Photo Courtesy of Magic Johnson / Instagram
Former pro-baller Earvin “Magic” Johnson Jr. stepped into the billionaire leagues — the fourth athlete to achieve this status — with a whopping $1.2 billion net worth, Forbes announced on Oct. 29. The 64-year-old legend exceeded his 1990 career goal.
With his four percent stake in NFL’s Washington Commanders, two-point-three percent stake in the Los Angeles Dodgers, his ownership of the LA Sparks, and his stake in MLS’ LAFC, the ex-Los Angeles Lakers point guard brought his cake up. His Magic Johnson Enterprise’s involvement in movie theaters, healthcare and fast food undoubtedly contributed to his earnings. Certainly, Magic’s 60% stake in EquiTrust, a Des Moines, Iowa-based life insurance company, also played a major role in his climb to billionaire status.
Before Magic, Forbes named Tiger Woods, Michael Jordan and LeBron James the first three athletes to become billionaires. Unlike the aforementioned, most of the 64-year-old’s earnings didn’t stem from his baller days (James accumulated almost half a billion bucks strictly from his NBA contracts).
Magic’s 15-year NBA career earnings came to about $40 million from 1979 to 1991 and 1996 (a vast difference from James’ earnings). He gained an annual $2 million and $4 million in endorsements.
In a 1990 interview with Sports Illustrated, Magic acknowledged that he wasn’t making an exorbitant amount of money in the NBA, especially with the Lakers, leading him to engage in the business side of sports and explore other business ventures. He also discussed the kind of businesses that interested him and shared his desired salary range.
“I have goals,” Magic told SI. “I want to be in that $100-$200 million, which is what you basically got to have.”
He continued, “For a franchise. And it doesn’t have to be the Lakers. It doesn’t even have to be an HBA team. I’m a sports fan. If baseball became available before basketball, I’d be right there. I want to do big business.”
Since then, Magic has invested in numerous businesses. In 1990, he and Black Enterprie’s Earl G. Graves Sr. bought a Pepsi franchise for $60 million.
Around 1998, the NBA legend got involved with the Starbucks franchise, becoming the coffee giant’s only franchisee, and landed 125 shops. He aimed to make the coffee shops available in Black neighborhoods before selling all the locations.