It’s not exactly a secret that professional athletes make a lot of money. It’s common to see these guys earn hundreds of millions of dollars throughout their careers, but only a select few ever make enough money to become a billionaire. Well, one guy managed to recently achieve that feat in former Los Angeles Lakers legend Magic Johnson.
Johnson put together a Hall of Fame career with the Lakers from 1979 to 1996, which saw him become one of the highest paid basketball players in the world during that time. Since then, Johnson has become a shrewd businessman and investor, and that has allowed his net worth to skyrocket to $1.2 billion, joining LeBron James, Michael Jordan, and Tiger Woods as the only professional athletes to amount that sort of cash.
“NBA legend and businessman Earvin ‘Magic’ Johnson is new this year, too, with an estimated net worth of $1.2 billion, thanks to investments in professional sports teams, movie theaters, Starbucks franchises, real estate and healthcare.” – Segun Olakoyenikan, Forbes
How did Magic Johnson make $1 billion?
Johnson initially began making his money during his career in the NBA, as he earned close to $40 million just off his contracts with the Lakers alone. Factor in other sponsorship and endorsement deals, and Johnson was one of the most profitable basketball players during his era in the NBA.
Of course, it would be his investments and business decisions after his retirement from the league that have yielded him the most money. While he became a coach and a front office executive with the Lakers, Johnson really earned his money by making strong investments in the business world that have yielded him quite a bit of money.
Johnson worked on identifying businesses that could be redeveloped in underserved areas in an effort to create profit, and he initially excelled at doing that by partnering with coffeehouse brand Starbucks, and creating his own line of movie theaters called “Magic Johnson Theatres.”
Over time, Johnson would eventually move on to urban real estate investments and working with insurance company Aon Corp. And of course, Johnson is involved in the ownership groups of several professional sports franchises, most notably the Los Angeles Dodgers in the MLB and the Washington Commanders in the NFL.
When you account for all of the successful business ventures Johnson has been a part of, it’s hard to fathom that he is only now becoming a billionaire. In the process, he joins two of the biggest names in the NBA in James and Jordan in the club, and the biggest golfer in the world in Woods.
Considering how Johnson continues to make successful forays into business and profitable investments, it seems like he is here to stay in the billionaire club, and it wouldn’t be a surprise to see his name shoot up the list in the future now that he is a part of the exclusive group.