How NBA icon Magic Johnson became a billionaire

Former basketball icon Magic Johnson has become the fourth sports star to reach billionaire status, with a net worth of $1.2 billion.

Transcript

00:00 Former NBA star Magic Johnson has become the fourth athlete to reach billionaire status,

00:04 but his wealth doesn't come from sports.

00:07 The 64-year-old former Los Angeles Lakers guard only earned a total of $40 million during

00:12 his 13-year career with the team.

00:15 To put that in perspective, LeBron James has earned $480 million.

00:19 Even during his prime playing years, Johnson only pulled in $2 to $4 million per year in

00:24 endorsements according to Forbes.

00:26 So how did Johnson make his billion?

00:28 The sports star has many investments in fast food franchises, real estate, health care,

00:33 and life insurance.

00:34 He also has ownership stakes in various sports teams.

00:37 Johnson bought a 4.5% stake in the Lakers for $10 million back in 1994.

00:41 In 2010, he sold it for an undisclosed sum.

00:45 In 1998, he partnered with Starbucks to open more than 100 coffee shops in black neighborhoods

00:50 across the country.

00:51 He also sold the shops in 2010 back to Starbucks for a reported $75 million profit.

00:57 Johnson then used the money to write a $50 million check to join the Dodgers ownership

01:01 group in 2012.

01:02 The stake is now worth an estimated $110 million.

01:06 He also owns a 60% stake in an Iowa-based life insurance company, which makes up the

01:11 majority of his net worth.

01:12 Today, Johnson has money in everything from NFTs to real estate development and even Pepsi