The Los Angeles Lakers’ legendary point guard became one of the most recognizable players in the world, thanks to his charisma and on-court brilliance. And in his prime, he made more money than just about anyone in the basketball world.
Drafted in 1979, Johnson and then-owner Jerry Buss built a dynasty that reshaped the NBA. Buss’ entire vision for the Lakers centered around Magic. Here’s a look at how much Johnson earned during his playing days — and how he turned that into millions more.
Magic Johnson’s Eye-Opening Contract Details Explored
According to Spotrac, Johnson signed a five-year, $2.3 million rookie deal after leaving Michigan State. That worked out to an average of $460,000 per year — a massive salary at the time. He delivered titles and quickly became a league star.
Later, Buss offered him a landmark 25-year, $25 million contract extension — the first of its kind — starting in 1984 and running through 2009. It paid Johnson $1 million annually. Although his total NBA career earnings sat around $40 million, his wealth came from endorsements and business ventures.
According to Forbes, Johnson now has a net worth of $1.5 billion, making him one of the richest basketball players ever. His off-court earnings helped him reach that level far beyond what he made in the league.
Magical Investments and Endorsements Take Him to the Top
At his peak, Johnson made between $2 million and $4 million a year in endorsements. Even though the NBA wasn’t as lucrative back then, he built long-term wealth through business moves — investing in movie theaters, Starbucks, health care, and real estate.
One of his biggest wins came from a 60% ownership stake in EquiTrust, a life insurance company. When Johnson became involved, the company had $16 billion in assets under management. That’s since grown to $27 billion.
Still, not every decision paid off. Johnson once turned down an offer from Nike that would’ve paid him in stock and long-term equity. Instead, he signed with Converse for upfront cash, guaranteed endorsement exposure, and what seemed like a safer bet at the time. Nike eventually exploded — thanks in part to Michael Jordan — and became the top brand for athletes. According to reports, that missed deal could have been worth $5 billion today.
Johnson’s sports portfolio is also impressive. In addition to his business ventures, he owns minority stakes in MLB’s Los Angeles Dodgers, MLS’s LAFC, the NFL’s Washington Commanders, and the WNBA’s Los Angeles Sparks. When it comes to off-court wins, Magic might be unmatched.