Lakers legend Magic Johnson reveals his rookie-era mistake involving Michael Jordan and Larry Bird

When discussing NBA legends who defined an era and inspired an entire generation of superstars, three names immediately come to mind: Michael Jordan, Magic Johnson, and Larry Bird. These players are often debated as some of the greatest in history, and Los Angeles Lakers legend Magic recently revealed what his biggest rookie problem was.

The storied rivalry between Johnson and Bird began in 1979, when Johnson led his Michigan State Spartans to a 75-64 victory over Larry Bird and the Indiana State Sycamores in the NCAA National Championship. That win not only set the stage for a decades-long NBA rivalry but also attracted numerous shoe offers for the 19-year-old Magic.

Johnson admitted he made a colossal mistake while evaluating his rookie shoe deals ahead of his NBA career with the Los Angeles Lakers, who selected him first overall in the 1979 NBA Draft, according to the Earn Your Leisure podcast.

“Converse offered me the most money. And so, when you’re Black and you’re broke, you take the most money, right? So I decided to go with Converse,” Johnson said. “But Phil Knight came in and said, ‘I can’t offer you the same amount of money as Converse, but I can give you something called stock.’ And I passed on the stock, not knowing anything about it at 19. You know how much that stock would be worth today, 46 years later? A billion-five.”

Magic Johnson and Michael Jordan, NBA legends.

By passing on the stock deal, Magic missed out on a potential fortune and an opportunity to get an edge over his rival, Bird. Meanwhile, Michael Jordan signed an unprecedented five-year, $2.5 million deal with Nike in 1984, including a 5% royalty on shoe sales—a contract that would forever change athlete endorsements and the business side of sports.

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How early decisions shaped Magic, Bird, and Jordan’s legacies

Magic Johnson’s rookie year represented more than the start of a Hall of Fame career; it was a defining moment in the business of basketball. Choosing the immediate payout from Converse over the long-term stock option from Nike illustrates the tough financial decisions young athletes face. At 19, Magic prioritized what he understood—cash—but the decision had far-reaching historical consequences.

Larry Bird’s trajectory to the NBA offers a different lesson. His rivalry with Magic, ignited in the 1979 NCAA National Championship, shaped not only their NBA careers but also the cultural perception of player legacies. Bird’s strategic approach to his career and endorsements contrasted with Magic’s rookie mistake, showing how off-court decisions can define public image and long-term influence.

Michael Jordan’s rookie endorsement deal with Nike in 1984 further transformed the landscape. His five-year, $2.5 million contract with a 5% royalty on shoe sales set a new standard for athlete earnings and magnified the consequences of Magic and Bird’s early choices. Together, these three legends demonstrate that legacy in the NBA isn’t determined solely on the court; early career decisions and foresight can enhance—or limit—the impact of a legendary career.