- Magic Johnson looks back on turning down a once-in-a-lifetime offer
- MJ reveals why he refused to accept Nike’s contract that includes stocks
- Johnson has missed out on billions by not signing with Nike
With an estimated net worth of $620 million, Magic Johnson has done pretty well for himself following 13 years in the NBA. But even he couldn’t help but shudder at the thought of how much money he may have left on the table by declining a deal with Nike after winning the national championship.
The contract, which includes stocks in the company itself, would have been worth roughly $5 billion today. Looking back on the mistake, the former Lakers star was seen in a video with Matt Barnes on ‘All the Smoke’:
“Nike. You were offered a deal and the estimated worth today would be $5.2B,” said Matt Barnes in amusement. “Thanks a lot, Matt,” said Magic before explaining what happened:
“So here I am, just won the national championship against Larry Bird, and three companies came in: Converse, Adidas, and Nike. Phil Knight came and said, ‘Hey, I can’t offer you the same type of money, but I could offer you stock.’ I didn’t know anything about it, and my family didn’t come from money, and I didn’t even know what stocks were at that time. So I passed on the stocks. Can you imagine? 45 years, $5 billion that would have been worth today.”
Magic missed on a once-in-a-lifetime opportunity with Nike. 😳
Luckily for him, everything turned out alright.
Watch episode 165 of #AllTheSmoke with @MagicJohnson on our YouTube.#ATSBestofSeason4 pic.twitter.com/3YZK469tr3
— All the Smoke (@allthesmokeprod) August 9, 2023
Apparently, Phil Knight offered Magic stocks in Nike attached to his contract, but Magic declined because he simply had no idea what stocks were or how valuable they could potentially become.
Had Magic accepted the deal, he could have earned millions as Nike expanded from a growing business to a sports brand empire.
Sneaker Deals Are Tricky For Rising NBA Stars
Looking back, Magic Johnson was actually one of the few big-name superstars that Nike failed to acquire. Over the years, the company has poured countless resources into building up its roster of stars, including guys like Michael Jordan and Charles Barkley, to Kobe Bryant, and LeBron James. Typically, Nike’s top-end sale pitches are enough to sway the biggest talents, but it wasn’t enough for Magic.
Fortunately, the former Lakers star is doing well enough to where he can look back on it and laugh at the missed opportunity, but it’s crazy to think how many times that might’ve happened to other players who weren’t as lucky.
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