“Forget All the Basketball Stuff”: Magic Johnson Built his $620 Million Net Worth by Empowering ‘Underserved’ Communities

Magic Johnson is synonymous with NBA and has been since he ‘wowed’ the world with his exceptional playmaking abilities. Magic, a 5-time NBA champion, played the point guard position for the Los Angeles Lakers and was an integral piece of the ‘Showtime’ era.

His impact on the court can only be out-matched by his entrepreneurial and philanthropic ventures. With a net worth of $620 Million, Johnson has achieved great success post his NBA career through investments, media companies, and tie-ups with major brands.

Magic has always advocated for the underprivileged and continues to do so through initiatives designed to help revitalize communities. ‘NBA on TNT’ analyst and sports personality – Charles Barkley, was also impressed and grateful for Johnson’s initiative.

Magic Johnson and his business initiatives for the Under-served

Magic Johnson identified opportunities to empower underserved communities through business initiatives. Through these ventures, Magic found a way to have a social impact while turning millions in profit.

As elaborated in the book, Magic signed a partnership with Sony Entertainment to open a multiplex theatre at Baldwin Hills Crenshaw Plaza in Los Angeles. The theatre had multiple concession stands offering cultural snacks and stadium seating. The inner city theatres also contained murals of African American heroes like Martin Luther King Jr. and Jackie Robinson. The book also mentioned how Barkley was impressed with Magic’s contributions to the less privileged communities. 

The Lakers legend’s business empire and its dependence on and empowerment of underserved communities were detailed in the book “When the Game was Ours.”

“Johnson’s mission was to establish thriving businesses in underserved communities. Where others saw urban blight and decay, Magic saw opportunity. He signed a partnership with Sony Entertainment and opened a 12-screen multiplex theater at the Baldwin Hills Crenshaw Plaza in Los Angeles. His inner-city theaters featured murals of African American heroes like Martin Luther King Jr. and Jackie Robinson. He insisted on multiple concession stands offering cultural snacks and stadium seating. As Magic conceptualized the revitalization of city neighborhoods, it was apparent to him that the glaring omission in his vision was the lack of a meeting place. In 1998, through a partnership with Starbucks, he opened his first Urban Coffee Opportunities store in Los Angeles. His formula proved to be a stunning success. Magic Enterprises grew to be worth more than $500 million, yet it was his unique way of assisting minorities while still turning a profit that made him the envy of his NBA peers.”

The book also revealed how several athletes followed in Johnson’s footsteps and considered him their business guru.

“Players who used to flock to Johnson for basketball advice now approached him as their business guru. “Forget all the basketball stuff,” said Charles Barkley. “The economic opportunities he provided poor people in their own communities is the most remarkable thing he’s ever done.”

Magic Enterprises also partnered with Starbucks to build an Urban Coffee store that would provide a platform for communities to interact with each other. This venture was an instant success making Magic hundreds of millions in profits.

‘Not just a Basketball Guru’

In his career, the NBA legend has worked in multiple roles in the league. As a coach, president of basketball operations, TV analyst, and motivational speaker – Magic has done it all. NBA players would flock to him for his Basketball wisdom.

However, players are now turning towards him for business advice as well. NBA players usually do not come with strong-educational backgrounds as basketball becomes their life at a very young age. They need to seek out veterans for guidance. Who better in that regard than the man who has done it all?