Last weekend, the retired superstar attended Krzyzewski's final home game at the school and described the moment as "bittersweet."

It was special to see players from different eras return and celebrate his legacy, according to Hill.

He believes that the Blue Devils will win the NCAA championship this year. Duke last won the NCAA championship in 2015.

Hill stated that we were overdue and hoped to give Coach K another championship to send him off with.