Magic Johnson came into the NBA in 1979 and took the entire league by storm, winning the Championship and the Finals MVP in his rookie season. The Los Angeles Lakers knew that the guard was a generational talent and offered him an unprecedented 25-year, $25 million contract at the end of his second year in the league. At the time, it was the richest contract in NBA history. The unprecedented sum of $25 million being offered to a player entering his third year in the NBA upset many veteran players, including Magic’s Lakers teammates.
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During Johnson’s recent appearance on Jimmy Kimmel Live, the host asked him about the infamous contract and why it bothered his teammates so much. The Hall of Famer explained the reason behind their jealousy. Magic dived into the psychology of NBA players to explain the backlash against the deal.
He said,
“[My Lakers teammates] were not happy because it was more money than anybody had ever received…Players don’t see the long-term. It’s all about the short-term. What Larry [Bird] and I did for the NBA, to this day, guys are capitalizing on. So now, they’re making $50 million a year.”
Johnson added that the NBA was so far down the pecking order when he came into the league, that broadcasters didn’t even air the Finals live. The Lakers legend claimed that after leading the Lakers to a series-clinching Game 6 win in the 1980 NBA Finals against the Philadelphia 76ers, he went back to his hotel room and saw its first broadcast.
Johnson’s revelation sheds light on how far the NBA has come in terms of popularity. Per Nielsen Media Research, the 1981 NBA Finals between the Houston Rockets and the Boston Celtics was the lowest-rated championship series until 2003.
However, Johnson and Larry Bird’s on-court rivalry drummed up interest in the NBA, before Michael Jordan and the Chicago Bulls’ dominance in the 90s turned the league into a global phenomenon.
Lakers owner Jerry Buss’ decision to hand his young star an unprecedented contract proved to be a masterstroke. He envisioned Johnson turning his team into must-watch TV and the guard came through, as the ‘Showtime Lakers’ became an unmissable act.
While most players failed to understand how Johnson’s contract was set to change their lives, some recognized the leverage his deal gave them.
Charles Barkley recalled celebratory mood in 76ers locker room after Magic Johnson’s contract extension
Magic Johnson’s 25-year, $25 million contract extension left most NBA players incensed, including his Lakers teammates. However, players in the Philadelphia 76ers locker room were overjoyed.
During an appearance on the Club Shay Shay podcast, Hall of Famer Charles Barkley recalled his teammates celebrating the news of the Lakers star’s contract extension. He said,
“Me, Doc [Julius Erving], Moses [Malone], Bobby Jones, Andrew Toney were in the locker room one day, and it broke that Magic Johnson had been the first NBA player to make a million dollars. We were walking around high-fiving each other. We could not believe that an NBA player made a million dollars… That’s how crazy it was thinking about money back in the day.”
Only five other NBA players earned seven figures annually when the Lakers handed Johnson the $1 million-a-year extension in 1981. All five were seasoned veterans.
The 76ers stars realized that the young guard’s contract extension had reset the players’ value. They could now demand record-breaking deals from their franchise using Johnson’s contract as a reference point. While the rest of the league failed to envision how the Lakers star’s extension was set to change their lives, Barkley and his 76ers teammates recognized its potential and were thrilled.
