"Hindsight is 20/20″ is especially true when it comes to business decisions. For every story about a business venture that became an unexpected massive success, there is a story about a person who turned down that business venture, or chose to leave it before it hit the big time. It's genuinely difficult to know what will and will not make money. Wrestling star and occasional actor, Hulk Hogan, definitely could have used a crystal ball to show him the future when it came to one specific business opportunity that was presented 15 years ago. The Hulkster had the opportunity to jump into the extremely lucrative world of celebrity product endorsements. When Hulk's agent gave him a choice between a grill and another product – Hulk Hogan chose the other product. The grill went to another sports figure – George Foreman. Fast-forward to today, and the "George Foreman Grill" is everywhere. Hulk Hogan's product? Yeah, not so much. His misguided decision would lead to him missing out on $200 million in potential profits. Here's the story of how Hulk Hogan made one of the worst business decisions ever.
Hulk Hogan's $200 Million Mistake
Hulk Hogan, also known as Terry Eugene Bollea, was born on August 11, 1953 in Augusta, Georgia, and grew up in Tampa, Florida. An athletic child and accomplished musician, Hulk Hogan discovered a love of wrestling when he was 15 years old. Inspired by "Superstar" Billy Graham, he worked to build up his physique, while pursuing a career as a rock musician. He subsequently dropped out of college to focus on his music career with his band, Ruckus. While performing with the band, he was approached by two audience members, a pair of wrestlers who competed on the Championship Wrestling from Florida circuit. The pair suggested he train as a wrestler. Within a year, he'd left music behind and was training full-time. For the next several years, he would go back and forth between wrestling, running a Florida club, and running his own gym. By the late 70s, he'd begun to make a major name for himself, achieving increased fame wrestling for New Japan Pro Wrestling and the American Wrestling Association, as well as appearing in movies such as "Rocky III". In 1983, he became the face of the World Wrestling Federation, and for the next 10 years, "Hulkamania" swept the wrestling world.
After the mid-90s, Hulk Hogan began to diversify. While continuing to wrestle off and on for New Japan, WCW, New World Order, WWF/E, and Total Nonstop Action, he also launched multiple business ventures, a moderately successful acting career, and returned to making music. Unfortunately, not everything he worked on was successful. For example, his restaurant, Pastamania, failed in less than a year. It was around this time that his agent reportedly approached him to endorse a kitchen product. Depending on who you talk with, Hogan was offered the opportunity to endorse a grill, a meatball maker, or a blender. By some accounts, he chose to endorse the blender, which was later named the "Hulk Hogan Thunder Mixer". By other accounts, he chose the meatball maker, and the failed product was called the "Hulkamania Meatball Maker". More important than which product he chose to endorse, is the product he chose not to endorse – the grill. When Hulk decided he did not want to endorse a grill, he casually suggested that his agent give the grill to one of his other clients.
George Foreman also happened to have the same agent as the Hulkster. The celebrated boxer had just reclaimed his world heavyweight title at the age of 45, and was in the midst of an incredible comeback. He was well-known for eating two hamburgers prior to all of his matches. The boxing champion attributed his comeback to healthy eating habits, one of which included pouring off all of the fat created by any meat products he cooked.
For the makers of this newly proposed grill, Spectrum Brands (formerly known as Salton, Inc.), George Foremen turned out to be the perfect spokesperson. He agreed to let the company use his name and face to sell their fat-reducing grill. George also had some ideas about the design, which the company subsequently implemented. The grill became known as the George Foreman Lean Mean Fat-Reducing Grilling Machine, but you probably know it more simply as the George Foreman Grill.
In the mid-90s, the marketing team rolled out a friendly, folksy, gently comic ad campaign starring the boxer. Almost instantly, the grill blew up. Everyone wanted one. Initially, George Foreman was paid 40% of the profits from the sale of each grill. The product was so popular that he was regularly making $5 million per month in royalties! By 1999, the makers of the grill realized that it might simply be easier to pay off their spokesperson for a lump sum. That year, they paid him a staggering $138 million in order to continue using his name in perpetuity.
Over the years, the George Foreman Grill has sold over 100 million units worldwide. Between the profits and the buy-out, George Foreman personally pocketed more than $200 million from the grill. His endorsement deal made his boxing earnings look like chump change.
Hulk Hogan, who was now kicking himself thoroughly for not jumping on that grill idea when he had the chance, began appearing on reality television in order to make ends meet. Seemingly cursed, each of the products he invested in and endorsed disappeared without much fanfare. He subsequently invested in and endorsed a line of microwaveable burgers and sandwiches sold at Wal-Mart, called "Hulkster Burgers". He unsuccessfully invested in and endorsed the "Hulk Hogan Ultimate Grill". Then tried his hand at energy drink production with "Hogan Energy". In 2008, he had a net worth of $30 million, but personal troubles, mismanagement, and the failure of yet another product, led to him being steps from bankruptcy. He has since recovered slightly and even owns a restaurant and a web hosting service called "Hostamania". George Foreman meanwhile is retired, kicking back, and living the good life with a quarter of a billion net worth in the bank.
It's tough to know which products will end up making an impact, but it's obvious that the better choice is usually the unique product. Looking at Hulk Hogan's investment/endorsement choices, blenders and meatball makers, while useful, weren't exactly new inventions. However, an indoor grill that reduced fat and cooked tasty burgers in a few minutes… that was revolutionary! It's amazing to realize in hindsight that the best thing that ever happened to George Foreman, is directly due to Hulk Hogan making one terrible business decision 15 years ago!
Read more: 15 Years Ago Hulk Hogan Made One Stupid Decision That Wound Up Costing Him $200 Million