“This Is Why He’s a Billionaire”: Magic Johnson’s Frugality Enlightened Bill Simmons

Magic Johnson has inspired a lot of NBA athletes to become entrepreneurs and investors after retirement. His words and financial wisdom even inspired the legendary Shaquille O’Neal to grow his own brand. In a recent mini vlog, podcaster and media personality Bill Simmons rolled out a story that showed exactly why Magic Johnson is a billionaire and a revered businessman.

Simmons’ tale touched upon the 5x NBA champion’s frugal ways, which he discovered while working with Magic on the NBA Countdown show during the 2012-13 season. On his YouTube channel, Bill Simmons shared the story of Magic Johnson preserving the remnants of Jamba Juice for a bizarre reason. 

“Magic would come in [the studio], he had a guy who’d help him out with stuff. And the guy would come in right around the same time with this giant Jamba Juice and then a smaller cup that was also Jamba Juice,” Simmons said while walking through the streets in the video.

According to the founder of The Ringer, he didn’t initially have the rapport with Magic to ask personal questions. However, after a while of working together, he finally decided to ask, “What’s the deal with the smaller cup? Is it like a shot?…What’s in there?” However, Simmons didn’t expect the answer Magic Johnson gave him.

“He [Magic] said whenever he goes to Jamba Juice, and he’d go every day, he’d always have the Jamba juice stuff left in the blender from his large cup. And he asked, what would happen to it. And they said, ‘Oh, we just throw that out.’ And he’s like, ‘Well, I’m paying for that, put that in a small cup for me,’” Simmons was truly blown away by Magic’s aversion to wasting food.

“So then he would get the large cup and the small cup. This is why he’s a billionaire,” the 54-year-old added.

This story sums up how the Lakers legend values every penny. This also explains his capital expansion and the never-ending desire to keep building on his Empire through careful investment. 

Magic grew up under very humble conditions in Lansing, Michigan, where he worked as a garbage man from a very young age. Therefore, he knows how to value small things in everyday existence that might seem trivial to a lot of people.

What inspired Magic Johnson’s approach?

There are numerous instances of athletes going all into their business ventures without seeking the advice of experts from different fields. Success Magazine’s Don Yaeger covered Johnson’s interview with the magazine detailing the reasons why he was able to become such an influential businessman. The former athlete revealed two keys to succeed in the volatile market, i.e. listening and reading. Early on in his career, after being unable to find much traction in his business, the top-notch point guard needed guidance. 

Much to his delight, Creative Artists Agency co-founder Michael Ovitz took the curious entrepreneur under his wing. This experience taught Magic Johnson the value of building connections. Ovitz taught the iconic player that he should start reading a ton of business magazines and focus on business news. The Guard also learned that if one has to thrive then they should be prepared to be “humbled”.

“If you want someone to be your mentor, you better be ready to listen and be humbled. Michael wasn’t sure about working with me because so many athletes think they can move right into business and never take anyone’s advice. I had to prove to him I was serious and that I would listen,” Magic Johnson told Success.

The Magic Johnson story expands beyond athletes. To be a successful business personality, the value of communication is paramount. Apart from that, budding entrepreneurs must expand their knowledge base and be ready to soak in advice that can appear debasing.