There have been countless entertaining, disappointing, and surprising moments throughout NBA history. Among them is an iconic story involving Los Angeles Lakers legend Magic Johnson, one that centers on a career-defining business decision he turned down.
From early on, Johnson knew he wanted to build a business empire after basketball. But when he first entered the NBA, he didnât expect to receive a life-changing offer from a rising sports apparel company.
The opportunity came shortly after he led Michigan State to victory over Larry Birdâs Indiana State in the most-watched college basketball game at the time. Following that historic matchup, Johnson received a call from Nike. He later recounted the story during an episode of the All The Smoke podcast two years ago.
âI had just won the National Championship against Larry Bird, and three companies came in: Converse, Adidas, and Nike,â Johnson said. âNike was only a year old, and Converse offered me the most money. So when you grow up poor, you take the money.â
Guard Magic Johnson of the Los Angeles Lakers
Johnson went on to recall a key moment with Nikeâs co-founder. âPhil Knight, CEO of Nike, came to me and said, âHey, I canât offer you the same amount of money as those guys, but I can offer you stocks,ââ he added. The look on Johnsonâs face while retelling the story said it all, a missed opportunity that wouldâve been the deal of a lifetime.
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Why Johnson turned down the offer
In the world of sports, itâs common to see how athletes navigate the complex relationships between sponsorships and team affiliations. For Johnson, coming from a family that valued money but lacked financial literacy proved to be a challenge. That background played a key role in his decision to turn down a major offer early in his NBA career.
âI didnât know anything about stocks, and that happened because my family didnât come from money. Thatâs something that hurts us sometimes in life. When you come from that background, itâs difficult to understand business,â Johnson explained.
Johnsonâs business ventures today
As of April 2025, Johnson remains a powerhouse in the business world through his company, Magic Johnson Enterprises (MJE). His ventures span multiple industries and emphasize community empowerment. Hereâs a look at some of his most impactful business initiatives:
Major holdings and investments:
- Los Angeles Dodgers (MLB): Co-owner since 2012.
- Los Angeles Sparks (WNBA): Part-owner.
- Los Angeles FC (MLS): Part-owner.
- Washington Commanders (NFL): Co-owner as part of a group that purchased the team in 2023.
- Washington Spirit (NWSL): Investor since September 2024.
- Team Liquid (eSports): Co-owner.
- Canyon-Johnson Urban Fund: A partnership with Canyon Capital that has financed numerous real estate developments in urban areas across the US. Although the initial funds may have concluded, Johnsonâs involvement in urban development remains significant.
