Saad Ullah
Basketball legend Earvin "Magic" Johnson has turned his sports success into some serious money, with his net worth sitting at around $1.5 billion in 2025. The former Los Angeles Lakers star's path from scrubbing floors to becoming a billionaire is honestly one of the best business stories you'll ever hear from the sports world.
Magic Johnson's Early Days and His First Paycheck
Way before he was a basketball superstar, young Earvin got his first real job as a teenager in Lansing, Michigan, cleaning a seven-floor office building. He'd clean the first six floors like he was supposed to, but when he got to the seventh floor where the big boss had his office, he'd sneak in and pretend to be the CEO, kicking his feet up on the desk. Looking back, he'd say he might've grown up poor, but his dreams sure weren't.
After wrapping up at Michigan State, Johnson landed a five-year rookie deal worth $2.3 million, which worked out to about $460,000 a year. That was huge money for a new guy back then. His NBA career kicked off in 1979 when the Lakers grabbed him with the first pick in the draft, and he didn't waste any time - winning both the championship and Finals MVP in his very first season.
When Magic Johnson Really Hit His Stride
In 1981, Johnson signed this crazy 25-year, $25 million deal with the Lakers that was literally the biggest and longest contract in all of sports at that time. It paid him a million bucks every year and was set up to keep him around even after he stopped playing. Throughout his 13 years in the NBA, Johnson pulled in around $40 million between salary and endorsements - though that's basically pocket change compared to what he's worth now.
During the mid-to-late 1980s when he was absolutely dominating, Johnson helped the Lakers win five championships and grabbed three MVP awards for himself. All that winning meant big endorsement checks from major brands, and he was making somewhere between $2 million and $4 million a year just from those deals when he was at the top of his game.
How Magic Johnson Built His Billion-Dollar Fortune
Here's where things get really interesting with Magic Johnson's net worth. The real money came after he left basketball. Back in 1987, Johnson started Magic Johnson Enterprises, basically an investment firm focused on bringing quality stuff to diverse and underserved communities. His move with Starbucks in 1995 was a game-changer - he got the rights to run 125 stores, and when he sold out in 2010, he walked away with $100 million.
These days, Magic Johnson Enterprises has its hands in everything - movie theaters, real estate, life insurance, sports teams, you name it. He's got a 60% piece of EquiTrust Life Insurance Company, which handles over $26 billion in assets. Plus, he owns chunks of several big-time sports franchises like the Los Angeles Dodgers, Washington Commanders, Los Angeles Sparks, and LA Football Club.
What Magic Johnson's Actually Worth Today
Right now, Magic Johnson's net worth is sitting at about $1.5 billion as of 2025, though you'll see some reports saying anywhere from $800 million to $1.6 billion. Forbes put him on their celebrity billionaires list, pointing out how he made smart moves buying into teams like the Dodgers and Commanders, and especially EquiTrust, where he helped grow their assets from $16 billion to $26 billion in just eight years.
That makes him the second-richest former NBA player, right behind Michael Jordan. And get this - his business moves have made him way more money than basketball ever did. That $40 million he earned playing ball? It's nothing compared to what his businesses have brought in. He's still out there growing his empire while also putting serious money into helping communities and charitable causes.
Magic's Blueprint for Making It Big
Over the years, Johnson's shared the lessons that helped him go from athlete to business mogul. Early on, he met with this powerful executive Michael Ovitz who basically told him straight up: if you wanna do business, stop reading the sports section first and start reading the business pages. That willingness to learn and check his ego at the door became everything for his success.
Johnson's always saying that when you're a successful business person, you're only as good as your team. No one can do every deal alone. He's huge on doing your homework—really understanding what customers want and what the market needs before jumping into anything. His advice to young people trying to make it? Have a solid three-year plan and find someone who'll keep you honest and accountable.
Johnson's whole approach comes down to not giving up: you just have to keep knocking down doors, keep being aggressive, and even if somebody says "no," then you knock on the next door. He's all about using every connection you've got and keeping people around who actually believe in you and push you to be better. But bottom line? He'll tell you there's no substitute for hard work and staying dedicated—whether you're on the court or in the boardroom.
What really sets him apart is how he's always focused on helping underserved neighborhoods, proving you can make money and do good at the same time. That mix of smart investing, caring about communities, and just outworking everybody else has made Magic Johnson one of the best examples ever of an athlete who crushed it in business after sports.
Saad Ullah
