The former NBA star amassed his fortune through majority ownership of EquiTrust, according to reports
Magic Johnson has crossed the line from millionaire to billionaire.
The former NBA star and business mogul, 64, amassed most of his fortune from his majority ownership of EquiTrust insurance company, Forbes has reported.
Since Johnson took over the reins about ten years ago, the company’s assets have increased from $16 billion to $26 billion, per the outlet.
His investments in sports teams, such as the NFL’s Washington Commanders, the WNBA’s Los Angeles Sparks and the MLB’s Los Angeles Dodgers, also helped him reach billionaire status, CNN reported. He had previously owned a stake in his former NBA team, the Los Angeles Lakers, from 1994 to 2010, per the outlet.
He made around $40 million while playing 13 seasons for the Los Angeles Lakers — or roughly $110 million when adjusted for inflation — before he retired suddenly in 1991 due to his HIV diagnosis, per CNN.
"My family didn't come from money, that's one thing that hurt us sometimes. When you don't come from money, you don't know. I didn't even know what stocks [were] at that time," Johnson said on the podcast.
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He chose to sign a deal with Converse that gave him $100,000 annually in advance instead, Johnson said on the podcast.
The agreement with Nike would have compensated Johnson with $1 for each pair of sneakers sold and provided him with 100,000 shares of the company’s stock, according to Business Insider.
"So I passed on the stocks. Can you imagine? 45 years, $5 billion that stock would have been worth today," Johnson said on the podcast.
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