Magic Johnson’s net worth demonstrates that he is a wizard on the basketball court as well as in the boardroom. While most people are familiar with Johnson because of his great NBA career, he dreamed of scoring business deals even before he scored points.
He received his first taste of the business world while cleaning a seven-story office building as a teenager in Lansing, Mich.
According to MSNBC, he remarked on Advancing the Dream: Live from the Apollo in 2013: “I would go clean the first six floors, but on the seventh story, that’s where the CEO’s office was, so I would barge in and pretend like I was the CEO, and I would put my feet up on the desk.” “I was impoverished growing up, but I didn’t have terrible dreams.”
His dream became a reality years later. After an illustrious basketball career in which he led the Los Angeles Lakers to five championships, the Michigan native’s fortunes continued to rise.
But, even though he now has a top-floor CEO desk, he hasn’t forgotten where he came from.
“We still have to understand money, generate wealth, and pass it on to our children,” he said at the Apollo. “And then we have to go into the community that we live in and own our business and put our people to work.” “I’ve been about that my entire career.”
Johnson’s net worth is in the nine figures, so it’s safe to assume he’s still winning in real life.
Please continue reading to learn about Magic Johnson‘s net worth, how he acquired it, and how he gives back with his riches.
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Who Is Magic Johnson And What Does He Do?
Magic Johnson’s real name is Earvin Johnson, and he earned his moniker from a sportswriter who saw him score 36 points, 16 rebounds, and 16 assists in one game in high school.
After graduating from Michigan State, he went pro and was the first overall pick in the 1979 NBA draught by the Los Angeles Lakers. Over the course of his 13-year NBA career, he led the team to five titles as a superb 6’9″ point guard, the tallest in league history at the time.
The three-time MVP started a renowned rivalry with Boston Celtics legend Larry Bird, who is now a Hall of Famer. According to ESPN Classic, Johnson once claimed, “When I played, Larry Bird was the only one I feared.”
They struck up an odd bond and are still friends today. In 2021, Johnson told The Guardian, “We see each other at events.” “Larry is a calm man who wishes to live a tranquil life. And I, on the other hand, am the polar opposite.
But we have this great bond that makes it seem like we’ve been talking every day when we see each other.
Johnson announced his retirement from basketball and his HIV diagnoses on November 7, 1991.
“I will have to resign from the Lakers due to the HIV infection that I have contracted.” “Today,” he said at the time at a press conference, “I plan to keep living for a long time.”
In 1992, he came out of retirement to compete in the Olympics with the American basketball “Dream Team.”
The squad won, and Johnson went from wearing the purple and gold of the Lakers to winning a gold medal. In 2021, he told CBS News that returning to the sport was the correct move.
“It helped people who were living with any ailment, not just HIV and AIDS, that they could live on, that they could… live a useful life.”
Where is Magic Johnson Now And What He Is Doing These Days?
Magic Johnson is now a businessman who is focused on providing high-quality stores and services to disadvantaged metropolitan neighbourhoods. He’s made millions, but he’s also a philanthropist who’s committed to passing on his money to future generations.
In 2021, he told The Guardian, “We, as Black people, had never truly comprehended generational prosperity and passed that wealth on.” “We’re finally coming to terms with it.” “It empowers our community…now these youngsters dream of becoming not only a basketball player or a football player but also a businessman,” he concluded.
That is what matters that we have authority and a seat at the table.”
Is Magic Johnson Enterprises is a Company Founded by Magic Johnson?
Johnson used his NBA earnings to start Magic Johnson Enterprises in 1987, an investment firm that “provides high-quality products and services that focus primarily on ethnically diverse and underserved urban communities through strategic alliances, investments, consulting, and endorsements,” according to Crunchbase.
According to Fox Business, Magic Johnson Enterprises’ website declared in 2020 that the company has $1 billion in assets spread across numerous industries.
What did Magic Johnson Earn in the NBA?
Johnson signed a one-of-a-kind contract with the Los Angeles Lakers in 1981: a 25-year, $25 million extensions that guaranteed him a spot on the club.
According to CNN, it was the most extended and highest-paying contract in sports at the time.
According to Sports Illustrated, he went on to sign more contracts to make up for the years when he wasn’t the highest-paid player in the league.
What Did Magic Johnson Earn in the Converse?
Johnson had the opportunity to be sponsored by Nike in 1979, but he did not take it. Nike, which was still a young firm at the time, offered him stock instead of cash.
Rather than risking his money on the stock market, Johnson chose to partner with Converse, a business decision that will almost certainly cost him millions of dollars given the current value of Nike stock.
According to Inc. Magazine, he said, “I didn’t know anything about the stock.” “I grew up in the city. We do not know about stocks. Oh, my, did I make a blunder? I’m still kicking myself for making such a mistake.
I feel irritated every time I walk into a Nike Store. I could have made money right now if everyone was buying Nikes.”
Converse reportedly paid Johnson $2 million every year, according to the Los Angeles Times.
“Converse as a company is trapped in the ’60s and ’70s,” Johnson said at a US Olympic team practise at the time, according to The Baltimore Sun. Johnson left the company in 1992 after 13 years as a spokesman. They believe the Chuck Taylor [sneaker] era is still alive and well.” “I’ve never really been happy with them,” he continued.
Nike and Reebok spend a lot of money on advertising, and I’ve been trying to get out for a long time.”
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What was Magic Johnson’s Profit from Starbucks?
According to CNBC, Johnson struck a contract with Starbucks in 1998 to introduce the coffee company to the inner city.
He described as “what really marked me as a serious businessman” on the Kneading Dough podcast. Johnson, a former member of the “Showtime” Lakers, persuaded former Starbucks CEO Howard Schultz to accept his offer with a different sort of showtime.
He took him to attend the opening night of Waiting to Exhale, starring Whitney Houston, at one of the movie houses he owned. “About 20 minutes in, Howard grabs me and says, ‘Earvin, I’ve never had a movie-going experience quite like this,'” the NBA legend remembered.
Johnson said the 50/50 venture, branded Urban Coffee Opportunities, “changed everything” and featured 125 cafes in urban areas, though it’s unclear how much money he made from it.
He claimed on the broadcast, “It showed everyone that I could generate ROI in urban America.” “There was nobody actually establishing businesses and going after their disposable income when you think about African Americans now—over $1 trillion spending power—Latinos, over $1 trillion spending power, and heading much higher.”
So my company was able to provide jobs and access to these shops who had previously refused to come into the inner city, but they now have a home run because we partnered, and they came in.”
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Magic Johnson owns What other Businesses?
Magic Johnson Enterprises has operated various businesses throughout the years, including gyms, movie theatres, and more, in addition to Burger King and Starbucks.
Johnson also owned controlling holdings in Aspire TV, a cable network he started, and EquiTrust, a life insurance company, according to Fox Business.
Is Magic Johnson the owner of the Los Angeles Lakers?
After Randy Pfund was sacked, Johnson, a 13-year Lakers veteran, stepped in to coach the team for the last months of the 1993-94 season.
Off the court, he had an impact on the team in other ways as well, as he reportedly told the Associated Press at the time, “I want to go home.” Coaching has never been a dream of mine. I want to be a business owner. You must pursue your ambitions.”
His ambitions came true in June 1994, when he purchased a 4.5 percent stake in the squad for an estimated $10 million.
In 2010, he sold his NBA franchise to Dr. Patrick Soon-Shiong, a long-time Lakers season-ticket holder, for an unknown fee.
According to Bleacher Report, the NBA legend said of the sale, “This was a bittersweet business choice taken on behalf of my family and myself, and I want to assure all the fantastic and dedicated Lakers fans that my decision will in no way alter my passion and support for the Los Angeles Lakers.” “For the rest of my life, I’ll be a Laker.”
Magic Johnson Owns What other Teams?
Magic Johnson has continued to buy sports franchises, combining his sporting knowledge with his business skills.
He was a member of an investment group that bought the Los Angeles Sparks, a WNBA team, in 2014. According to Forbes, Johnson attended the inaugural Sparks game in 1997, long before he invested in the team.
In 2012, he bought the Los Angeles Dodgers with a group of investors that included Stan Kasten, the former president of the Atlanta Braves and Washington Nationals, Peter Gruber, a co-owner of the Golden State Warriors, and global investment firm Guggenheim Partners.
They reportedly paid roughly $2.15 billion for the team, setting a record for the most money spent on a North American sports franchise at the time.
According to HBO Real Sports, the basketball player contributed $50 million to the historic acquisition.
In 2014, Johnson joined investors such as Mia Hamm to become a part-owner of Major League Soccer’s Los Angeles Football Club, further expanding his presence in the sports world.
Magic Johnson Has Made What Kind of Contributions and Donations?
Johnson launched the Magic Johnson Foundation in 1991, the same month he received his HIV diagnosis, to “produce programmes and assist community-based organisations that address the educational, health, and social needs of ethnically diverse, metropolitan neighbourhoods.”
According to CNN, the organisation had raised over $20 million for charity and awarded approximately $4 million in scholarships as of 2014.
During the COVID-19 pandemic, Johnson also stepped in to help women- and minority-owned businesses that were being harmed by quarantine rules.
Through his EquiTrust Life Insurance Company, he collaborated with MBE Capital Partners to give $100 million in loans.
In 2020, he told CNBC Squawk Box, “This will help them to keep their employees and keep their doors open.”
Magic Johnson Net Worth
Magic Johnson’s net worth is estimated to be $600 million as of 2022, according to Celebrity Net Worth.