Magic Johnson becomes fourth athlete to earn billionaire status

NBA Hall of Famer and businessman Earvin "Magic" Johnson is officially a billionaire, according to Forbes.

Johnson joins Michael Jordan, LeBron James and Tiger Woods as the fourth athlete to earn billionaire status. Earlier this year, he added a minority stake in the Washington Commanders to his portfolio. He also has a 2.3% stake in the Los Angeles Dodgers and minority ownership of LAFC and Los Angeles Sparks.

Forbes estimates Johnson's net worth to be $1.2 billion as a result of his stakes in teams and investments in a variety of industries.

During Johnson's 13-season playing career with the Los Angeles Lakers, he made just $40 million ($110 million when adjusted for inflation). However, he was often ahead of the game, as former Lakers owner Jerry Buss taught him about business and had Johnson meet with various business people in Los Angeles, Johnson told the Los Angeles Times in 2013.

Johnson's 60% investment in life insurance company EquiTrust makes the most of his net worth. EquiTrust's assets have grown from $16 billion to $26 billion with annual revenues of roughly $2.6 billion, according to Forbes.

Some of Johnson's business decisions have also focused on aiding predominantly Black neighborhoods.

He has a 50/50 venture with Starbucks to open cafes in Black neighborhoods and a partnership with Loews to set up theaters in major cities with high Black populations such as New York City, Los Angeles, Atlanta and Houston, according to Forbes.