Tony Hawk, the skateboarding legend renowned for his groundbreaking tricks, recently reflected on a pivotal financial decision that shaped his career. Speaking at the Techarena technology conference in Stockholm on Thursday, Hawk revealed that he declined a $500,000 buyout offer for the use of his name and likeness in Activision's Pro Skater video game series. Instead, he opted for a royalty arrangement, a choice he describes as "the best financial decision" of his life.
Hawk, who has been skateboarding since the 1970s, is celebrated for inventing numerous tricks such as the Madonna, the rodeo flip, and the internationally televised 900. By the age of 16, he had already established himself as the best skateboarder in the world. Despite the allure of a substantial one-time payment from Activision, the offer "didn't seem like a real number" to him. At the time, Hawk had just bought a new house and was confident in his financial stability outside of the video game project.
"I had a family, I had just bought a new house, and I felt like I could afford the mortgage. And I thought, I'm doing pretty well in my life outside this video game project," – Tony Hawk
Instead of accepting the $500,000 offer, Hawk negotiated a royalty deal that allowed him to receive a share of every Pro Skater game sold. This decision proved fortuitous as the franchise went on to generate over $1.4 billion in sales. The licensing agreement between Hawk and Activision lasted for 16 years until 2015, during which time Hawk's career soared to new heights thanks to the game's success.
"That was absolutely the best financial decision of my life," – Tony Hawk
The Pro Skater series not only solidified Hawk's status as a household name but also revolutionized skateboarding video games. By choosing royalties over a one-time buyout, Hawk ensured a steady stream of income and maintained a lasting influence in the gaming industry.