Magic Johnson Showed His Business Savvy In Major Starbucks Deal

When Earvin “Magic” Johnson reflects on his most formidable business challenges, he doesn’t recall dueling legends Larry Bird and Michael Jordan. Instead, the 65-year-old entrepreneur cites a pivotal boardroom encounter in 1998 with skeptical Starbucks shareholders, whose approval became a defining moment in his post-NBA career. During a May appearance on "The Deal" with Alex Rodriguez and Jason Kelly at the Milken Institute Global Conference, Johnson confessed that persuading Starbucks investors to penetrate underserved urban markets was his ultimate test. He noted, “Facing the [Starbucks] board and a theater full of skeptical shareholders was tougher than competing against Bird and Jordan.” After retiring from the Lakers post-HIV diagnosis, Johnson aimed to establish his credibility through Magic Johnson Enterprises, proving that neglected communities harbored untapped opportunities. His ingenious strategy involved inviting Starbucks’ CEO Howard Schultz to experience Magic Johnson Theatres, leading to the groundbreaking joint venture Urban Coffee Opportunities. This deal, which established 125 locations across major U.S. cities, marked a significant milestone in Johnson's business journey, showcasing how former athletes can thrive in the corporate realm.