Having Made $100,000,000 Off of Shaquille O’Neal’s Mistake, Magic Johnson Explained His Selective Approach to Business Opportunities

Magic Johnson worked from humble beginnings to establishing his $620 million net worth. Although his basketball career played a significant role in building his wealth, he made some wise business decisions that helped him secure his multi-millionaire status. Discussing his business ventures with Maverick Carter, Magic Johnson in 2018 revealed his selective and thoughtful insights that helped him choose the best opportunities.

For instance, Magic Johnson once properly utilized a missed business opportunity by Shaquille O’Neal. Shaq was offered a $100,000,000 deal with Starbucks to open franchises in African-American communities. Shaq, however, rejected that opportunity stating it would not work out. However, Magic Johnson convinced the Starbucks CEO into a business deal, off which he made the same $100,000,000 profit.

Magic Johnson reveals his secret for securing the best business deals and opportunities

Only a few former and current NBA players have the business acumen worthy of praise. Some of them are even academically accomplished to assert such a claim. While Shaquille O’Neal has a Ph.D. in business management, Magic Johnson, Michael Jordan, and LeBron James have made a mark for themselves with their sagacious business deals and contracts. In a 2018 interview with Maverick Carter, Johnson revealed how he evaluates business opportunities to strike a deal eventually. Here is a clip of that interview, posted on Instagram by Wealth on Mars.

 

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Johnson critically evaluates all the pros and cons of a deal that could benefit him. He assesses the levels of the deal, only doing business with ones that match his level. His business venture, called the Magic Johnson Enterprises, has a diverse portfolio of investments in entertainment, sports franchises, and insurance. Giving youngsters a valuable lesson for making money, Johnson said:

“You can learn a lot from billionaires. They said the same amount of time it takes to make a million dollars is the same amount of time to make $100 million. I’ve been putting that in my mind, time is they key.” 

From this quote, the lesson here is that one could either make a million dollars or $100 million, depending on their wise decisions. And for that, they need to assess all pros and cons of their deal before jumping to a conclusion. Therefore, Magic Johnson believes that one needs to be clever when making big money moves.

Johnson might soon be a billionaire, all thanks to soccer

With the growth of Major League soccer in the United States, Magic Johnson might have seen this sporting boom way before it’s coming. His investment in the expansion club Los Angeles FC might be one of the main factors driving him toward his billionaire status. LAFC, founded in 2014, became the first soccer club in the United States to be valued at over $1 billion. The club has also seen unprecedented success, even winning the MLS Cup 2022.

Now that soccer legend Lionel Messi has also become a part of the league, every club’s valuation might gradually increase. Furthermore, with LAFC’s continuous successes, its valuation has been increasing at a dizzying rate. This would eventually mean Magic, and many others such as owner Joe Tsai and celebrities Will Ferrel, will gain considerable profits.