- The 64-year-old former Lakers guard’s net worth is estimated at $1.2 billion
- Magic once owned a 4.5 percent stake in the Lakers before selling it in 2010
- DailyMail.com provides the latest international sports news
Magic Johnson has been declared the fourth athlete to ever become a billionaire, joining fellow NBA superstars Michael Jordan and LeBron James and golfer Tiger Woods on the list.
According to several media outlets, the 64-year-old former LA Lakers guard is said to have an estimated net worth of around $1.2 billion this year. In his 13-year career with the Lakers, he earned just $40 million total, compared to $480 million for LeBron and $94 million for Jordan.
Magic’s net worth has grown exponentially since his retirement in 1996. His investments outside of basketball paid off, ultimately paving the way for the five-time NBA champion to become a member of the ten-figure club.
Magic’s 60 percent stake in an Iowa-based life insurance company called EquiTrust, which he acquired in 2015, has made a lot of money over the years.
Additionally, it is the largest asset in Magic Johnson Enterprises’ portfolio. Since taking control, Magic has increased the company’s total assets from $16 billion to $26 billion, with annual revenue reported to be around $2.6 billion Forbes.
Magic Johnson, 64, is the third NBA player to become a businessman with a ten-figure net worth
Johnson’s investments outside of basketball have paid off over the years
“He was born with this special talent; “He’s had it since the beginning of his career,” Mandalay Entertainment CEO Peter Guber, who has invested with Magic in several ventures including the LA Dodgers, told the outlet.
“If I could know exactly what it was, I would bottle it and give it to myself and everyone in my company.”
Magic is a major player in the entertainment industry, particularly when it comes to movie theaters, fast food franchises, real estate, healthcare and life insurance.
He has an established partnership with Starbucks that allows him to own more than 100 coffee shops in predominantly black neighborhoods in major U.S. cities across the country.
Magic also owns an additional minority interest in a PepsiCo bottling plant outside of Washington DC
Johnson (C) most recently became a minority owner of the NFL’s Washington Commanders
The three-time NBA MVP bought a 4.5 percent stake in the Lakers for $10 million in 1994 before selling it to healthcare billionaire Patrick Soon Shiong in 2010. Forbes estimates Magic’s stake would have been worth $29 million. However, had he still invested in the purple and gold, his share of the team would be worth over $265 million today due to the increase in value of NBA teams.
Johnson also had the opportunity to invest in the Golden State Warriors in 2010, but turned down the opportunity due to his loyalty to the Lakers.
In addition to the Dodgers, Magic is also part owner of a number of other professional sports teams. He also oversees the LA Sparks of the WNBA and the LAFC of the MLS. He recently teamed up with Josh Harris to become minority owner of the NFL’s Washington Commanders this year.
“We all owe Magic,” Shaquille O’Neal once said of the former basketball player’s business acumen.