How Did Magic Johnson Become a Billionaire? Exploring Lakers Legend’s Income and Investments

From earning just $40 million in 15 NBA seasons to creating his own business kingdom worth a billion, Magic Johnson has made a mark for himself over the years. However, it was not an easy path. The 63-year-old NBA legend has made careful choices and the best ones are his investments in sports teams. Apart from these sporting franchises, Johnson has also made some crucial decisions with regard to the food and insurance industries. 

LeBron James, Michael Jordan, and Tiger Woods were the only billionaire athletes until this point. Looks like the list will have a few changes this year. As Johnson has now officially become a billionaire, let’s take a look at his notable investments.

Magic Johnson is the fourth athlete to achieve billionaire status

Magic Johnson is now valued at $1.2 billion by Forbes. According to their list from 2022, LeBron James was the second wealthiest NBA player, after Michael Jordan. There is a good chance that Johnson has secured the second place now. Most of Johnson’s billion-dollar net worth comes from his ownership of sports teams. While the Los Angeles Lakers icon does not own an NBA team, he has invested in franchises belonging to many other leagues. 

The 5x NBA champion’s first-ever sports investment was with the Lakers in 1994, which he eventually sold in 2010. In order to enter the sporting world again as an owner, Johnson bought an ownership stake with Los Angeles FC in 2012. The LA unit is now valued as the wealthiest team in Major League Soccer. 

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Later in 2014, the 3x NBA MVP took a huge risk by becoming the owner of two underperforming teams. One was the Los Angeles Sparks from the WNBA and the other was the Los Angeles Dodgers from the MLB. However, the risk did not go in vain as the Sparks won a championship in 2016 and the Dodgers in 2020, adding more titles to Johnson’s resume.

After a nine-year gap, Johnson set foot into the NFL as a part of investor Josh Harris’ group that purchased the Washington Commanders in July this year. This is the only non-LA team that the 3x Finals MVP holds. Now with four franchises in his hand, Johnson has excelled in managing multiple teams at once.

What are crucial investments by Magic Johnson other than sports teams? 

One of Johnson’s notable investments recently was his entry into the insurance field. Atlanta Life Insurance, which has a name for itself in the American market roped in Johnson to step up their game. 

Other than the above, Johnson has his own restaurant, the ‘Friday’s’ located in Los Angeles. Moreover, the 63-year-old had a tie-up with the world-famous Starbucks that he eventually sold in 2010. What’s to be noted is that he reportedly earned around $100 million with his tie-up. 

Read more: Despite Owning $5.81 Billion LA Franchises, Magic Johnson’s 8YO Venture Lands Him Spot Alongside Michael Jordan

What are your thoughts on this impeccable business kingdom of Magic Johnson? Share your take in the comments below.