Undoubtedly one of the most celebrated athletes of our time, Magic Johnson rose from meager beginnings. Born in Lansing, Michigan, and he acquired the nickname Magic after a high school game in which he scored 36 points, grabbed 18 rebounds, and made 16 assists. He would go on to lead Michigan State to the National Collegiate Athletic Association (NCAA) tournament finals in 1979. His team defeated Indiana State University and its star player, Larry Bird. The two would be connected throughout their professional careers.
Johnson left college early, to join the Los Angeles Lakers. He helped lead the Lakers to five NBA championships (1980, 1982, 1985, 1987, and 1988.) In 1980 Johnson became the first rookie to be named most valuable player (MVP) of the NBA championship finals. He was named NBA championship finals MVP again in 1982 and 1987 and was the BA’s season MVP three times.
However, the true Legend of Magic Johnson extends well beyond the hardwood and into the board rooms. His success on the court has been overshadowed by the enormous talent he’s shown in business. He continues to open theaters, entertainment complexes, restaurants and retail centers in underserved communities nationwide. (He has also opened theaters in Atlanta, Detroit and Houston, and has plans for new ones in Chicago, Cleveland, New Orleans, New York City, San Diego and Washington, DC.)
How has Magic’s stature seemingly grown post superstardom? He relies on research, connections, instinct and a knack for making the right pass at the very right moment. Like any savvy business man, Johnson strategizes and then moves on impulse, but what separates him from your typical entrepreneur is he’s accustomed to handling pressure.
EBM: You seem to be more involved with the NBA than you were when you played: minority ownership, Olympic selection committee, Rookie symposium. Was it your intention to be this involved after you retired?
Magic: (Laughing) I can’t remember that long ago. It’s been a long time since I’ve played. But my continued involvement with the NBA has been a blessing. I’ve built some solid relationships during my time in the league and they continue to support my endeavors today.
EBM: You were criticized a bit for your support of Hillary Clinton. A lot of people thought you should have extended your support to Barack. How do you respond to that?
Magic: Firstly, I am so proud of Barack and I honestly think he’s going to do an incredible job. But Hillary would have done an outstanding job as well. More so, I am friends with the Clintons and it was my privilege to extend my support.
EBM: The NBA has nearly tripled in revenue since you began playing. Players are making absurd amounts of money before even lacing up their shoes. Does that affect the quality of the product?
Magic: The league has done well, and thankfully it has continued to flourish. But we have to respect the game. And how that’s done is by everyone being responsible players, executives, etc. We can never take the fans for granted. And if we are not mindful of that then the product will falter. It’s the greatest game ever played and it will continue to prosper if we appreciate it.
EBM: You have been an Ambassador of good will. The Magic Johnson Foundation provides resources and opportunities for inner-city youth. More recently you received an award for being one of the more reputable celebrity foundations. How are you able to provide that sort of dedication to your non-profit agency?
Magic: A large portion of my business is in urban communities. And I’m a product of the very community I invest in. Therefore, it is my duty to do right by the community that has made me. And my community-based foundations allow me to serve the community without being concerned with the opinions of the share holders. Furthermore, in these very communities you’ll find the next Magic Johnson, doctor, lawyer, etc. In many instances you find the best talent in urban environments.
EBM: In addition to your non-profit organization, Fortune magazine has your net worth at $800 million. How do you approach investing?
Magic: I generally invest in stable institutions, companies that have shown steady growth. There are no quick fixes. As our country experiences its worst financial crisis in decades we are being forced to look closer at our investment strategies. There’s so much that goes into investing; understanding the management structure, the product, the durability of that company. You just can’t rely on a broker anymore, you gotta do your homework.
EBM: You have a new book titled, “32 Ways to be a Champion in Business.” Do you offer insight into your personal portfolio?
Magic: Yeah, actually I do. It’s somewhat of a blue print on how to be an entrepreneur. I discuss the importance of research, branding but more importantly discipline. Since I started in business 17 years ago I quickly learned the most important part of business is discipline, even during the difficult times. You have to remain steady in your approach. Now I oversee roughly 91 businesses and I apply the same philosophy to each of my interest. Through discipline you’ll discover dedication and through dedication you’ll find success.
EBM: The number one question that most sports aficionados have is who was harder to play against: Larry Bird or Michael Jordan?
Magic: (Laughing) As I’ve said in other interviews, and I’ve even written about it. Those two are probably the fiercest competitors to ever play the game, each with different approaches. But in terms of will, you can’t separate them. Though I will say Bird can frustrate you. I don’t think people know how much of a trash talker he was. Bird was something! And if you would get him upset, he would see to it that the fans got their money’s worth. But off the court he is one of my dearest friends. The NBA is based on confidence and what separates the good ones from the greats is their confidence. Whether it’s Bird, Jordan or Barkley they each have superior confidence. Whereas for others taking the game winning shot is unnerving, these guys lived for the last shot and wouldn’t hesitate to take it.
EBM: We appreciate your time. Thank you for the interview.
Magic: No problem, and good luck.
