Forbes recently declared former basketball star Magic Johnson a billionaire, an exclusive club with only three other athletes: NBA players Michael Jordan and LeBron James, and golfer Tiger Woods.
According to the business magazine, Johnson’s wealth is estimated at around $1.2 billion (£990m). Forbes attributes a significant portion of his wealth to his stake in a life insurance company, in addition to his diverse portfolio of investments in various companies and ownership stakes in different sports teams.
Although Johnson had a remarkable NBA career, retiring in 1996 after leaving an indelible mark on the league, it’s his ventures beyond sports that have been the primary source of his wealth.
Reportedly, Magic Johnson earned $40 million during his NBA tenure, but it’s his investments and ownership stakes that have substantially contributed to his billionaire status. His ownership stakes extend to three Los Angeles-based sports teams, including the MLB’s Los Angeles Dodgers.
Beyond the sports domain, Johnson’s financial ventures include investments in companies like Starbucks, Burger King, 24 Hour Fitness, and EquiTrust, a life insurance company.
In a podcast earlier this year, Johnson revealed that he could have achieved billionaire status earlier had he accepted shares in Nike during the 1970s when he entered the NBA. Regrettably, he opted for a deal with Converse, which offered $100,000 annually.
Reflecting on his past decisions, Johnson acknowledged his lack of familiarity with stocks due to his non-affluent background, expressing regret for passing on the stock opportunity offered by Nike.