Magic Johnson (Photo: Instagram, @magicjohnson)
Basketball legend Earvin “Magic” Johnson has officially achieved billionaire status, joining the elite ranks of only a few athletes, which include Tiger Woods, LeBron James, and Michael Jordan. Forbes estimates his net worth at $1.2 billion, per Forbes.
Here are five key factors that have contributed to his remarkable bottom line.
Sports team ownership has played a major part to Johnson, 64, becoming a billionaire. He holds a minority stake in several prominent sports teams, including the Washington Commanders (NFL), the Los Angeles Sparks (WNBA), the Los Angeles Dodgers (MLB), and the LAFC (MLS).
During his successful career as a professional basketball player in the National Basketball Association (NBA), pulled in a substantial salary. Johnson played for the Los Angeles Lakers for 12 seasons, contributing to his net worth. In November 1991, he made the shocking announcement that he was HIV-positive. He left the sport soon after. He then returned to the Lakers for one more season in 1995 and retired a final time following that season in 1996. He retired at the age of 37.
About $40 million of Johnson’s net worth was from playing in the NBA.
One of the most significant contributors to Johnson’s wealth was his acquisition of EquiTrust, a life insurance company, in 2015, TMZ reported. He purchased a 60 percent stake in the company, which has since seen major growth. Forbes now estimates the company’s value at $26 billion, with annual revenues of $2.6 billion.
Johnson’s success extends beyond sports and investments. He has ventured into various business endeavors through his Magic Johnson Enterprises. Notable ventures include Loews movie theaters and Starbucks cafes, strategically opened in predominantly Black neighborhoods. He has also made investments in brands like Burger King and 24 Hour Fitness, Entrepreneur reported.
Johnson’s passion for the potential of the Black community has played a significant role in his success. His achievements with the Magic Johnson Theatres and Starbucks partnerships have paved the way for large retailers to recognize the value of investing in underserved communities.
“Retail has made a mistake in thinking they couldn’t make money in the Black community,” Johnson said in a 2021 interview with the New York Times. “And sure enough, we proved that wrong with the Magic Johnson Theatres. We proved it wrong with the Starbucks. That’s why you see big retailers going into urban America more now than ever because they know they can get a return on investment.”
Magic Johnson (Photo: Instagram, @magicjohnson, https://www.instagram.com/p/CyMiWwKP-Fo/?hl=en&img_index=1)
