NBA Legend Earvin ‘Magic’ Johnson Joins Michael Jordan, LeBron James, and Tiger Woods as a Billionaire
Earvin ‘Magic’ Johnson, a former NBA Hall of Famer, has reached billionaire status, as reported by Forbes. He is now the fourth professional athlete to achieve this milestone. Johnson’s journey to billionaire status is a result of his successful post-basketball career, where he diversified his investments into various sectors, such as professional sports teams, movie theaters, Starbucks franchises, and even a health insurance provider.
The Path to Billionaire Status
Magic Johnson retired from the NBA in 1991 after receiving a diagnosis of HIV. Since then, he has engaged in various investments, including a minority stake in the NFL’s Washington Commanders. This stake followed billionaire Josh Harris’ acquisition of the team for $6.05 billion in May.
Apart from the Washington Commanders, the 64-year-old Johnson holds ownership interests in several Los Angeles professional sports franchises. These include the WNBA’s Los Angeles Sparks, MLB’s Los Angeles Dodgers, and the MLS’ LAFC.
Forbes’ latest estimation pegs his net worth at $1.2 billion, which is primarily the result of his stakes in these sports teams and significant investments in various industries. Notably, Johnson acquired a 60% stake in Iowa-based life insurance company EquiTrust in 2015. This investment now forms the largest part of his personal net worth. Since the purchase, EquiTrust’s assets have surged from $16 billion to $26 billion, with annual revenues of around $2.6 billion.
Beyond Sports – Expanding Business Ventures
Over the past three decades, Magic Johnson has been instrumental in establishing a chain of movie theaters in partnership with Loews. These theaters were strategically set up in predominantly Black neighborhoods across major cities in the United States, including Los Angeles, Atlanta, Houston, and New York City. In addition, he initiated a 50/50 venture with Starbucks to open cafes in Black neighborhoods, contributing to community development.
Moreover, Johnson owns a minority stake in a PepsiCo bottling plant located outside Washington D.C. He acquired this stake through a $60 million deal with investor Earl Graves in 1990.
The Remarkable Journey of Magic Johnson
Magic Johnson’s journey began when the Lakers selected him as the first overall pick in the 1979 NBA draft. He achieved this recognition after leading the Michigan State Spartans to an NCAA championship victory over his career rival, Larry Bird’s Indiana State. Magic played his entire professional career in Los Angeles and was a three-time MVP and three-time NBA Finals MVP. He was a key part of the dominant 1980s Lakers team, securing five championships between 1980 and 1988. However, after testing positive for HIV following the 1990-1991 NBA season, he announced his immediate retirement from the game on November 7, 1991. This marked the beginning of his commitment to battling HIV and promoting prevention. He returned to play 32 games for the Lakers in the 1995-1996 season before retiring once again.
Surprising Billionaire Status
Notably, Magic Johnson is only the fourth professional athlete identified by Forbes as a billionaire. He joins the ranks of NBA legends Michael Jordan and LeBron James, as well as golfer Tiger Woods. However, Johnson’s income is primarily derived from off-court investments, in stark contrast to his on-court earnings. He earned a total of $40 million from his Lakers’ career, equivalent to approximately $110 million when adjusted for inflation. This falls significantly short of the $479 million LeBron James has earned since joining the league in 2003.
A Glimpse at Other Notable Earnings
While Magic Johnson’s achievement is remarkable, it’s worth noting that in the broader realm of professional athletes, soccer great Cristiano Ronaldo tops the list. Between May 2022 and May 2023, Ronaldo earned an astounding $136 million, making him the world’s highest-paid athlete, according to Forbes.
