- The 64-year-old former Lakers guard has an estimated net worth of $1.2 billion
- Magic once owned 4.5% of the Lakers, but sold it in 2010.
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Magic Johnson has been announced as the fourth athlete to become a billionaire, joining NBA superstars Michael Jordan and LeBron James and golfer Tiger Woods.
The 64-year-old former Los Angeles Lakers guard is believed to have a net worth of approximately $1.2 billion this year, according to multiple media reports.
Since retiring in 1996, Magic’s wealth has grown exponentially. His investments outside of basketball paid off, ultimately paving the way for the five-time NBA champion to become a member of the ten-figure club.
Magic bought a 60% stake in an Iowa-based life insurance company called EquiTrust in 2015, and he has been making big money over the years.
What’s more, it’s the largest asset in Magic Johnson’s corporate portfolio. According to reports, since taking over, Magic has increased the company’s total assets from US$16B to US$26B, with annual revenue of approximately US$2.6 billion. Forbes.
Magic Johnson, 64, is third NBA player with 10-figure net worth
Over the years, Johnson’s investments outside of basketball have paid off
“He was born with this special talent; he’s had it from the beginning of his career,” Mandalay Entertainment CEO Peter Guber told the outlet. He has invested in multiple projects with Magic: The Gathering businesses, including the Los Angeles Dodgers.
“If I knew exactly what it was, I would put it in a bottle and give it to myself and everyone in the company.”
Magic: The Gathering has been a major player in the entertainment industry, particularly in movie theaters, fast food franchises, real estate, health care, and life insurance.
He has a partnership with Starbucks and has more than 100 coffee shops in predominantly black neighborhoods in major U.S. cities.
Magic also owns an additional minority stake in the Pepsi-Cola bottling plant located outside Washington, D.C.
Johnson (center) recently became a minority owner of the NFL’s Washington Commanders
The three-time NBA MVP bought a 4.5% stake in the Lakers for $10 million in 1994 before selling it to health care billionaire Patrick Soon Shiong in 2010. Forbes estimates the Magic stake is worth $29 million. However, had he remained invested in the Purple and Gold, his stake in the team would be worth more than $265 million today due to the increase in NBA team values.
Johnson also had the opportunity to invest in the Golden State Warriors in 2010, but turned down the opportunity due to his loyalty to the Lakers.
In addition to the Dodgers, Magic has partial ownership interests in a number of other professional sports teams. He also oversees the WNBA’s Los Angeles Sparks and MLS’ LAFC. He recently partnered with Josh Harris and this year became a minority owner of the NFL’s Washington Commanders.
“We all owe Magic a debt,” Shaquille O’Neal once said of the former basketball player’s business acumen.