Magic Johnson was one of the best-paid athletes in the 1980s, after cashing in a 25-million-dollar contract with the Lakers. Keep in mind, though, that he earned that money for a 25-year contract. It is pretty unbelievable given the fact that today players who are not as talented can make a lot more. The National Basketball Association has come a long way. By the time he ended his career, Magic Johnson had a net worth of 40 million dollars, which helped him start his business empire. He proceeded in buying famous franchises such as Burger King, Starbucks, movie theatres and malls, and even fitness centers. It is a smart move since it helped him gain some more capital for other big investments.
Doing things with passion is the key to success. Magic Johnson knew that and capitalized on it. In 1995, Johnson made the smart decision to buy a stake in the team that he loves, the Lakers. He acquired a 4.5% stake in the company for 10 million dollars, which, 10 years later, paid off since the LA Lakers were worth 607 million dollars, making Johnson’s investment increase to 40 million dollars.
But he didn’t stop there! He branched out, investing in the California-based football team Los Angeles FC. Furthermore, alongside Mark W. Walter, the LA Dodgers owner, he put money into the purchase of the LA Sparks, a WNBA team. From the 2 billion dollar buying price, Johnson put out 50 million dollars of his own money.
Magic Johnson Enterprise, the umbrella company of all of Johnson’s investments, has come a long way. Its mission is the one that has shone since its inception and continues to guide every effort. The company provides high-quality entertainment and services that try to appeal to multiple communities. Besides his many investments, Johnson also ventured into charity, donating to many HIV organizations, and also advocating for better education in this matter. In 2017, Magic invested in the rehabilitation of the iconic LaGuardia airport.
Moreover, another venture for Magic Johnson Enterprise that needs mentioning is its investment in technology, with the purpose of improving people's lives.
Magic Johnson is an inspiring person. He has accomplished so much both in court and outside of court. But what can we learn from him? First of all, it’s important to invest in things that we are the most knowledgeable and passionate about. That doesn’t mean that every investment in an industry that you love might be a smart one, so the second lesson is to diversify your portfolio and experiment with different products and services. Furthermore, give back to the community! Don’t forget about the people who help you become the person that you are today. Remember, Magic Johnson believed that you become successful when you can make others successful!
As a successful entrepreneur and great human being, Magic Johnson truly showed how business is done with heart. Even though we do not have the same capital to start investing, with the right mindset, hard work, and dedication, our dreams can come true.
