While most athletes pursue authentication contracts, Magic Johnson quietly signed a 25 -year contract with Lakers and turned it into something that no one expected. That initial financial buffer helped launch one of the most diverse and powerful empires in sports and entertainment – from the retail chain to high -stake ownership in teams like Dodgers and Commanders.
25 yearsLos Angeles LakersThe contract has brought Magic Johnson long -term leverage
The path of Magic Jackson from the basketball court to the meeting room starts with some smart financial decisions. After signing a breakthrough 25 -year renewal contract with Lakers in 1984, ensuring him $ 1 million a year until 2009, his income on the field was about $ 40 million as small as he was about to build. He took that financial guarantee and founded Magic Johnson Enterprises in 1987, creating a $ 700 million business empire including cinemas, Starbucks chains, 24 Hour Fitness and Burger King, showing his business sensitivity outside the game.
With a solid foundation in the retail and real estate field, Magic Johnson has switched to sports. In 2012, he cooperated with Guggenheim Partners to buy Los Angeles Dodgers for $ 2 billion, holding 2.3% of the shares in this franchise. This investment proved to be profitable when the value of Dodgers doubled to about 4.8 billion dollars in 2024. At the same time, he invested in Los Angeles Sparks (WNBA) and Los Angeles FC (MLS), winning the tournament championship at both levels.
In 2023, an important moment came when Magic Johnson joined Josh Harris in the acquisition of Washington Commanders worth $ 6.05 billion, spending $ 240 million as a minor owner. The deal is especially noticeable not only because the shocking price has been paid, but also because the fact is that Commanders managed to recover: to 4-13 in 2023 and 12-5 in 2024 when they entered the NFC final, this shows that they are quickly regaining money.It was his business after retirement that really changed the game. From buying shares of Los Angeles Dodgers in 2012 to investing $ 240 million in the acquisition of a record of $ 6.05 billion of Washington Commanders in 2023, Magic Johnson’s instinct has turned his modest salary into an existing sports empire worth more than $ 1 billion.Read more:Phoenix Suns will soon trade Kevin Durant but they don’t care where he wants to goThrough the establishment of a diverse business empire with Magic Johnson businesses, a series of retail activities led by investment and minority of teams such as Dodgers and Commanders, he has turned his modest sports income into potential assets for generations.
