Get All Access for $5/mo

Magic Johnson Is Officially a Billionaire — Here's How the Lakers Legend Made His Money Forbes estimates that Johnson's net worth is now an estimated $1.2 billion.

By Emily Rella

Key Takeaways

  • Magic Johnson is the fourth athlete to become a billionaire alongside Tiger Woods, LeBron James, and Michael Jordan.
  • Johnson has invested in several companies including Starbucks, Loew's movie theaters, Burger King, and 24 Hour Fitness.
  • He also is a minority stakeowner in several sports teams.

Basketball legend Earvin "Magic" Johnson is officially a billionaire.

Johnson, 64, is now worth an estimated $1.2 billion thanks to a lucrative career in the professional sports arena, including stakes in multiple sports teams, per Forbes.

The retired athlete is a minority stakeowner in the Washington Commanders (NFL), the Los Angeles Sparks (WNBA), Los Angeles Dodgers (MLB), and the LAFC (MLS).

Johnson played for the Lakers for 12 seasons before he famously retired in 1991 after publicly disclosing that he had been diagnosed with HIV. He then returned to the Lakers for one more season in 1995 and then retired a final time following that season in 1996. He has been a long-time activist and advocate for the prevention of the disease.

Magic Johnson attends The Elizabeth Taylor Ball to End AIDS at The Beverly Hills Hotel (Getty Images)

Roughly $40 million of Johnson's net worth comes from playing in the NBA, but the majority of his earnings come from his 2015 purchase of EquiTrust, a life insurance company that he currently owns a 60% stake in.

Related: 5 Lessons on Success From Magic Johnson

Forbes reported that the company is now estimated to be worth $26 billion and generates $2.6 billion in annual revenue.

Johnson has also made other lucrative investments and generated business through his investment company Magic Johnson Enterprises, including a slew of Loew's movie theaters and Starbucks cafes that he's opened in predominantly black neighborhoods, as well as investments in Burger King and 24 Hour Fitness locations.

"Retail has made a mistake in thinking they couldn't make money in the Black community," Johnson told the New York Times in 2021 about his business endeavors. "And sure enough, we proved that wrong with the Magic Johnson Theatres. We proved it wrong with the Starbucks. That's why you see big retailers going into urban America more now than ever because they know they can get a return on investment."

Related: Magic Johnson: The Businessman Behind the Basketball Legend

Johnson is now the fourth professional athlete to join the billionaire club, alongside Tiger Woods, LeBron James, and Michael Jordan.

Emily Rella

Entrepreneur Staff

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Business News

Homeowners in These 10 States Pay the Most in 'Hidden' Upkeep Costs

Hidden home costs pile on top of mortgage payments.

Growing a Business

5 Books to Help You Motivate, Unify and Build Perspective

In a post-Covid world, check out these must-read books to help build a more resilient organization, create a modern work culture and maintain a powerful growth mindset.

Money & Finance

Avoid These 10 Mistakes Entrepreneurs Make with Money

Despite the challenging statistic that only 5% of startups survive beyond five years, common financial pitfalls often contribute to their failure. Through personal observation, I've identified the prevalent financial mistakes made by entrepreneurs.

Growing a Business

How Visionary Leaders Transform Curiosity Into Groundbreaking Ideas

Lee Brian Schrager, founder of the South Beach Wine & Food Festival, discusses the spark that launched FoodieCon, his best practices for running popular food events, and why all business owners need to adapt to social media trends.

Making a Change

Learn All of Rosetta Stone's Languages for $152

A lifetime subscription is nearly $250 off for a limited time.