Ervin “Magic” Johnson is one of the greatest basketball players of all time. The five-time NBA Championship winner was a trailblazer on the court, carving out an illustrious career with the Los Angeles Lakers.
Johnson’s drive for success continued off the court, earning billionaire status in 2024, joining Tiger Woods and a handful of others.
Magic Johnson’s Net Worth
Johnson’s net worth currently sits at an eye-watering $1.2 billion.
His wealth is built through joint venture partnerships, working with up-and-coming brands and businesses. Johnson used his profile to leverage these businesses and drove massive success on the back of this.
The majority of his $1.2 billion empire comes from a 60% stake in Equitrust, a life insurance company.
On top of this, the athlete-turned-entrepreneur also has ownership stakes in several professional sports teams, including the NFL’s Washington Commanders and MLB’s Los Angeles Dodgers.
Career Earnings
His career earnings, while still highly impressive numbers for the Average Joe, make up just 3.3% of Johnson’s net worth, at $40 million.
To put this in context, his total earnings are the same as Giannis Antetokounmpo now earns in a single season.
As a rookie, after being selected first in the 1979 NBA Draft, Johnson earned $460,000/year for a four-year contract at the LA Lakers.
Arguably more important than being a no. 1 draft pick was when, in 1984, he signed a $25 million 25-year deal to stay with the LA Lakers. How the NBA Draft works is hugely important in the NBA, but no contract like Johnson’s had ever been signed before.
This would see him earn long past the end of his playing career, retiring from the game in 1996 after a layoff battling the HIV virus.
Throughout his 25-year deal, multiple performance-based bonuses were included. This saw him net up to $3.14 million in the 1988/89 season alone, reaching the overall figure of $40 million.
Career After Basketball
With $40 million in his back pocket and having won five NBA Championships – one short of reaching our list of players with the most NBA rings – you’d think Johnson might sit back and enjoy retirement.
But you couldn’t be further from the truth.
Even during his playing days, Johnson was keen to take a step into the business world. He formed a father-son relationship with the then LA Lakers owner, Jerry Buss, who no doubt influenced and encouraged Magic to use his brand to full effect.
Here’s a look at some of Johnson’s businesses (under the umbrella of Magic John Enterprises) and how they’ve performed:
Endorsements and Business Ventures
Other Sporting Investments
- Los Angeles Dodgers: Purchased as co-owner in 2012 for $2 billion. At the time, this was the most expensive franchise purchase in American sporting history.
- LAFC: In 2014, MLS franchise LAFC was bought. In 2022, it became the first MLS franchise to exceed a $1 billion valuation.
- Los Angeles Sparks: A minority owner of the WNBA team, LA Sparks, bought in 2014. Just two years later, they won their first Championship.
- Team Liquid: First venture into eSports gaming. Bought alongside Ted Leonisis (Washington Wizards co-owner) and Peter Guber (Golden State Warriors co-owner).
Conclusion
Johnson will always be known as one of the best basketballers of all time, but his work after his career is equally impressive.
Amassing a celebrity net worth of over $1.2 billion is incredibly impressive, and puts him in an exclusive club of basketball-playing billionaires that includes Michael Jordan and LeBron James.
He is regarded as a pioneer by those currently playing professional sports and planning for the next stage of their careers.
There’s no doubt that the influence of long-time mentor and friend Jerry Buss helped get the ball rolling, but Johnson’s success comes down to his dedication to working hard on and off the court.
References
- https://finance.yahoo.com/news/listen-learn-magic-johnson-shares-171034304.html (Yahoo Finance)
- https://boardroom.tv/magic-johnson-business-companies-investments/ (Boardroom)
- https://www.magicjohnson.com/ (Magic Johnson Enterprises)