Magic Johnson (real name Earvin Johnson Jr.), 66, is one of the greatest NBA players of all time and the fourth sports star to join the billionaire club, following basketball legends Michael Jordan and LeBron James, and golfer Tiger Woods.
In July, Forbes reported that Johnson’s net worth has reached US$1.5 billion, most of which were not from his basketball career, but from his business ventures.
Johnson earned a total of $40 million during his time with the Los Angeles Lakers, primarily in the 1980s. Even at his peak, he earned only $2–4 million annually from endorsement deals. Over his 13-season career, he won five NBA championships (1980, 1982, 1985, 1987 and 1988), earned three MVP titles (1987, 1989 and 1990), and was named in the All-Star Team 12 times. He also claimed three NBA Finals MVP awards (1980, 1982 and 1987). In 2002, Johnson was inducted into the Naismith Memorial Basketball Hall of Fame.
Magic Johnson at an event for entrepreneurs on May 2, 2025. Photo by Instagram/@magicjohnson
“Winning Time”, an HBO series about Showtime, the most glorious era of the Lakers, highlighted what is often called the “mistake of a lifetime”, as Johnson declined Nike’s monumental offer. Instead of accepting 100,000 shares and a $1 commission per pair of shoes sold, he chose Converse. Marca reported that had Johnson picked Nike, he could have made $5.2 billion, given how the stock has surged over time.
Despite missing out on that golden opportunity, Johnson still rose to billionaire status thanks to his “miraculous capital management strategy,” according to Marca, which reported that he sought advice early on from business experts, including Michael Ovitz, one of Hollywood’s most powerful figures, known for working with stars like Steven Spielberg, Tom Cruise, Dustin Hoffman, Sylvester Stallone, Barbra Streisand and Kevin Costner.
In 1987, Johnson founded Magic Johnson Enterprises (MJE), aiming to create a multi-industry empire focused on three core areas: owning or partnering with major brands, investing in high-growth companies and developing services for minority communities.
He began by purchasing a Pepsi bottling factory and launching hundreds of distribution outlets. He also invested in 100 Starbucks franchises and helped revive movie theaters in underprivileged Los Angeles neighborhoods. These early moves helped him gain both capital and business experience.
Johnson later expanded into health care and other sectors by investing in 24 Hour Fitness, Burger King, T.G.I. Friday’s and food service company Sodexo Magic. His other notable ventures include Atlanta Life, an insurance firm; Team Liquid, an esports organization; Skydio, which specializes in drone technology; Starco, focused on consumer product innovation; Johnson Energy Storage, a sustainable energy initiative; ShotTracker, a real-time basketball statistics and tracking system; Uncharted, which develops smart infrastructure and MJE Loop Capital Partners, an investment management firm.
According to Forbes, Johnson’s biggest income source is his 60% ownership of life insurance company EquiTrust, whose assets have grown from $16 billion to $27 billion since he took over in 2015. He also co-founded JLC Infrastructure with Ferrovial chairman Rafael del Pino Calvo-Sotelo, helping lay the foundation for a new JFK Airport terminal in New York, set to open in 2030.
Magic Johnson and his wife Cookie on the luxury yacht during their summer vacation this year. Photo by Instagram/@magicjohnson
Johnson has also invested in sports franchises. In 2012, he acquired a 2.3% stake in baseball team LA Dodgers when TWG purchased the near-bankrupt MLB team for $2 billion. That stake is now worth 10 times its original value. He also owns shares in football club LAFC (MLS), basketball club Los Angeles Sparks (WNBA), American football club Washington Commanders (NFL) and recently the Washington Spirit (NWSL).
Johnson is also active in supporting the community. After the Covid-19 pandemic, he allocated $100 million to support small businesses owned by minorities and women. In partnership with EquiTrust, he supported Atlanta Life Insurance, the last remaining Black-founded insurance company. He also collaborated with basketball star Angel Reese to launch a financial education program for high school girls.
At 66, Johnson continues to live with HIV, a condition he once feared would be fatal when he retired from the NBA in 1991. Thanks to modern medicine and consistent treatment, he remains healthy and is an active advocate for HIV/AIDS awareness.
This summer, Johnson spent most of his time with family on a luxurious 95 m yacht worth $200 million. He rented it from Eric Schmidt, former Google chairman, for $6 million a month. According to Marca, the yacht includes a 12-seat cinema, pool, sauna, gym, jacuzzi and 42 video screens. As he cruised through Europe, Johnson said that he was happy to enjoy quality time with his wife, children and grandchildren.