What Is Magic Johnson’s Net Worth?

Why Trust Techopedia Gambling
Why Trust Techopedia Gambling
Magic Johnson Net Worth
Image: Twitter/AndrewPetcash

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.

Magic Johnson career earnings
Image: Twitter/ESPNstatsinfo

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

Magic Johnson Businesses
Image: Twitter/FOS
Equitrust

Magic Johnson Enterprises (MJE) acquired a 60% stake in life insurance company Equitrust in 2015. The company works on estate and retirement planning and has seen exponential growth under MJE’s ownership.

The company has increased from $16 billion in assets under MJE’s management to $26 billion in 2024.

Johnson’s billionaire status has a lot to do with this shrewd purchase and expansion.

Magic Johnson Theatres

1995 was the year that MJE started to gain traction. Its first notable equity stake was a 12-screen multiplex movie theatre called Loews.

He rebranded and formed Johnson Development Corporation, closing a huge deal with Sony Retail Development. The goal was to build theatres across the US, prioritizing underserved communities.

1998 Sony struck a deal with Loews and Cineplex to merge the two, reportedly worth $1 billion. The company went global, with complexes in the United States, Canada, Mexico, South Korea, and Spain.

Johnson was able to cash out, locking in substantial profits before the company eventually declared Chapter 11 in 2001.

Starbucks

In 1998, Johnson’s Starbucks adventure set sail. At the time, Starbucks had around 60 stores across the United States, but were growing quickly.

Johnson wanted to get on board with the then-owner, Howard Schultz. Initially, he failed to convince Shultz of the untapped market of inner-city areas. However, Johnson used his success in the theatre sector as leverage to get a deal done.

He invited Schultz to one of his packed theatres where “500 women were inside”, highlighting that, as Johnson had said, there was untapped potential in these areas.

In 2010, Johnson’s Starbucks empire was sold for a reported $100 million.

Burger King and TGI Friday's

Burger King and TGI Friday’s were already household names when MJE got involved in 2004.

As part of the deal, Johnson used his name above the door to brand Magic Johnson’s TGI Fridays, which was wildly successful.

They opened 30 stores at that time and still hold the majority of these today.

LA Lakers

In 1994, Johnson bought a 4.5% stake in the LA Lakers for $10 million. The deal was part of contract negotiations while still playing, giving him equity in the business side of things, along with a healthy salary.

His stake was sold in 2010 in a deal worth $29 million. However, in a rare exception to Johnson’s incredible business success, timing was poor.

The sale went through right before NBA team values exploded. In 2023, his stake would have been worth $265 million.

Betting with a good NBA sportsbook can be difficult, but that is a bad beat on another level.

Washington Commanders

Poor timing with the LA Lakers did not deter his love for sports investment. In fact, it drove him to more success.

In 2023, MJE made the biggest franchise purchase in American sporting history, acquiring the NFL’s Washington Commanders for $6.05 billion.

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.

Jonathan Askew
Sports Betting and Casino Expert
Jonathan Askew
Sports Betting and Casino Expert

Jonathan is a freelance writer working with Techopedia. He has been working within the gambling sector for over 15 years and has been fortunate enough to work with brands that include Gambling.com, CheekyPunter.com, BasketballInsiders.com and Betfair. He specializes in US and UK-based sports and casino content for Techopedia.