Topline
NBA Hall of Famer Earvin ‘Magic’ Johnson has recently been recognized as a billionaire, as reported by Forbes (Magic Johnson Is Now A Billionaire by Matt Craig). Johnson is only the fourth professional athlete to achieve this milestone, thanks to his successful career as an investor in professional sports teams, movie theaters, Starbucks cafes, and even a health insurance provider.
Key Facts
Following his retirement from the NBA in 1991 after being diagnosed with HIV, Johnson holds a minority stake in the NFL’s Washington Commanders. This came after billionaire Josh Harris purchased the team for $6.05 billion in May.
At the age of 64, Johnson also has ownership stakes in three Los Angeles professional sports franchises: the WNBA’s Los Angeles Sparks, MLB’s Los Angeles Dodgers, and the MLS’ LAFC.
Forbes now estimates his net worth to be $1.2 billion, attributing it to his ownership in these teams and major investments in various industries. Notably, Johnson purchased a 60% stake in Iowa-based life insurance company EquiTrust in 2015.
EquiTrust constitutes the largest part of Johnson’s personal net worth, with the company’s assets skyrocketing from $16 billion to $26 billion since the purchase. Additionally, it generates annual revenues of roughly $2.6 billion.
Johnson has also been involved in the establishment of a chain of movie theaters in partnership with Loews. These theaters are primarily located in predominantly Black neighborhoods across major cities such as Los Angeles, Atlanta, Houston, and New York City. He has also collaborated with Starbucks to open cafes in Black neighborhoods through a 50/50 venture.
In 1990, the 12-time NBA All-Star bought a minority stake in a PepsiCo bottling plant outside Washington D.C. in a $60 million deal with investor Earl Graves.
Key Background
The Los Angeles Lakers selected Johnson as the first overall pick in the 1979 NBA draft, following his success in leading the Michigan State Spartans to the NCAA championship and defeating his career rival Larry Bird’s Indiana State. Johnson spent his entire professional career in Los Angeles and achieved significant milestones, including three-time MVP and three-time NBA Finals MVP. He played a crucial role in the Lakers’ dominance during the 1980s, winning five championships from 1980 to 1988. However, Johnson’s career took an unexpected turn when he tested positive for HIV after the 1990-1991 NBA season. In a press conference on November 7, 1991, he announced his immediate retirement from basketball to focus on battling the disease and becoming an advocate for HIV prevention. After a four-year hiatus, Johnson returned for the 1995-1996 season, playing 32 games before retiring again.
Surprising Fact
Johnson is only the fourth professional athlete identified as a billionaire by Forbes, joining the ranks of NBA legends Michael Jordan and LeBron James, as well as golfer Tiger Woods. However, Johnson’s wealth primarily stems from his ventures off the court. While he made a total of $40 million during his Lakers’ career, equivalent to roughly $110 million adjusting for inflation, it falls considerably short of the $479 million earned by LeBron James since joining the NBA in 2003.
Big Number
$136 million. This is the combined on-field and off-field earnings of soccer great Cristiano Ronaldo between May 2022 and May 2023, making him the highest-paid athlete in the world, according to Forbes.
Further Reading
Magic Johnson Is Now A Billionaire (Forbes)
Michael Jordan Is Now Worth $3 Billion And Joins The Forbes 400 (Forbes)
Russell Westbrook Means Business (Forbes)
The Highest-Paid NBA Players 2023 (Forbes)
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Emily Turner is your source for everything NBA. As a dedicated basketball enthusiast, she offers insights into NBA games, player highlights, trade rumors, and the league’s evolving dynamics. Emily’s love for the sport shines through in her comprehensive NBA coverage.
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