Magic Johnson and Michael Jordan are two of the best examples of how the ideal life of an athlete can be. Not just on the court, but outside of that, they have used their resources and earned their billionaire status. The Los Angeles Lakers legend earned only around $40 million total as a player and the Chicago Bulls legend earned around $94 million in NBA earnings.
MJ signed his first contract with Nike for $500,000 per year, including royalties. A few years prior to this, Johnson was also approached where Nike offered him stock in their company and royalties. However, he rejected it and instead became a Converse athlete by accepting $100,000 per year in cash. Let’s outline similar yet different business decisions from these two billionaires.

Magic Johnson is using a different technique than Michael Jordan

Johnson has been part of 5 different ownership groups and teams, before adding the sixth team recently. NWSL side Washington Spirit, his NFL team Washington Commanders, and eSports franchise — Team Liquid. Apart from the capital city, the 5x NBA champion has been a huge supporter of Los Angeles and his investments with Los Angeles Sparks (WNBA), Los Angeles FC (MLS), and Los Angeles Dodgers (MLB) are a testament to that.
He also was part of the Lakers ownership group when he bought 4.5 percent of the franchise in 1994. In 2010, he sold it for a reported $50-60 million, and in 2012, he invested a similar sum in Dodgers’ stakes. Purchasing close to 2.3% share, he revealed his investment value of $50 million when the team was purchased for a record price of $2 billion.

In 2024, the MLB franchise is valued at $5.45 billion, and last year, it had a valuation of $4.80 billion. Currently, it only sits behind the Yankees with $7.55 billion. While Johnson is clearly using the team-building model, Michael Jordan sold his shares in the NBA team which bumped his valuation.
Michael Jordan and his NASCAR legal trouble
The 6x NBA champion sold his majority shares of Charlotte Hornets, ending a 13-year run as majority owner. In 2010, he paid $275 million, and in 2023, he sold his stake when the team was valued at $3 billion. In late 2020, he agreed to invest and chose NASCAR as he was always fascinated by cars. He then invested $150 million and the team is currently the sixth highest-valued team.

However, 23XI have a situation to tackle, which they have failed to address. NASCAR had aimed to wrap up talks for a new charter system before the playoffs started. But now it seems unlikely, especially with Michael Jordan and his co-owner Denny Hamlin being firm in their decision.

The charter policy will expire after the 2024 season, and currently, teams only get 25% of that revenue. The current deal offers seven years with an option for another seven, but MJ and Co. are set to fight for a permanent charter. Plus, the bad news is that some teams have reportedly agreed and might sign it by the end of this weekend.

If it happens, it will leave less of a negotiation for the teams currently opposing the charter. With Dodgers rising every year in estimation while MJ is left in legal trouble with his latest ventures, will that be enough for the former to overtake the $2 Billion difference in net worth, only time will tell?