For three seasons, between 1984 and 1987, Magic Johnson was the highest paid player in the NBA, earning $2.5 million per year with the Lakers, plus an additional $2-$4 million per year in endorsements.
The Los Angeles franchise selected him with the No. 1 pick in the 1979 NBA Draft. Fast forward two years to June 1981, Lakers owner Jerry Buss announced that Johnson had signed a 25-year contract worth $25 million – the most lucrative deal in sports history at the time.
On this day in 1980… a rookie Magic Johnson started at center in place of injured teammate Kareem Abdul-Jabbar, and went off for 42 points and 15 rebounds to lift the Lakers to the NBA title! #NBA75 pic.twitter.com/YodLuMjC0p
— NBA History (@NBAHistory) May 16, 2022
How much money did Magic Johnson earn during his career?
Over the course of his professional playing career, Johnson’s total NBA career earnings were estimated to be around $40 million – dwarfed by what today’s stars earn (LeBron James has racked up $482.5 million, so far…)
In the 28 years after he stepped away from the courts (he retired in 1996), Johnson has managed to earn way more than he ever did as a player with a series of shrewd business ventures.
I am proud that I have such a talented executive team across Magic Johnson Enterprises and some of my portfolio companies including – SodexoMAGIC, Equitrust, Atlanta Life Insurance, JLC Infrastructure, and Unchartered Power! pic.twitter.com/ehcGerKOuw
— Earvin Magic Johnson (@MagicJohnson) January 15, 2024
Magic Johnson started planning for his post-basketball future in the mid-80s
In fact, he was already thinking about his post-NBA life while he was in the peak of his career. In 1987, Johnson established Magic Johnson Enterprises – an investment company which “serves as a catalyst for fostering community and economic empowerment by providing access to high-quality entertainment, products and services that answer the demands of multicultural communities”.
Magic Johnson Enterprises started out by taking over control of Magic Johnson Theatres and 24-Hour Fitness and Sports Health centers. It has expanded to buy stakes in several franchises across a wide range of sports teams such as the LA Dodgers (MLB), Los Angeles Sparks (WNBA), Los Angeles FC (MLS), Washington Commanders (NLF) and more recently, Washington Spirit (NWSL).
His vast empire includes stakes in energy storage (JES) and healthcare, as well as a large real estate portfolio including Starbucks locations.
His entrepreneurial activities have been so successful that today, Magic Johnson’s net worth, according to Forbes, stands at a colossal $1.5 billion.
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