Magic Johnson rose to superstardom through basketball, winning a national championship with Michigan State in 1979 and winning five NBA championships with the show-era Lakers.
But he became a billionaire mainly through business deals.
According to an article published by Forbes on Monday, Johnson’s net worth is estimated at $1.2 billion, making him the fourth athlete recognized by the magazine to achieve billionaire status. He follows in the footsteps of retired NBA legend Michael Jordan (who became a billionaire in 2014), golfer Tiger Woods (2022) and current Lakers star LeBron James (2022).
“When you have a high basketball IQ, you can translate that same basketball IQ or high IQ into business and reinvent yourself and become a businessman,” Johnson told The Times’ Broderick Turner in July . “The discipline you need to become a great athlete will also help you become a great businessman. The same focus and drive, and last but not least the competitive spirit. So, just take all those things that make you a great businessman. What takes a great athlete, you can transfer it to the business world. That’s what I did.”
What separates Johnson, 64, from the other three billionaire athletes is that he amassed relatively little wealth as a player. According to Forbes, although Johnson was the spokesperson for the Lakers and one of the most famous players in the NBA in the 1980s and 1990s, his career earnings were approximately $40 million, with annual endorsement income of only $2- $4 million.
Jordan won six NBA championships with the Chicago Bulls in the 1990s, earning $94 million in salary and signing bonuses and an estimated $2.4 billion in endorsements during his 15-season career from 1984 to 2003. . Woods and James remain active athletes.
According to Forbes, Johnson entered the ten-figure club largely because of his joint ventures and partnerships, including early deals with Lowes and Starbucks, as the basketball star helped those companies expand into predominantly black communities. , these transactions became quite profitable.
“We gained tremendous leverage in these partnerships,” Ken Lombard, president of Johnson Development from 1992 to 2004, told Forbes.
Johnson also became a minority owner of the Lakers in 1994. He later sold his stake to Los Angeles Times owner Dr. Patrick Soon Shiong, but Johnson has since become a high-profile minority owner of several teams, including the Dodgers, Sparks, LAFC, and most recently the Washington Commanders Team.
According to Forbes, Johnson’s investments are broad and diverse, but the largest asset in his portfolio is his 60% stake in EquiTrust Life Insurance. Since Johnson took over as majority shareholder in 2015, the company’s total assets have grown from $16 billion to $26 billion, with annual revenue of approximately $2.6 billion.