Magic Johnson

Earvin Johnson a.k.a. Magic Johnson’s net worth of $1.2 billion is just insane. While his nickname Magic was given to him for his creative ball handling skills, we think it suits him really well for his magical money-making skills as well. Mr. Johnson’s net worth would not have been in the billion range without his joint venture partnerships and shrewd investments. He’s been into everything from movie theaters to healthcare. Let’s dive deeper to know more about his staggering net worth and lifestyle.

What Is Magic Johnson’s Net Worth?  

As of September 2024. Magic Johnson’s net worth of $1.2 billion is larger than life in every aspect.

According to Forbes, Magic Johnson currently holds the spot at #2557 on its real-time billionaires list. Mr. Earvin made just $40 million in total as a Los Angeles Lakers player, and most of it was made during the peak of his career in the 1980s. During the same time period, he made between $2 million and $4 million every year in endorsements.

The major contributor to his net worth has been the 60% stake that he holds in Equitrust, a life insurance company. Previously, it was a $16 billion entity but now has grown to $27.5 billion in assets under management since Johnson took over in 2015. As of July 2024, Equitrust’s annual revenue was $75 million.

Johnson becoming the fourth billionaire athlete after Michael Jordan, LeBron James, and Tiger Woods was not just a play of destiny but his sheer foresight and smart entrepreneurial skills. He bought a 4.5% stake in the Lakers in 1994 for $10 million, and just before he sold it in 2010, it was around $29 million. Unfortunately, the same would have been worth more than $265 million in today’s times.

In 1998, Mr. Magic started spewing entrepreneurial magic again by establishing a 50/50 joint venture with Starbucks to open 100+ outlets in black neighborhoods. In 2010, he sold them back to the company for a whopping $75 million in profit. Johnson’s 50/50 deal with Sony Retail Entertainment in the 90s gave birth to Magic Johnson Theatres.

Johnson’s theaters and Starbucks deal "served as catalysts for redevelopment in urban communities and are widely recognized as the corporate blueprint for engagement and success with urban consumers across America," as per a statement on his company website.

The money that Magic made from the Starbucks and Lakers deal was utilized for buying a 2.3% stake in the Los Angeles Dodgers for $50 million in 2012. As per Forbes, the same share has more than doubled in value, meaning crossing a whopping $100 million mark. Besides, Johnson also has investments in other sports teams such as the Washington Commanders (NFL), Los Angeles Sparks (WNBA), and LAFA (MLS).

What Is Magic Johnson’s Claim To Fame? 

Magic Johnson’s rise to fame was a result of some life-changing events that brought him into the limelight, be it a positive or negative one. Let’s have a look at some of these events: 

• Rejecting Nike Deal: Magic rejected a deal with Nike in the late 1970s that would have made him a multi-billionaire without much effort. He accepted Converse’s $100,000 deal while neglecting Nike's $100,000 share deal. As per Nike’s current value, the Nike shares would have added more than $5.2 billion in his net worth. Magic stated that it was the biggest mistake in his life, and he still regrets it. 
• Larry Bird Rivalry: Magic’s rivalry with Larry Bird in the 1980s was one of the greatest in basketball history, thereby bringing fame to both the stars and their respective teams. 
• HIV Positive Announcement: In November 1991, Magic Johnson’s fans and basketball audience around the globe were shocked by his HIV-positive diagnosis. 
• Magic Johnson Enterprises: After retirement, Johnson focused on new business ventures and founded Magic Johnson Enterprises that focused on real estate, healthcare, and entertainment. The entity as a whole has grown tremendously and added significant value to Johnson’s net worth.

What Businesses Does Magic Johnson Own? 

Magic Johnson’s entrepreneurial spirit gave birth to several business ventures. The most successful ones are mentioned below: 

• Magic Johnson Enterprises: It was established in 1981 by Johnson to manage his investments in movie theaters, restaurants, real estate, and more. Currently, the same company makes close to $9.1 million annually while being worth close to $1 billion.
• Equitrust Life Insurance Company: As mentioned earlier, the fortunes of this company changed when Johnson took over with a majority stake of 60%. The company makes close to $75 million annually. 
• Magic Johnson Theatres: A 50/50 joint venture between Sony Retail Entertainment and Johnson paved the way for a successful chain of theaters. However, the same was sold to Loews Cineplex Entertainment for an undisclosed amount. Despite the name Magic Johnson, the theaters are completely controlled by AMC theaters.
• Burger King Franchises: Johnson acquired close to 30 Burger King outlets in Georgia, Alabama, Texas, and Florida. In 2022 alone, he made close to $15 million as net revenue from his Burger King outlets.
• 24 Hour Fitness Magic Johnson Signature Clubs: In 1998, Johnson signed a deal with 24 Hour Fitness to establish these signature clubs. Magic’s company owned these sports health clubs as he envisioned everyone to remain healthy and fit.
• Sodexo Magic: Sodexo Magic was founded in 2006 as a collaboration between Sodexo and Johnson. It is a food and services management company that provides services to universities, corporations, healthcare facilities, and more. Sodexo Magic’s peak revenue was $2.1 billion in 2023. Johnson states, “We always overdeliver to our customers. We want to make sure we put a smile on their face each and every day. As the leader, I want to empower our team to deliver best-in-class service.” 

Investments: 

Magic Johnson has invested in the most renowned sports portfolios that have the potential to increase his wealth several times. As mentioned above, Johnson has invested in Washington Commanders and is a co-owner of the same that is led by a 21-member group led by Josh Harris. 

The team was purchased in 2023 for a whopping price of $6.05 billion, becoming the most expensive franchise purchase in American sporting history. The LA Dodgers were purchased in 2012 for a whopping $2 billion, and Magic is one of the co-owners. In 2012, it was the most expensive franchise purchase in American sporting history.

The LAFC, which is an MLS franchise, is also co-owned by Johnson, and it was purchased in 2014. LAFC became the first MLS franchise to cross a $1 billion valuation in 2022. In 2016, eSports franchise Team Liquid got new owners and fresh investment from Johnson. He joined Washington Wizards co-owner Ted Leonisis and Golden State Warriors co-owner Peter Guber, who have invested in the Netherlands-based eSports franchise as well.

What Brands Has Magic Johnson Endorsed? 

Besides endorsing his own businesses or the ones he has invested in, Johnson has been a part of several other commercials to promote their products. Some of them are mentioned below:

• Converse: Johnson has appeared in a couple of Converse commercials. During his rookie years, he chose Converse over Nike by receiving $100,000 upfront and then every year. Nike, on the other hand, offered 100,000 shares and $1 on each shoe sold. However, he rejected Nike but regrets not partnering with it, as that would have added $5.2 billion to his worth as per its current value. He said, “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.
• KFC: Magic Johnson has been a part of KFC commercials since the 1990s. He also bonded with Michael Jackson over the bucket of chicken and shared the story on the Jennifer Hudson Show. When Johnson saw Jackson having KFC’s chicken, he exclaimed, “Michael, you eat Kentucky Fried Chicken!” and joined in to share the bucket.
• Natrol: The nutritional product firm partnered with Johnson in 2003 to support products that contain ImmuneEnhancer AG, including My Defense. By supporting the company's vision, Jackson said, “Nutrition is obviously a very important component to my health and the health of those in our community.”
• Cigna Healthcare: Johnson appeared in a commercial for Cigna Healthcare's Medicare Advantage plan. He was portrayed as a rookie who has been a rookie many times in his life, including in the NCAA, NBA, and entrepreneurship. Johnson and Cigna were also seen discussing supporting veterans and people with life-altering injuries.

How Does Magic Johnson Spend His Millions? 

Magic Johnson had always been keen on multiplying money and not splurging it recklessly. He advised the upcoming talent, “If you're earning money, please get you a business manager,” so as to not go broke. He even shared his secret mantra to become rich: Make money while people sleep. 

It essentially points at his businesses and investments that multiply his wealth even while he is asleep. He uses his insane amount of money to buy small stakes in sports teams. Plus, he invests in real estate through the Canyon-Johnson Urban Fund. He also owns a splendid car collection. 

How Many Cars and Other High-End Vehicles Does Magic Johnson Own? 

When you are a billionaire, you won’t mind spending some big bucks on a luxurious set of wheels or other modes of transportation. He owns a car collection worth more than $1 million. Let’s see what’s inside Magic Johnson’s garage: 

• 1979 Mercedes-Benz SL450: The SL450 is a timeless piece of extravagance. The sand exterior and tan leather interior made it stand out. Johnson was seen alongside a few times while driving and giving autographs to his fans. However, the same was sold just a year later to Tomie Jamieson. 
• Lincoln Mark LT Pickup Truck: A Lincoln truck? Yes, we know it sounds awkward, but the American luxury brand did make a special 2006 Mark LT pickup truck for the legendary player. Unlike a regular truck, this one had an upmarket interior and comfortable ride quality. The limited edition Magic Johnson truck was put up for auction via eBay, while Lincoln discontinued this truck after 2008. 
• Rolls-Royce Phantom Drophead Coupe: It is one of the prized possessions in Johnson’s garage. Besides the RR badge, this black Phantom Drophead is rare, as he is one of the 237 people in the world who own this custom model. He has been spotted a few times while driving this black beauty with white interiors. 
• Lincoln Navigator: Another Lincoln? Well, he’s been a part of several Lincoln Navigator and Aviator models. So, it was obvious for him to buy one. In 2006, he bought one for himself. He spent close to $55,000. 

Besides the above-mentioned cars, he owns a Bentley and Cadillac car as well. You can check out his entire car collection here. While Johnson's arch-rival Larry Bird's car collection can be seen here. 

Private Jet: 

Woah! Johnson owns a Gulfstream III private jet. He uses it for both personal and private trips. In 2020, the Jets’s external livery was changed to Los Angeles Dodgers and Lakers after both teams won. It is currently owned by Magic Johnson Entertainment but was previously owned by Clay Lacy and 11 different owners. It was bought in 2005, and it’s estimated value is $3 million.

How Many Houses Does Magic Johnson Own? 

Besides investing heavily into commercial spaces, Magic Johnson owns a lavish list of luxurious residential properties across the country. Some of these properties are: 

• Bel-Air Estate: The luxurious estate served as a home for the legendary NBA player from 1981 to 1990. He bought this house for just $600,000 and sold it for a profit of $2 million. The same estate was listed for $14.5 million in 2022, and then its price was reduced to $11.5 million in 2023. 
• Southern California House: The Tuscan-style beach house was designed by designer Michael Kreiss. Located on a high cliff, the villa gave spectacular views of the Pacific Ocean. The Mediterranean architecture added to the beauty of the location. This house was swapped for their Hawaii house to be closer to the Beverly Hills house. Johnson paid close to $7.6 million for this one.
• Century City Condo: Magic Johnson’s property portfolio includes a condo located in the Century City area of Los Angeles. The condo has 3 bedrooms, 3 bathrooms, and a balcony with views of the city. He bought the house for 2.5 million dollars in 2000.

What Are Magic Johnson’s Charitable Contributions? 

Magic Johnson has put his money to good use with multiple philanthropic efforts. Some of them are mentioned below: 

• Magic Johnson Foundation: It was founded by Magic in 1991 after his own HIV diagnosis. He has been an outspoken advocate for HIV/AIDS awareness. It also helps with the educational, health, and social needs of ethnically diverse communities. 
• Holiday Hope: Johnson and his wife have been creative when it comes to giving back. In this event, they help the families in need with a box full of essentials. Johnson said, “Cookie and I have been hosting our Holiday Hope event for almost a decade, and it never gets old.” He further stated, “Today we blessed another 800 families in need this holiday season with a 25-pound box of food, personal care items, and AVON products provided by our great partners at Feed the Children.”
• Grambling University Foundation: Magic Johnson Enterprises donated $500,000 to the foundation in November 2023 at the Kicks Ball Gala. 
• Donation to ASU Students: In June 2024, Johnson donated $75,000 to three ASU students who represented ASU’s Black African Coalition, which helps students of African descent stay united. 

Besides the above-mentioned ones, Johnson has been associated with The Miami Project, Ludacris Foundation, Charity Folks, Keep A Child Alive, and Muhamad Ali Parkinson Center, to name a few.

What’s next for Magic Johnson? 

Magic Johnson is future-ready when it comes to his business acumen. He has recently released his first NFT with Dapper Labs, the first anthropology set in the history of the company. He is already expanding into the metaverse and has invested in a football and basketball team, SimWin Sports.