Forbes has officially declared former basketball star Magic Johnson a billionaire, making him the fourth athlete to achieve this status.
According to the business magazine, Magic Johnson’s wealth is estimated at about $1.2 billion (£990 million). He joins the ranks of NBA players Michael Jordan and LeBron James, as well as golfer Tiger Woods, in this exclusive club.
Source of Wealth
According to Forbes, Johnson’s wealth comes from his investments in various companies and ownership stakes in several sports teams. Majority of his wealth is however held in a life insurance company. Despite his iconic NBA career, which earned him $40 million, Johnson’s significant earnings came from ventures outside of sports.
The 64-year-old retired from NBA in 1996 but continued his success through ownership stakes in three Los Angeles-based sports teams, including MLB’s Los Angeles Dodgers. He also invested in major companies such as Starbucks, Burger King, 24 Hour Fitness, and the life insurance company EquiTrust.
Magic Johnson’s One Regret
Reflecting on his journey to wealth, Johnson shared, “My family didn’t come from money, that’s one thing that hurt us sometimes. When you don’t come from money, you don’t know. I didn’t even know what stocks [were] at that time.” He revealed in an interview on the All The Smoke podcast that he turned down shares in Nike during the 1970s, opting for a deal with Converse instead, which offered him $100,000 a year. He added, “So I passed on the stocks. Can you imagine? 45 years, $5 billion that stock would have been worth today.”
