NBA icon Magic Johnson is named a BILLIONAIRE by Forbes… becoming the fourth sports star to reach the 10-figure mark, following LeBron James, Tiger Woods and Michael Jordan

  • The 64-year-old former Lakers guard’s net worth is estimated at $1.2 billion
  • Magic once owned a 4.5 percent stake in the Lakers before selling it in 2010
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Magic Johnson has been named the fourth athlete to ever become a billionaire, joining fellow NBA superstars Michael Jordan and LeBron James on the list, as well as golfer Tiger Woods.

According to multiple media outlets, the 64-year-old former LA Lakers guard is believed to have an estimated net worth of around $1.2 billion this year. He earned just $40 million total in a 13-year career with the Lakers, compared to LeBron’s $480 million and Jordan’s $94 million.

Magic’s wealth has grown exponentially since he retired in 1996. His investments outside of basketball paid off, ultimately paving the way for the five-time NBA champion to join the ten-figure club.

Magic’s 60 percent stake in an Iowa-based life insurance company called EquiTrust, which he bought in 2015, is what has made the big money over the years.

Moreover, this is the biggest asset in Magic Johnson Enterprises’ portfolio. Since taking control, Magic has grown the company’s total assets from $16 billion to $26 billion, with annual revenue hovering around $2.6 billion. Forbes.

Magic Johnson, 64, is the third NBA player to become a businessman with a 10-figure net worth

Johnson's investments outside of basketball are what have paid off over the years

Johnson’s investments outside of basketball are what have paid off over the years

‘He was born with that special talent; He’s had it since the beginning of his career,” Mandalay Entertainment CEO Peter Guber, who has invested with Magic in multiple ventures including the LA Dodgers, told the outlet.

“If I could know exactly what it was, I would put it in a bottle and give it to myself and everyone in my company.”

Magic is a major player in the entertainment industry, especially when it comes to movie theaters, fast food franchises, real estate, healthcare and life insurance.

He has an established partnership with Starbucks, which gives him ownership of more than 100 coffee shops in predominantly Black neighborhoods in major American cities across the country.

Magic also has an additional minority stake in a PepsiCo bottling plant outside Washington DC

Johnson (C) recently became a minority owner of the NFL's Washington Commanders

Johnson (C) recently became a minority owner of the NFL’s Washington Commanders

The three-time NBA MVP bought a 4.5 percent stake in the Lakers for $10 million in 1994 before selling it to healthcare billionaire Patrick Soon Shiong in 2010. Forbes estimates that Magic’s stock would have been worth $29 million. However, if he had still invested in the Purple and Gold, his stake in the team would be worth more than $265 million today, due to the appreciation of NBA teams.

Johnson also had the opportunity to invest in the Golden State Warriors in 2010, but turned down the opportunity due to his loyalty to the Lakers.

Magic also partially owns a number of professional sports teams other than the Dodgers. He also watches over the LA Sparks of the WNBA and the LAFC of the MLS. He recently teamed up with Josh Harris to become a minority owner of the NFL’s Washington Commanders this year.

“We all owe magic,” Shaquille O’Neal once said of the former basketball player’s business acumen.