The Los Angeles Lakers’ legendary level guard turned one of the crucial recognizable gamers on this planet, because of his charisma and on-court brilliance. And in his prime, he made extra money than simply about anybody within the basketball world.
Drafted in 1979, Johnson and then-owner Jerry Buss constructed a dynasty that reshaped the NBA. Buss’ whole imaginative and prescient for the Lakers centered round Magic. Right here’s a have a look at how a lot Johnson earned throughout his taking part in days — and the way he turned that into tens of millions extra.
Magic Johnson’s Eye-Opening Contract Particulars Explored
According to Spotrac, Johnson signed a five-year, $2.3 million rookie deal after leaving Michigan State. That labored out to a median of $460,000 per yr — an enormous wage on the time. He delivered titles and rapidly turned a league star.
Later, Buss supplied him a landmark 25-year, $25 million contract extension — the primary of its sort — beginning in 1984 and operating by means of 2009. It paid Johnson $1 million yearly. Though his complete NBA profession earnings sat round $40 million, his wealth got here from endorsements and enterprise ventures.
According to Forbes, Johnson now has a web value of $1.5 billion, making him one of many richest basketball gamers ever. His off-court earnings helped him attain that stage far past what he made within the league.
Magical Investments and Endorsements Take Him to the Prime
At his peak, Johnson made between $2 million and $4 million a yr in endorsements. Despite the fact that the NBA wasn’t as profitable again then, he constructed long-term wealth by means of enterprise strikes — investing in film theaters, Starbucks, well being care, and actual property.
One in all his greatest wins got here from a 60% possession stake in EquiTrust, a life insurance coverage firm. When Johnson turned concerned, the corporate had $16 billion in property beneath administration. That’s since grown to $27 billion.
Nonetheless, not each choice paid off. Johnson as soon as turned down a proposal from Nike that may’ve paid him in inventory and long-term fairness. As an alternative, he signed with Converse for upfront money, assured endorsement publicity, and what appeared like a safer wager on the time. Nike finally exploded — thanks partially to Michael Jordan — and have become the highest model for athletes. In line with studies, that missed deal might have been value $5 billion immediately.
Johnson’s sports activities portfolio can be spectacular. Along with his enterprise ventures, he owns minority stakes in MLB’s Los Angeles Dodgers, MLS’s LAFC, the NFL’s Washington Commanders, and the WNBA’s Los Angeles Sparks. In terms of off-court wins, Magic may be unmatched.
