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Magic Johnson joins Michael Jordan in billionaire athletes list: Who else in exclusive club?
Magic Johnson's wealth arises from sports team ownership, life insurance, and a missed opportunity in the '70s Read on to know more
Forbes has announced former basketball legend, Magic Johnson, as a billionaire—an exclusive status held by only four athletes.
With an estimated wealth of around $1.2bn (£990m), Johnson's portfolio includes a vast array of investments, among which his considerable holdings in multiple sports teams stand out.
However, Magic Johnson's wealth mostly comes from his substantial share in a life insurance company, according to Forbes.
Although the 64-year-long basketball champion retired in 1996 after a notable NBA career, his significant wealth primarily originates from ventures off the court.
Despite earning $40m over his NBA journey, as per Forbes, Johnson's significant wealth accumulated from his ownership stakes in three LA-based sports teams, including the popular MLB's Los Angeles Dodgers.
Beyond the realm of sports, Johnson has invested in popular brands such as Starbucks, Burger King, and 24 Hour Fitness, along with the life insurance company EquiTrust.
Johnson roughly commented on his trials with money, particularly expressing regret over bypassing shares in Nike when he first started in the NBA during the 1970s.
Instead, he opted for a yearly deal of $100,000 with Converse. Reflecting on his past decisions during the All The Smoke podcast earlier this year, he admitted that coming from a non-wealthy family often landed them in financial struggles due to a lack of financial knowledge.
Johnson rues missing out on what could have been a $5 billion stock today, had he accepted it 45 years ago. Nevertheless, he is the newest member of the athletic billionaires club.
Athlete Billionaires featuring Michael Jordan, LeBron James, and Tiger Woods
Michael Jordan
Forbes estimates that as of 2023, Michael Jordan holds a staggering net worth of $3 billion.
His wealth mainly stems from his commercial endeavors off the court, raking in an estimated $2.4 billion (pre-tax) during his career from endorsements with top-tier brands, such as Nike, McDonald's, Gatorade, and Hanes.
Reportedly, Jordan's recent annual royalty check from Nike was approximately $260 million. Jordan significantly increased his net worth in August 2022 when he sold his principal ownership in the Charlotte Hornets for a whopping $3 billion.
That's almost 17 times the value from when he acquired it in 2010, positioning him as the richest athlete in history.
LeBron James
Forbes holds LeBron James as the first active NBA player to clinch billionaire status while still on the court.
His net worth stands at $1 billion, with over $385 million earned as the NBA's highest-paid active player from team salaries with the Cleveland Cavaliers, Miami Heat, and Los Angeles Lakers.
James made his off-court presence count, amassing over $900 million from endorsements and assorted business ventures.
He holds shares in The Spring Hill Company, a media production firm, valued by Forbes at $300 million. Moreover, he owns a stake in Blaze Pizza, estimated at a value of around $30 million.
James has collaborated with leading global brands, including his lifetime association with Nike, which is presumed to hold a value of $1 billion.
Tiger Woods
Forbes estimates Tiger Woods' net worth at $1.1 billion and confirmed him as a billionaire in 2022.
By 2023, Forbes placed him 16th on their list of The World’s Highest-Paid Athletes with annual earnings of $75 million, deriving largely from ventures outside golf.
According to Golf Digest, Woods rakes in roughly $73.5 million each year through his golfing ventures and brand endorsements.
In his prime, his annual earnings surpassed $100 million. Purely from golf, he has reportedly bagged about $150 million.
Throughout his golfing span, Woods is said to have pulled in about $120 million from the PGA Tour. Forbes asserts that 90% of his wealth comes from sponsorships.
Given his career earnings are approximately $1.7 billion, this indicates he might have amassed as much as $1.53 billion from endorsements since his professional stint.
The primary contributors to his overall net worth are his sponsors, featuring prominent brands like Nike, Bridgestone, Hero Motocorp, Monster Energy, Rolex, TaylorMade, GolfTV, Centinel Spine, Full Swing Simulators, and Kowa.
