From Basketball Superstar to Business Mogul: The Story of Magic Johnson's Net Worth
Magic Johnson was one of greatest athletes of all time, and now he's one of the top entrepreneurs in the sports world. What is Johnson's net worth?
- Most of Magic Johnson's net worth was earned after his retirement from the NBA
- Magic Johnson Enterprises Investments
- Magic Johnson held the highest-paying contract in sports history at one time.
- Magic Johnson's Career Earnings Broken Down
- Magic Johnson has also contributed millions to HIV research
- Magic Johnson is a champion on and off the court
Former Los Angeles Laker Earvin "Magic" Johnson has made an impact in his career as a professional athlete, as well as an entrepreneur.
His company Magic Johnson Enterprises is valued at over $1 billion, and he has a widespread investment portfolio with investments in major sports franchises such as the WNBA, MLS, MLB, and NBA.
With the amount of success Johnson has had, fans are curious about the Lakers legend’s net worth. So, how much did he make off the court following his retirement from the NBA in 1992? Keep reading to find out.
Former NBA player and former President of Basketball Operations Los Angeles Lakers
Net worth: $600 million
Earvin "Magic" Johnson Jr. is a former member of the Los Angeles Lakers NBA team and current Chairman and CEO of Magic Johnson Enterprises. Johnson has invested in global companies throughout his entrepreneurial career, especially in the sports industry.
Birth name: Earvin "Magic" Johnson Jr.
Birthplace: Lansing, Mich.
Birthdate: August 14, 1959
Marriage: Cookie Johnson
Children: EJ Johnson, Elisa Johnson, Andre Johnson
Education: Michigan State
Most of Magic Johnson's net worth was earned after his retirement from the NBA
Magic Johnson has an estimated net worth of $600 million, according to Clutch Points, with just $40 million coming from his NBA salary.
Since retiring, he has invested in various sports entities such as the LA Lakers and Dodgers, and today, his company, Magic Johnson Enterprises, is worth more than $1 billion.
Magic Johnson Enterprises has been an angel investor in various global companies, but it also focuses on investing and helping launch companies that are owned by people of color.
The conglomerate has also been responsible for providing million-dollar resources to communities in need, including building movie theaters in different parts of the U.S.
“I wanted to show that athletes could go from the ball court to the board room,” Johnson told Future of Business and Tech. "Basketball was about details and paying attention to the details. I’m a very detailed organized guy as a CEO now. And competitive as hell and I want to win for my partners, investors, for myself and for the community."
Since its founding in 1987, Magic Johnson Enterprises has invested in and acquired a multitude of diverse companies. These investments are the biggest reason for Johnson's mammoth net worth. Magic Johnson Enterprises Investments are listed below.
Magic Johnson Enterprises Investments
|1990||Pepsi-Cola Distribution||Purchased Pepsi-Cola distributorship.|
|1995||Sony Retail Entertainment||Partnered with Sony to create Magic Johnson Theatres.|
|1998||Starbucks||Partnered with Starbucks to open coffee shops in urban areas.|
|1998||TGI Friday's||Partnered with Carlson Restaurant Worldwide to open Magic Johnson TGI Friday's.|
|2000||Dayton Dragons||Purchased a share of the Dayton Dragons.|
|2000||24 Hour Fitness||Partnered with 24 Hour Fitness.|
|2004||Burger King||Partnered with Burger King to open 29 restaurants.|
|2008||Best Buy||Partnered with Best Buy.|
|2011||Vibe Holdings||Invests in Vibe Holdings becoming Chairman.|
|2012||LA Dodgers||Partnered with Guggenheim Baseball Management to purchase Dodgers.|
|2014||LA Sparks||Purchased WNBA team Los Angeles Sparks.|
|2014||LAFC||Founding member of group that established MLS team LAFC.|
|2016||Topgolf||Invests global sports entertainment company Topgolf.|
|2018||Naturade||Invested in Naturade, a company that creates natural products to help fight diabetes.|
|2022||SwimWin Sports||Acquired two Metaverse sports teams in partnership with SwimWin Sports.|
Magic Johnson held the highest-paying contract in sports history at one time.
Johnson is widely known for his tenure with the Los Angeles Lakers as a player, coach, and executive, but it was his historic NBA contract that changed professional sports contract negotiations entirely.
In 1981, at the age of 21, he signed a very unique contract with the Lakers. The deal was worth $25 million, the highest-paying contract in sports history at the time.
What made the contract more interesting was that Johnson agreed to have the contract spread out for 25 years, making it also the longest sports contract at the time.
Johnson became the third player in NBA history to have an annual salary of more than $1 million.
While it doesn’t seem like a lot of money compared to the NBA contracts we see today, it was a huge jump from the former NBA player’s first contract. Johnson was only making $460,000 a year in his first deal with LA, having a 5-year contract worth $2,300,000.
While long sports contracts are not as common as they used to be, Johnson’s helped inspire future extensive sports deals including former NBA players Penny Hardaway and Chris Webber.
Magic Johnson's Career Earnings Broken Down
Magic Johnson has also contributed millions to HIV research
In 1991, Johnson announced publicly that he was HIV positive and said he would dedicate his life to battling the disease.
Since then, he has also, through his foundation, awarded over $14 million dollars in grants to organizations that provide HIV/AIDS education, testing, and support services. Johnson also continues his work breaking the stigma of HIV in the community.
"It proved to be the right decision," Johnson told CBS Sports about his decision to come out as HIV positive. "It helped people who were living with not just HIV and AIDS, but with any disease, that you can live on, you can be — live a productive life."
Magic Johnson is a champion on and off the court
Magic Johnson's net worth is a testament to his incredible success as a businessman and athlete. Throughout his career, he has demonstrated an impressive ability to identify profitable investment opportunities and build successful enterprises. As a result, he has amassed a net worth of approximately $600 million, making him one of the wealthiest athletes in the world.
His diverse portfolio of investments and his ongoing involvement in various business ventures suggest that he will continue to be a major player in the business world for years to come. However, it is important to note that while his net worth is undoubtedly impressive, it is only one measure of his accomplishments, and his impact on sports, business, and philanthropy will continue to be felt long after his net worth is no longer a topic of discussion.