Magic Johnson's $5 Billion Nike Gamble: How Cashing Out Changed the Game Forever

Magic Johnson's impressive billion-dollar empire traces back to a rookie blunder that even the most experienced investors would find cringeworthy—rejecting Nike stock for a quick cash offer with Converse at just 19 years old. During a recent appearance at the "Earn Your Leisure" Investfest conference in Atlanta, Johnson candidly revisited this financial misstep, which cost him what could have soared to over $5 billion in net worth. Immediately following his national championship victory against Larry Bird, Johnson was pursued by Converse, Adidas, and Nike. While Converse's offer was tempting with a $100,000 cash deal, Nike’s Phil Knight suggested equity in the form of company stock. Johnson, unfamiliar with the stock market, chose immediate funds over potential long-term wealth. Despite missing this opportunity, his trajectory is remarkable. Achieving billionaire status in 2023, Johnson's diversified empire includes significant investments in Starbucks, the Los Angeles Dodgers, and Washington Commanders. Today, he continues to thrive, enjoying luxurious living while advocating for financial education.

Image Credit: (Wikipedia Commons)