We often hear about athletes ‘fumbling the bag’. In recent history, Dennis Schroder is one such NBA star that comes to mind. The German guard supposedly rejected an $84 million offer only to end up signing a $5.9 million contract. If you think giving up on $78 million was a stupid decision, wait to hear Magic Johnson’s story.
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Magic is one of the greatest players the league has ever seen. As an NBA pro, the 6-foot-9 guard racked up one of the most illustrious resumes we’ve seen and earned more than $27 million from his contracts.
With a $600+ million net worth, Johnson is easily one of the smartest individuals. An intelligent businessman, who has deals with Starbucks, 24Hour Fitness, and AMC Theatres among many more, Earvin once declined the opportunity to earn as much as $5 billion.
Also Read: Magic Johnson Reveals the Reason for Never Teaming Up With Michael Jordan
Magic Johnson chose Converse’s $100,000 over Nike’s stocks
Back in 1979, Johnson led the Michigan State Spartans to defeat Larry Bird’s Indiana Sycamores and clinch the national championship. As a result, three companies approached the 19-year-old – Converse, Adidas, and Nike.
Apparently, Nike offered Magic 1 dollar for every shoe they sold and 100,000 shares in stocks at $0.18 per share. Whereas, Converse, an established brand, offered Magic $100,000 a year.
Having never seen or heard of such an exorbitant amount, Johnson picked Converse.
On an appearance on All The Smoke, the Lakers legend spoke about the decision of declining Nike.
“Here I am, just winning a national championship against Larry Bird and 3 companies came in. So Converse, Adidas, and Nike. Nike was just a year or two old. And so, Converse offered me the most money. So you know, when you grow up, you take that.
Phil Knight came in and said ‘hey, I can’t offer you the same type of money but I can offer you stock’. I didn’t know nothing about it (stocks). And my family didn’t come from money, that’s one thing that hurt us sometime. When you don’t come from money, you don’t know… I didn’t even know what stocks was at that time, right. So I passed on the stocks. Can you imagine? 45 years… $5 billion dollars that stock would have been worth today.”
Magic Johnson on how he chose Converse over Nike and missed a chance to earn billions. Nike offered him $1 for every pair of shoes sold and 100,00 shares worth $0.18. pic.twitter.com/84kyQ1q00T
— The Art Of Dialogue (@ArtOfDialogue_) January 16, 2023
What would Nike’s deal be worth today?
Sure, at first $100,000 a year from Converse would seem like the better deal. After all, Nike was somewhat of an unheard brand.
However, experts estimate that Magic Johnson’s deal with Nike would’ve summed up to as much as $5.3 billion today!
One different choice as a youngster and Magic would easily be miles ahead of the 2nd highest-earning athlete of all time.
Also Read: 19-year-old Magic Johnson Once Visited $100 Million Playboy Mansion Thanks to Jerry Buss
