Magic's Johnson Net Worth, And How He Earns And Spends It

Highlights

• Magic Johnson's net worth is estimated to be $1.2 billion, thanks to his successful business empire built through investments and partnerships with companies like Starbucks, Best Buy, and Sony.
• Johnson's financial success was not solely built through endorsements, but rather through early investments in promising companies such as Starbucks, where he bought a franchise and later sold his shares for an estimated $100 million.
• Johnson's dedication to acts of charity, particularly in the areas of HIV/AIDS campaigning and uplifting minority communities, remains a priority for him despite his financial success.

Following a highly successful $18 million basketball career spanning 13 years, Magic Johnson (Earvin Johnson) utilized his drive and drive to build an impressive business empire.

Currently, Magic Johnson's net worth is estimated to be $1.2 billion. He invested early in promising companies such as Starbucks, obtaining shares that later sold for $100 million.

Magic Johnson Enterprises generates approximately $700 million in sales through partnerships and investments in businesses such as Best Buy and Sony.

Nonetheless, he takes pride in actual ownership and operational control rather than merely sponsorships.

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Johnson is still dedicated to acts of charity, from HIV/AIDS campaigning to uplifting minority communities.

Join us as we explore how Magic Johnson earns and spends his riches.

Earns: Basketball Career (13 Years In The NBA)

Magic Johnson became an NBA icon throughout his 13 seasons with the Lakers.

Despite having a significant influence due to his flexibility and court vision, Johnson's career earnings were estimated to have been around $18 million.

But he was highly successful, leading Los Angeles's flamboyant and fast-paced "Showtime" era to three MVPs and five championships. After contracting HIV and having to retire early in 1991, Johnson amassed a stellar career in under ten years.

He is still regarded as one of the best playmakers in basketball because of his legendary plays on the floor during the Lakers' era, and for his lasting influence off the court.

Spends: Real Estate

Johnson owns opulent personal properties, his primary home being an eight-bedroom Tuscan-style mansion spanning 13,000 square feet in the highly sought-after Beverly Park enclave of Beverly Hills.

He paid over $7.5 million for the opulent house in the early 2000s, enticed by Beverly Park's upscale features, including round-the-clock monitored protection.

The location offers a guesthouse, a tennis court, and a cabana pool. Johnson's love of entertaining friends and parties impacted his decision to buy luxurious homes.

The house is close to mega-homes owned by celebrities such as Sofía Vergara and Mark Wahlberg.

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Earns: Starbucks Franchise Investments

One of the most profitable investment deals that Johnson made was to buy a Starbucks franchise at a very early stage – in 1998, to be exact.

In 2023, Tasting Table described Johnson's history with Starbucks before it was the brand it is today:

"As the Seattle-based chain was first starting to experience massive growth in the 1990s, moving from a few hundred stores to over 2,000, Starbucks notes it did not have a presence in underserved, urban communities. That is until former Los Angeles Lakers star and NBA MVP Earvin "Magic" Johnson approached then-CEO Howard Schultz with a business proposal in 1998.

"Johnson had been retired from basketball for several years due to his battle with HIV and had been focusing on business investments and philanthropic work, and NBC News reports he approached Schultz with a plan to bring Starbucks stores to inner city neighborhoods.

"As Johnson tells it, Schultz was initially unconvinced until the future hall-of-famer brought him to a movie screening at one of the inner city movie theaters his company, Magic Johnson Enterprises, had opened.

"Apparently convinced that Johnson understood the market they would be entering, Starbucks went into business with the basketball legend, whose company's partnership eventually led to the construction of 125 cafés ..."

The value of Johnson's franchise rights increased rapidly, alongside Starbucks' rapid growth in the 1990s.

He also invested in Starbucks stock ($SBUX), selling his shares for an estimated $100 million.

Johnson did not build his business empire through endorsements because he identified brands like Starbucks poised for monstrous growth and seized those early equity opportunities.

Spends: Family And Lifestyle

Family is essential to Magic Johnson.

He sets aside money to live well and create enduring memories for his family, including paying for his children's schooling, taking trips, entertaining friends and events, maintaining his house, and taking advantage of upscale services.

However, he manages his expenditures by investing his earnings from his enterprises and career, saving, and adhering to a responsible budget that he has had since he was a small child.

Johnson's money mastery is well-documented, and his colleagues have long attested to his level-headed approach to wealth.

In 2012, Kareem Abdul-Jabbar authored an article for ESPN ("Magic Johnson and money matters,") writing:

"Magic was able to reach [his level of financial power because he always kept his eyes on that specific goal. While he was still playing for the Lakers, he made a deal that nailed down a percentage of the club ownership. This asset grew and grew as the value of the franchise grew; and when he sold it, it was a nice payoff.

"Magic also parlayed his fame as an athlete as a way to open the doors to alliances with established business entities who were thrilled to be involved with him in ventures of many different stripes. For the past 20 years, the cumulative success of Magic's business empire has grown to its present state.​​​​​​"

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Abdul-Jabbar is not the only basketball legend who has gone on record to say Magic Johnson changed his financial future.

In October 2020, CNBC published a piece entitled "Shaquille O’Neal says Magic Johnson gave him the best money advice when he first joined the Lakers."

Like Abdul-Jabbar, O'Neal credited Johnson with placing him on a better financial path:

"Even after O’Neal signed a $40 million contract with the Orlando Magic in 1992, he still didn’t have financial or business acumen. O’Neal, 48, told John that [it] wasn’t until he signed with Los Angeles Lakers in 1996 that he got the best money advice ever from Magic Johnson.

"'When I first got to L.A., [Johnson] said 'Shaq, it’s okay to be famous and all that but at some point, you want to start owning things,' O’Neal said."

Earns: Movie Theater Investments

Johnson expanded his company's portfolio in the 1990s by incorporating movie theaters, realizing the film industry's considerable promise despite the rise of cable television.

He founded the Magic Johnson Theater network, which grew to 15 theaters, offering entertainment hubs in neglected urban communities while making significant profits.

Johnson sold the business to Loews Cineplex in 2004 for $100 million in cash, collecting a fifty-fold return on his initial $2 million investment a decade earlier.

This highlighted Johnson's keen eye for value and patient investing skills in the entertainment, real estate, food, and retail industries.

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Spends: Los Angeles Dodgers Ownership

Johnson was one of several investors who bought the Los Angeles Dodgers in 2012 for an incredible $2 billion, the highest price ever paid for a professional sports franchise.

At first, he reportedly held four percent of the team, but he subsequently sold back over half of that ownership.

Johnson participated in recruiting elite talent and renovating Dodger Stadium to improve the experience for players, fans, and his co-owners.

Johnson routinely attends games.

Earns: Magic Johnson Enterprises

In 1987, Johnson incorporated his business – Magic Johnson Enterprises – as the parent company managing his diverse investments.

Magic Johnson Enterprises quickly grew into one of the largest Black-owned conglomerates.

Today, Magic Johnson Enterprises drives over $700 million in annual revenues through its partnerships with companies like Best Buy, Starbucks, Sony Pictures, and others.

While Johnson handles endorsement deals, he prides himself on operational ownership in deals structured around his acquisition of substantive equity stakes, rather than just slapping his name on things.

Magic's ownership mindset and business-building focus have been critical to the growth of his empire.

Spends: Travel And Personal Staff

The extensive business portfolio Johnson oversees and his additional sports and entertainment obligations require regular travel and support staff.

With homes and business partnerships spanning cities like Los Angeles, New York, and Dana Point, Johnson – like other celebrities –funds substantial annual costs for private air travel to manage this coast-to-coast lifestyle.

Additionally, he employs a full-time team, including a business manager, accountant, assistants, household staff, and almost certainly security staff.

While these ongoing, non-trivial expenses enable Johnson's active schedule and success across industries, his diligent financial discipline likely avoids excessive or frivolous spending in these areas.

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Earns: Brand Partnerships

Johnson formed strategic alliances with prominent mainstream brands like Sony and Best Buy to deliver products and services to neglected urban populations.

He bought shares in both firms and opened over 100 Sony Magic Johnson theaters and twelve inner-city Best Buy outlets. These collaborations served as trial grounds for expanding companies into emerging populations and territories.

Johnson's equity and operational participation also allowed him to ensure that minority groups and causes received assistance.

Johnson took delight in breaking obstacles alongside friends and partners such as Howard Schultz of Starbucks and the late Dick Schulze of Best Buy.

Spends: Charitable Endeavors And Philanthropy

Since disclosing his HIV status in 1991, Johnson has made significant contributions to HIV/AIDS campaigning, prevention, and support for at-risk groups.

His Magic Johnson Foundation, which focuses on these issues, has donated over $25 million to various groups.

Aside from the foundation, Johnson has generously supported scholarships, after-school programs, food banks, and other community groups in cities such as Los Angeles, Detroit, and New York, where he has personal connections.

Johnson has long matched his corporate ambition with giving back, whether through direct aid or organizing public-private partnerships aimed at minority groups.

In October, Magic Johnson's net worth officially crossed the billion-dollar mark (per Forbes magazine), and his fortune is likely to continue growing due to his diversification and adept handling of assets and investments.

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