If you have seen any of the summer clips of Magic Johnson relaxing on his massive yacht, you know that the NBA legend has done just fine financially.
While that’s certainly true, it’s worth noting that even a man with a reported net worth of $800 million hasn’t seized every business opportunity. The clearest example came in 1979, shortly before he dazzled on NBA courts. Back then, Magic walked away from a deal of a lifetime, a decision he reflected on during a 2023 appearance on “The Ellen DeGeneres Show.”
Nike’s pitch to Johnson
Magic’s story takes us back to a time when he — now arguably the greatest point guard ever — was a rising basketball star. Earvin had earned that early acclaim after a dominant NCAA Finals run with the Spartans.
With his name shining across the scene, the young guard drew attention not only from every NBA team with a high pick in the 1979 draft lottery, but also from various companies — particularly shoe brands — eager to sign the charismatic prospect for endorsements. One of them was a then little-known company called Nike.
Interestingly, the globally recognized powerhouse had a far from straightforward path to success. Triumph was anything but guaranteed for the brand founded in 1964, as co-founder Phil Knight vividly recalls in his acclaimed book “Shoe Dog.”
What Nike did have, however, was an eye for talent capable of bringing visibility and credibility to the brand in its early stages. With that in mind, Knight, an Oregon native, reached out to Johnson, the future number one draft pick of the Los Angeles Lakers, to explore the possibility of working together.
A missed opportunity
Magic recalled that when Nike first contacted him, they were just one of many companies interested in signing him. What set their offer apart, however, was its unusual structure for the time.
Instead of offering money like everyone else, Earvin recalled that Nike couldn’t, so they offered company shares instead — plenty of them.
For the global sportswear and athletic company from Portland, it made sense. As Johnson recalled, they were just starting out and lacked the financial muscle of their competitors. Instead, they aimed to sell him on potential: if the company grew, so would the value of any stock — a hypothetical win-win.
Anyone who took that path is laughing all the way to the bank today. Magic, who eventually turned down Nike and is now valued at $115.76 B, isn’t.
Reflecting on that missed opportunity, the three-time MVP admitted that, coming from an inner-city background, he simply didn’t yet have the business know-how. Stocks, Magic said, were a concept he neither understood nor had ever encountered, a knowledge gap with major consequences.
“Boy, did I make a mistake,” admitted the Lakers icon, per Complex. “I’m still kicking myself. Every time I’m in a Nike store, I get mad. I could’ve been making money off of everybody buying Nikes right now.”
In business, as on the hardwood, sometimes you win, sometimes you lose. In this instance, Johnson, who signed his first shoe deal with Converse for $100,000 a year, a sum tiny compared with what his Nike stocks could have been worth, certainly fell into the second category.
This story was originally reported by Basketball Network on Aug 27, 2025, where it first appeared in the Off The Court section. Add Basketball Network as a Preferred Source by clicking here.
