Magic Johnson Net Worth (Money & Salary)

What is the net worth, salary, and career earnings of Magic Johnson?

Earvin “Magic” Johnson Jr., a retired American basketball player and entrepreneur, boasts a net worth of $800 million. Following high school and college basketball championships, he was chosen as the first overall pick in the 1979 NBA Draft by the Los Angeles Lakers. He spent 13 seasons as the point guard for the Lakers, where he secured the NBA Championship and earned the NBA Finals Most Valuable Player Award during his rookie year. Additionally, Johnson served as the former president of basketball operations for the Lakers.

The initiation of Magic Johnson’s NBA career occurred when he joined the Los Angeles Lakers as the first overall pick in the 1979 NBA Draft. Across his 13-year tenure with the Lakers, he participated in 12 All-Star Games, achieved five NBA championships, and thrice received the NBA Most Valuable Player (MVP) honor. Recognized for his remarkable versatility, Johnson covered all five positions during the NBA Finals and significantly transformed the point guard role due to his distinctive combination of size and vision on the court. His competitive rivalry with Larry Bird is renowned as one of the finest in basketball history, greatly enhancing the sport’s popularity in the 1980s.

After his basketball retirement in 1991, prompted by his HIV diagnosis (although he had a brief comeback in 1996), Johnson remained in the public eye. He shifted his attention towards entrepreneurship and established Magic Johnson Enterprises, a conglomerate that invests in diverse industries like entertainment, real estate, and healthcare.

A standout success in Johnson’s entrepreneurial journey was his collaboration with Starbucks CEO Howard Schultz to launch Starbucks locations in disadvantaged urban neighborhoods. This initiative not only turned out to be profitable but also created job opportunities and boosted investment in communities typically overlooked by larger corporations.

Johnson stayed involved in the sports sector even after his playing days ended. He has held stakes in various sports franchises, including significant ownership in the Los Angeles Dodgers and the Los Angeles Sparks of the WNBA. His influence also encompasses advocacy work for HIV/AIDS awareness and prevention.

Did Magic Johnson Turn Down A $5 Billion Deal from Nike?

An intriguing tale surfaced, notably echoed in a season 2 episode of HBO’s “Winning Time: The Rise of the Lakers Dynasty,” claiming that Magic Johnson declined a proposition from Nike in the late 1970s that could have made him a multi-billionaire.

As per the narrative, in mid-1979, following his NCAA Final victory with Michigan State (over Larry Bird and Indiana State), all leading shoe brands approached Magic with lucrative proposals. Converse became the primary contender, offering him $100,000 annually, equating to about $420,000 today.

Magic has mentioned in several interviews that Phil Knight, the founder of Nike, contacted him to endorse the emerging brand’s sneakers, presenting a deal that lacked significant cash compensation (given Nike’s financial situation at the time).

“When I first came out of college, all the shoe companies chased after me. There was this guy, Phil Knight, who had just begun Nike. He mentioned something about stocks. ‘I’m gonna give you a lot of stocks.’ I was unfamiliar with stocks.“

The latest iteration of the story indicates that the arrangement would have granted Magic 100,000 shares of Nike. As stated in “Winning Time,” by 2023, those shares would have been valued at $5.2 billion. This legend стало positioned it

as if Nike had proposed 100,000 shares to correspond with Converse’s $100,000 offer. Additionally, Winning Time asserted that Magic could have made $1 for each shoe sold.

According to Magic himself, he grew up in the inner city and had no knowledge of stocks, leading him to decline the offer.

“Boy, did I make a mistake. I’m still kicking myself. Every time I’m in a Nike store, I get mad. I could’ve been making money off of everybody buying Nikes right now…

I would have been a trillionaire by now,” said Magic. “Just think about what that stock was worth in 1979 and what it is today. Yikes. It bothers me every time I think about it, and I’m like, man, Michael Jordan would have been making me so much money…“

But is the story actually accurate? Ehhh… likely not.

In fact, by July 1979, Magic had already committed to Converse. This was merely four months after he won the NCAA Championship and just weeks after completing his Sophomore year before turning professional.

Moreover, Nike had not yet gone public in mid-1979. It went public over a year later on December 12, 1980. While it’s conceivable that Magic could have received private shares in pre-IPO Nike, it seems quite improbable that Phil Knight would have made such an offer. Additionally, it’s noteworthy that Phil Knight is currently worth approximately $40 billion, placing him among the 30 richest individuals globally. Does it make sense that Nike would have offered private shares equal to about 12.5% of the founder’s ownership?

Lastly, it’s widely recognized that Michael Jordan’s contract with Nike a few years later was the first time any athlete was offered stock or a share of sales from its shoes.

Overall, this narrative is probably more fiction than fact.

Early Life

Born on August 14th, 1959, in Lansing, Michigan, Magic Johnson was the son of Earvin Sr., who worked at a General Motors assembly line, and Christine, who was a janitor in a school. From a young age, Magic developed a passion for basketball, inspired by players like Earl Monroe. He quickly joined the basketball team at Everett High School. A local sportswriter dubbed him “Magic” after he achieved a triple-double with 36 points, 18 rebounds, and 16 assists at just 15 years old. The nickname was firmly established during his senior year when he led his team to the state championship.

Receiving offers from numerous esteemed colleges, Johnson opted to remain close to home and enrolled at Michigan State University. In 1979, he guided his team to the NCAA finals, where they competed against Indiana State University and their star player, Larry Bird. Their matchup turned into the most-viewed college basketball game ever broadcast, initiating one of the greatest rivalries in sports. Michigan State ultimately triumphed over Indiana, and Johnson earned the title of Most Outstanding Player of the Final Four.

NBA Career

Magic was selected as the first overall pick in the 1979

Magic was drafted by The Los Angeles Lakers. During his rookie season, alongside teammate Kareem Abdul-Jabbar, he helped lead the Lakers to an NBA championship, earning the MVP title of the NBA Finals. Over the years, Magic secured five NBA Championships with the Lakers in the seasons of 1980, 1982, 1985, 1987, and 1988. He achieved the status of three-time NBA Finals MVP in the years 1980, 1982, and 1987, and was a three-time NBA Most Valuable Player in 1987, 1989, and 1990. Magic participated in the All-Star game 12 times and was awarded MVP of the All-Star game twice. He is regarded as the greatest point guard in history.

Unfortunately, Magic’s career faced a significant challenge when he contracted HIV in 1991.

Nearing the conclusion of the 1993-94 NBA season, Magic made a return to the NBA as the Lakers’ coach, taking over from Randy Pfund and Bill Bertka at the suggestion of team owner Jerry Buss. Initially, the Lakers performed well under Johnson’s leadership, winning five of their first six games. However, following a stretch of five consecutive losses, Johnson decided to step down from his coaching role after the season. The Lakers wrapped up the season with a ten-game losing streak, and his final coaching record stood at 5–11. He expressed that coaching was never his aspiration, leading him to instead purchase a 5% share of the team in June 1994.

In the 1995-96 season, at the age of 36, Magic Johnson made an attempt to return as a player, rejoining the Lakers. The team achieved a record of 22–10 during Johnson’s presence, which he deemed his final comeback as “a success.” However, after the team was eliminated by the Houston Rockets in the first playoff round, Johnson announced his permanent retirement.

Over the course of 905 NBA games, Johnson accumulated 17,707 points, 6,559 rebounds, and 10,141 assists, averaging 19.5 points, 7.2 rebounds, and 11.2 assists per game — the highest assists per game average in NBA history. He shares the playoff record for assists in a single game (24), holds the Finals record for assists in a game (21), and has recorded the most playoff assists (2,346). Additionally, Johnson is the only player to average 12 assists in an NBA Finals series, achieving this feat six times. He also holds the single-game record for assists in an All-Star Game (22) and the career assists record for All-Star Games (127).

Retirement

In November 1991, following the announcement of his infection, Johnson established the Magic Johnson Foundation aimed at addressing HIV issues. He has actively advocated for HIV/AIDS prevention and promoted safe sex practices, while also being recognized as an entrepreneur, philanthropist, and broadcaster. His public confession of being HIV-positive in 1991 had a profound impact on public perception, helping to dismantle the stereotype that HIV was solely a “gay disease” irrelevant to heterosexual individuals.

Magic the Entrepreneur

Magic’s retirement was far from uneventful. He founded a business empire known as Magic Johnson Enterprises, currently valued at over $1 billion, contributing to a personal net worth of $600 million. His enterprises encompass Magic Johnson Theaters, a movie studio, and a promotional marketing firm. In 1994, he invested $10 million to acquire a 5% stake in The Lakers, which he later sold in 2010 for an estimated $50-60 million to billionaire Patrick Soon-Shiong. Additionally, Johnson divested his chain of Starbucks for $75 million in 2010.

On March

On March 27, 2012, The Los Angeles Dodgers were acquired by Magic along with a group of partners from Frank McCourt for a sum of $2 billion. More info here: Magic Johnson Buys The Dodgers for $2 Billion

In 2014, Johnson took part in the acquisition of the Los Angeles Sparks, a WNBA team. He also revealed his co-ownership of the Major League Soccer expansion team, Los Angeles Football Club.

In 2015, Johnson gained a controlling stake in EquiTrust Life Insurance Company, which oversees $14.5 billion in annuities, life insurance, and other financial products.

In 2023, Magic became a member of an investment group led by Josh Harris that purchased the Washington Commanders of the NFL for $6.05 billion.

Additionally, Magic Johnson is an investor in aXiomatic eSports, which is the ownership company of Team Liquid.

Personal Life

In 1991, Johnson wed Earlitha “Cookie” Kelly, now recognized as Cookie Johnson, during a small ceremony in Lansing, Michigan. The couple welcomed their son, Earvin III (known as E.J. Johnson), in 1992. EJ featured on the reality TV series Rich Kids of Beverly Hills. In 1995, Magic and Cookie adopted a daughter named Elisa. They currently reside in Dana Point, California, and Beverly Hills.

From a previous relationship, Johnson has a son named Andre Johnson, born in 1981 to Melissa Mitchell. Although Andre was raised by his mother, he spent summers with Johnson and later took on the role of marketing director for Magic Johnson Enterprises.

Salary Highlights

Throughout his playing career, Magic amassed just over $18 million in salary along with additional millions from endorsements.

Real Estate

In Beverly Hills, Magic Johnson and his wife possess a home in the gated area known as Beverly Park. They also have a Tuscan-style beach house in Dana Point, located in Orange County, California. Previously, the couple owned a house in Napili, Hawaii, but because it was too distant for their children while growing up, they exchanged it for the beach house situated approximately 75 miles south of Beverly Hills.

In 2022, Johnson’s Bel-Air estate, where he lived from 1981 to 1990, was listed for $14.5 million, but saw a price drop to $11.5 million in 2023. After winning his first NBA championship, Magic Johnson acquired the home for $600,000, later selling it for $2 million.