Magic Johnson Net Worth: Breaking Down Contract, Endorsement, and More

Earvin “Magic” Johnson, apart from being a basketball legend, is an entrepreneurial inspiration. He came to the public limelight through his playmaking skills while playing for the Los Angeles Lakers. However, he moved past the sports tag. He became a star after winning five NBA championships and three MVP awards. That's why he is known as one of the greatest point guards in the history of basketball.

But Magic’s career off the hardwood is equally impressive. Over the past few decades, he has successfully turned into a businessman, entrepreneur, and investor. Now his assets are present in every field, including real estate, entertainment, sports ownership, and more. Let’s take a deep dive into Magic Johnson net worth in 2025. Along with it, we'll also explore his contracts, salary earnings, endorsements, and much more.

Magic Johnson's Net Worth in 2025

Magic Johnson currently holds a net worth of about $1.5 billion in 2025, as per the data from Forbes. It is worth noting that during his stint in the NBA from 1979 to 1991 and then in 1996-97, Johnson earned only $40 million in total. However, after moving on from the league, Johnson became a tycoon in terms of financial portfolio due to his business acumen. He has major investments, ownerships, or stakes in everything from movie theaters, Starbucks franchises, and real estate to healthcare.

Apart from that, the 60% stake that Magic has in the Equitrust ventures increases his net worth multiple times. It is worth noting that he also has small ownership stakes in the NFL's Washington Commanders, MLB's Los Angeles Dodgers, WNBA's Los Angeles Sparks, and MLS's LAFC. He is the fourth athlete billionaire Forbes has ever identified. The others are Michael Jordan, Tiger Woods, and LeBron James. Johnson officially became a billionaire in 2023.

Magic Johnson's NBA stardom might not have yielded him the desired results like the other great athletes. However, post-retirement, he completely turned the tables with his sharp knack business and a success story for new players.

Magic Johnson Contract

Magic Johnson retired from the NBA in the mid-90s, so he is not a part of the league now. Therefore, there is not any specific salary that Johnson is enjoying at the moment. However, one of the factors that added to Magic Johnson net worth was his fat contract with the Los Angeles Lakers during his stint with the team in the 80s. Notably, he inked a 25-year, $25 million contract with the Los Angeles Lakers in 1981. At the time, it was the longest and most lucrative contract in NBA history.

The highlight of the contract was the average annual salary of $1 million in that era, which was quite a big amount for a player at that time. Moreover, the contract included both playing and potential front-office responsibilities. He also re-negotiated later as salary caps evolved. It was the moment that set up the foundation for Magic’s long-term relationship with the Lakers franchise and the NBA overall.

Magic Johnson Salary

During his playing days, Magic Johnson’s highest salary came in the 1991–92 NBA season, when he earned $3.14 million. In comparison to the modern day NBA stars, that number seems small, but Magic was among the top-paid players of his era. Let's take a look at the total annual salary that he added to the Magic Johnson from his playing days as per

Magic Johnson Endorsements and Sponsorships

Magic Johnson's endorsements have skyrocketed his wealth after his retirement. His marketability during and after his career made him a favorite for top-tier brands. Even after such a long career and many years of retirement, most of them are still there working with the legend. Here is a list of the big brands that joined hands with Magic during and after his playing career:

Nike

Magic is not closely tied to Nike like Michael Jordan. However, he had promotional deals with Nike in the 1980s. The exact financial terms are unknown, but it is believed to be in the mid-six-figure range annually during his playing career. He even got stakes and royalty offer from Nike as per Forbes. But Johnson declined that offer to enjoy the $100,000 cash per year for Converse.

PepsiCo

Magic was one of the long-time faces of Pepsi. He appeared in commercials and promotional materials throughout the 1980s and 1990s. His Pepsi deal was reportedly worth over $1 million annually, including bonuses and global campaign appearances.

Burger King

Magic had a promotional partnership with Burger King in the early 90s. This move was taken to make it big through Johnson's family-friendly image. It was not as flashy as his other deals. However, it was still a six-figure agreement that included local and national campaigns.

24 Hour Fitness

Post-retirement, Magic entered signed a big partnership with 24 Hour Fitness. Eventually, they even opened Magic Johnson-branded fitness centers in urban communities. The deal was part promotional and part ownership, bringing in millions over time.

T.G.I. Friday’s and Starbucks (Franchise Agreements)

These are not technically endorsements, but Johnson entered the world of high-profile licensing and franchise partnerships with major chains:

• Starbucks: Owned 105 Starbucks locations before selling them back to the company for an estimated $75 million.

• T.G.I. Friday’s: Operated multiple locations across the U.S.

These hybrid business-endorsement partnerships established Magic as more of an entrepreneur.

Magic Johnson Investments

Magic Johnson’s empire truly expanded through strategic investments across multiple industries. Here are some of the biggest investments that the Lakers legend made in his life.

• Magic Johnson Enterprises (MJE): With a value of over $1 billion, MJE is the core of Magic’s business empire. It includes holdings in real estate, food services, sports franchises, and media.

• Los Angeles Dodgers (MLB): He bought the franchise in 2012 as part of a $2 billion deal. Magic owns a 2.3% stake, currently valued at around $115 million.

• Washington Commanders (NFL): Magic became a part-owner of the team in 2023 in a $6.05 billion sale. His stake is worth an estimated $250 million.

• Los Angeles Sparks (WNBA): Johnson is a majority owner of this WNBA team. That's why his sports portfolio is a decorated and respected among professionals.

• SodexoMAGIC: It is a food service and facilities management company that Magic co-owns with Sodexo, employing thousands nationwide.

Magic Johnson Assets

From bigwigs' investments to consistent salaries, Magic Johnson is not just limited to the money makers. Rather he has not put money in the assets and liabilities that can be mentioned as follows:

Car Collection

Magic Johnson isn’t known for flaunting his wealth, but he does have a collection of luxury and classic cars, including:

• Bentley Continental GT

• Mercedes-Benz S-Class

• Rolls-Royce Phantom

• Lamborghini Gallardo (gifted to his son)

Each vehicle is worth anywhere between $200,000 to $500,000. So after summing up the amount, his car garage has an estimated value of over $2 million.

Properties

Magic Johnson reportedly has ownership of the following properties in the U.S., including:

• Beverly Hills Mansion: With an estimated worth of $12 million, this mansion of Johnson features sprawling gardens, a gym, a movie theater, and a basketball court.

• Naples, Florida Vacation Home: Oceanfront property valued at around $6 million.

• Dana Point, CA: It is a coastal property that is used for retreats and events.

Moreover, Johnson owns multiple real estate investments via Magic Johnson Enterprises in cities like Detroit, Atlanta, and Washington, D.C. But those properties are focused on commercial and residential developments.

Other Assets

Magic’s other luxury assets include about $1.5 million of jewelry, along with a Gulfstream G550 valued at $50 million. He also rents bigwig yachts during his European vacations, but he does not possess the ownership of them.