The 41-year-old was celebrated during the Lakers' clash against the Dallas Mavericks by the club retiring the former player's famous number 34 jersey.
During his speech, O'Neal praised Nicholson's commitment to the Lakers by using a classic line from the actor's film A Few Good Men.
"Jack's been sitting in that same seat for years, telling the referees, 'You can't handle the truth!'" said O'Neal.
Nicholson has had court-side seats at the Lakers for around 30 years.