NBA legend Magic Johnson is positioning himself as a strong contender to surpass Michael Jordan as the wealthiest NBA athlete of all time, driven by his diverse business ventures and sports franchise investments. While Jordan remains a global icon with his brand and team ownership, Johnson has pursued a different path by investing in a variety of sports franchises and expanding his business empire.
The Financial Path of Two NBA Legends
Jordan, who earned approximately $94 million in NBA salary, according to , and currently has a net worth of $3.2 billion, built much of his wealth through his iconic partnership with Nike and his ownership stake in the Charlotte Hornets.
In contrast, by the same reporting, Johnson earned a modest $40 million in total NBA salary but has made up for it through his sharp business acumen and investments in sports teams and other ventures. His net worth is reported by Forbes to be $1.2 billion.
Billionaire Earvin “Magic” Johnson expanded his professional sports team portfolio and joined the Washington Spirit, a professional women’s soccer team, as an investor.#Forbes
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The former Bulls superstar’s early partnership with Nike set the stage for his financial empire. Signing his first contract with Nike for $500,000 per year plus royalties, Jordan created the “Air Jordan” brand, which continues to generate billions annually. In a stark contrast, the Lakers star passed on an early opportunity to accept Nike stock and royalties, instead signing a $100,000 deal with Converse.
According to Sports Illustrated, choosing the sneaker deal with Converse cost the then-young athlete $5.2 billion with the Nike brand.
While this decision is often seen as a misstep, Johnson’s subsequent investments have shown that he knows how to capitalize on other opportunities.
Magic Johnson’s Franchise Empire
Johnson has taken a broad approach to wealth building, securing stakes in multiple sports franchises across various leagues. He holds ownership positions in high-profile teams, including the Washington Spirit (NWSL), Los Angeles Sparks (WNBA), Los Angeles FC (MLS), and Los Angeles Dodgers (MLB). His ownership of the Los Angeles Dodgers, for instance, has proven especially lucrative. Johnson purchased a 2.3% share in the Dodgers in 2012, an investment reportedly valued at $50 million. At that time, the Dodgers were purchased for a record $2 billion, Reuters reports.
As of 2024, the franchise is valued at $5.45 billion, reflecting a significant increase in value.
In addition to traditional sports, Johnson also ventured into eSports, becoming part of the ownership group of Team Liquid, one of the most successful franchises in competitive gaming. His latest acquisition of a stake in the Washington Commanders (NFL) further solidifies his place in elite sports ownership groups.
This is not even to look at the partnership that changed his life with Starbucks.
Jordan, on the other hand, sold his majority stake in the Charlotte Hornets in 2023 for approximately $3 billion, after purchasing the team in 2010 for $275 million. Although this sale significantly boosted his net worth, it also marked a departure from team ownership, a field where Johnson is continuing to thrive and expand.
Value of Ownership and the Potential for Growth
The increasing value of Johnson’s sports franchises is a key driver of his potential to surpass Jordan in wealth. While Jordan’s wealth continues to grow through his Nike partnership and other ventures, Johnson’s diversified investments give him a broader base for growth. The Los Angeles Dodgers alone have gained billions in value over the last decade, and with Johnson holding stakes in multiple franchises, his overall portfolio benefits from the rising valuations across different sports leagues.
Furthermore, Johnson’s ventures outside of sports, including partnerships in real estate where he recently placed on property on the market for $14 million and entertainment, add more layers to his wealth-building strategy. His real estate portfolio and ownership of businesses such as theaters and restaurants have created a wide-ranging empire that has consistently delivered returns.
There Could Be One Problem for Johnson
There is one business venture that could prove dubious for Johnson. Johnson owns a 60 percent stake in EquiTrust Life Insurance Co., which generates $2.6 billion annually, making it a primary source of wealth. The acquisition gave him controlling interest in the company. EquiTrust Life Insurance focuses on life insurance and annuity products. Problem is the company does not seem to have the best ratings.
EquiTrust Life Insurance Company has a financial strength rating of B++ from A.M. Best, which is considered “Good” but on the lower end of their scale. It also holds a BBB+ rating from Standard & Poor’s, indicating an “adequate” capacity to meet financial commitments but with potential risks during adverse conditions. The company’s Comdex score is 39, placing it below average compared to other rated life insurers. Despite these ratings, EquiTrust manages significant assets, around $25 billion. Yet last year the company placed No. 7 on Insider Monkey’s list of 10 annuity companies to avoid.
The Race to Billionaire Supremacy
In 2024, Jordan is the wealthiest athlete globally, with some reports saying he is worth more than the Forbes reporting.
However, with Johnson recently crossed the billion-dollar threshold and with his growing business portfolio, he is projected to reach a net worth of $3.5 billion in the coming years. Given his momentum, experts believe Johnson could surpass Jordan within the next five years, particularly if his sports franchises continue to appreciate in value.
Jordan’s recent legal hurdles surrounding his NASCAR 23XI team and issues related to revenue distribution within NASCAR could present challenges to his future earnings after he refused to sign a new agreement with the sport’s organizing body, AP reports, while Johnson’s diversified portfolio seems poised for continued growth. The significant rise in valuation of the Dodgers and other teams Johnson holds stakes in could give him an edge in the ongoing financial race.
Johnson and Jordan have taken vastly different paths to build their fortunes, but both have reached billionaire status through savvy business strategies.
While Jordan remains at the top for now, Johnson’s strategic moves could see him take the crown in the years to come. The next five years will be crucial in determining which NBA legend ultimately reigns supreme in the world of wealth.
