How Magic Johnson Achieved a Net Worth of $600 Million and Became a Business Powerhouse

The Los Angeles Lakers are known as a basketball powerhouse in the NBA, having produced several superstars who dominated the league during their time at the team. Just as well, they are known for having some of the wealthiest basketball players in history on its list, one of which is Magic Johnson, who has a net worth of $600 million.

Magic Johnson, during his career, was one of the best players to ever grace the court and despite retiring from the court for decades, his reputation has remained intact, adding another to it as a successful businessman. Through his business acumen, he has been able to amass his large net worth and we dive into the details of the former Lakers’ wealth below. Check it out by scrolling below.

How Magic Johnson Achieved His $600 Net Worth

Like most basketball players, the foundation of Magic Johnson’s net worth came via his time in the NBA. He earned a total of $25 million in salary during his active career as a player. During this time as a player, he solidified his legendary status by winning five NBA championships along with other honors like winning the NBA finals MVP three times, the NBA MVP award thrice, and NBA All-Star twelve times, among several other awards.

Before he retired from the NBA, Magic Johnson started his company, Magic Johnson Enterprises in 1987, the company which is now worth over a billion dollars today. During his playing days, his close relationship helped him with some of his major investments such as a 4% stake in the Los Angeles Lakers he acquired for $10 million. Through Magic Johnson Enterprises, he dabbled into various investment moves and career paths that grew his net worth.

His first major investment after buying the stake in LA Lakers was the high-end sporting goods company, Magic 32. The company failed and Magic lost his $200 thousand investment. Lessons from the business’ failure led him to other businesses like partnering with Starbucks to open coffee chains in urban communities. His partnership with Starbucks had him own 125 Starbucks stores across Harlem, Detroit, and Washington DC. He owned the franchise stores for twelve years before he sold it back to the company in a lucrative deal.

Aside from his Starbucks investment, Magic Johnson also grew his net worth via investments in real estate, owning a string of buildings in urban areas. He was also part of a deal that bought the Williamsburgh Savings Bank Tower for $71 million, converting it into a residential building. Other business interests of Magic include EquiTrust Life Insurance Company and aXiomatic eSports.

READ   The 25 Richest Comedians In The World And Their Net Worth 2020

Magic Johnson is majorly known to have built his net worth through a portfolio of investments in sports franchises and aside from his first investment in the LA Lakers, which he bought for $10 million and sold for $50 million in 2010, he also co-owns the Los Angeles Dodgers, and was once a co-owner of the Class-A minor league baseball team Dayton Dragons. He sold his stake in the franchise in 2014.

Other sports franchises owned by Magic Johnson which have contributed to his net worth include the WNBA team, Los Angeles Sparks and the soccer team, Los Angeles Football Club. Aside from sports, Magic’s sprawling investment portfolio included a promotional company – Magic Johnson Productions, and a national chain of movie theaters – Magic Johnson Theaters, all of which are subsidiaries under his umbrella company, Magic Johnson Enterprises. He has since sold his theatre chain business to Loews Cineplex Entertainment.

See Also: 10 Richest NBA Players In The World Right Now And Their Net Worth

How Does He Spend His Money?

Magic Johnson net worth
Magic with his family

Magic Johnson owns a mansion in Beverly Hills and he has a fleet of cars that include luxurious brands like BMW, Ferrari. He also owns a private jet. Aside from his luxurious expenses, the former basketball star has also built a reputation for using his net worth to give back to minorities and the economically-challenged.

Some of his efforts include the Magic Card, a pre-paid MasterCard which is designed to help low-income people save money and shop online. He also created a contract food service, Sodexo-Magic in partnership with Sodexo USA.

Famously known for his HIV status, Magic Johnson, whose net worth places him as one of the most successful black businessmen in America, has a foundation; the Magic Johnson Foundation which is focused on HIV/AIDs awareness and helping victims access treatments. Other charities and foundations he spends on include Keep a Child Alive, Buoniconti Find to Cure Paralysis, The Miami Project and a few others.

Adeola Seun
Adeola Seun
Seun is a CCNA certified graduate of FUTA. He has been writing on various subjects that include finance, economics, celebrity net worth, lifestyle, biographies and politics for over 7 years, Other than writing, he enjoys movies, video games, and sports


The 20 Most Expensive Buildings In The World Right Now (2020 Updated)

Year in year out, magnificent buildings are erected somewhere in the world. But some are so incredible that they are considered landmarks, some of...

Master P – Net Worth in 2020, Family & Wife or Girlfriend

What is Master P's net worth? One of the pioneers of rap music in America is Master P. He is the current CEO and president...

Mark Zuckerberg – Family, Net Worth & Car Collection

Mark Zuckerberg is an American billionaire, computer programmer, and entrepreneur. He is most popular for being the co-founder, president, and CEO of Facebook. Find...

French Montana – Net Worth in 2020, Height & Family

What is French Montana's net worth? American hip-hop artist, French Montana has been able to attain the millionaire status estimated to be in the tune...

Adam Sandler – Net Worth in 2020, Wife & Family Members

What is Adam Sandler's net worth? Adam Sandler is a comedian, film producer, actor, screenwriter, and musician. He is said to be one of the...

Jerry Seinfeld – Net Worth in 2020, Wife and Children

Who said standup comedy doesn’t pay? Jerry Seinfeld's net worth clearly shows that people will pay a lot of money to laugh. The comedian...

The 25 Richest Comedians In The World And Their Net Worth 2020

As the saying goes, laughter is the best medicine. But the other side of that equation is that laughter can also be very lucrative....

More From Justrichest

Inside Jay Leno’s Massive Car Collection, Net Worth & Family Life

Jay Leno is without doubt, one of the finest and most mature entertainers America has ever produced. A multiple award-winning stand-up comedian, writer, TV...

12 Biggest and Most Expensive Homes of Extravagant Footballers In 2020

The huge and decent earnings of footballers grant them the audacity to exemplify lavish spending and also enable them to sustain every aspect of...

Jessica Nigri Net Worth: How Much Money Does The Cosplayer Make?

Jessica Nigri is a well-known American cosplayer. For the benefit of those who don’t know, Cosplay is derived from the words costume and play....

20 Strongest and Most Powerful Currencies in The World (Updated 2020)

According to World Atlas, there are 180 currencies in circulation that are recognized by the United Nations across the wide world and these are...

Featured Today

These 5 Facts Will Tell You All About Guraish Aldjufrie and What He Does For A Living

A truly industrious and really shrewd man, Guraish Aldjufrie is known for being the ex-husband of Kyle Richards. For the record, Kyle Richards is...

What Is Wrong With Barron Trump, Is He Really Autistic? Where Is He Now?

Autism is prevalent and can affect people of all ethnic, racial and socioeconomic groups. The disorder, which limits a person's ability to relate and...

Who is Zack Snyder’s Daughter Autumn Snyder and Why Did She Commit Suicide?

It could be hard to understand why someone would ever take their own life; leaving their family and loved ones to suffer in a...

Who Is Sandra Otterson? Her Personal Wealth, Life and Quick Facts

American adult star, Sandra Otterson, currently based in Arizona, USA has is worth about $5 million. Background and Career Sandra Otterson, popular with the name ‘Wifey‘...

Top 10 Richest Male Porn Stars In The World

What could be better than passing time other than watching an adult movie on your television, computer, or anywhere? Sex has something to do...

Related Stories