Earvin "Magic" Johnson Jr. (born August 14, 1959) is an American businessman and former professional basketball player. Many people consider him the best point guard ever. Johnson played his entire career with the Los Angeles Lakers in the National Basketball Association (NBA). After winning a college championship with the Michigan State Spartans in 1979, Johnson was chosen first in the 1979 NBA draft by the Lakers. He led the team to five NBA championships during their "Showtime" era. Johnson retired suddenly in 1991 after announcing he had HIV, but he returned to play in the 1992 All-Star Game, where he won the All-Star MVP Award. He retired again after other players protested his return, but he came back in 1996, at age 36, to play 32 games for the Lakers before retiring for the third and final time.

Johnson was known for his excellent ability to see the court, pass the ball, and lead his team. He won three NBA Most Valuable Player Awards, three NBA Finals MVP awards, nine All-NBA First Team honors, and twelve All-Star Game selections. He led the league in regular-season assists four times. Johnson holds the NBA records for the highest average assists per game in the regular season (11.19) and in the playoffs (12.35 assists per game). He also holds the NBA playoffs records for most career assists and triple-doubles. Johnson was a co-captain of the 1992 United States men’s Olympic basketball team ("The Dream Team"), which won the Olympic gold medal in Barcelona. Johnson is one of eight players to achieve the basketball Triple Crown. After leaving the NBA in 1991, he formed the Magic Johnson All-Stars, a traveling team that played exhibition games around the world.

Johnson was honored as one of the 50 Greatest Players in NBA History in 1996 and selected to the NBA 75th Anniversary Team in 2021. He was inducted twice into the Naismith Memorial Basketball Hall of Fame—in 2002 for his individual career and in 2010 as a member of the Dream Team. His friendship and rivalry with Boston Celtics star Larry Bird, whom he faced in the 1979 NCAA finals and three NBA championship series, are well-documented.

After retiring, Johnson worked to promote HIV/AIDS prevention and safe sex. He also became an entrepreneur, philanthropist, broadcaster, and motivational speaker. Johnson was a former part-owner of the Lakers and served as the team’s president of basketball operations in the late 2010s. He is a founding member of Guggenheim Baseball Management, which manages the Los Angeles Dodgers (MLB). He is part of ownership groups for the Los Angeles Sparks (WNBA), Los Angeles FC (MLS), the Washington Commanders (NFL), and the Washington Spirit (NWSL). Johnson has won 16 championships during his career: one in college, five as an NBA player, and ten as an owner. In 2025, Johnson received the Presidential Medal of Freedom, the highest civilian award in the United States. As of May 2025, his net worth is estimated at US$1.5 billion by Forbes.

Early life

Earvin Johnson Jr. was born in Lansing, Michigan, to Earvin Sr., a worker at General Motors, and Christine, a school janitor. Johnson had six siblings and three half-siblings from his father’s earlier marriage. His parents worked hard every day, and Johnson learned the value of hard work from them. His mother cleaned their home and prepared meals after work each night. His father worked as a janitor at a used car lot and collected garbage, but he never missed a day at his job at General Motors. Johnson often helped his father with the garbage route, and neighborhood children sometimes teased him, calling him "Garbage Man." His mother raised him in the Seventh-day Adventist Church.

Johnson loved basketball as a young man. His favorite player growing up was Bill Russell, whom he admired for winning many championships more than for his athletic skills. He also looked up to players like Earl Monroe and Marques Haynes and practiced basketball all day. Johnson came from an athletic family. His father played basketball in high school in Mississippi, and Johnson learned about the game from him. His mother, who was from North Carolina, had also played basketball as a child and watched her brothers play the game.

By the time he was in the eighth grade, Johnson began thinking about a future in basketball. He was an excellent junior high player, once scoring 48 points in a game. Johnson was excited to attend Sexton High School, a school with a strong basketball program and a history of success that was only five blocks from his home. His plans changed when he learned he would be bused to Everett High School, a school mostly attended by white students, instead of going to Sexton, which was mostly attended by black students. His sister Pearl and brother Larry had been bused to Everett the previous year and had a difficult experience. There were incidents of racism, including rocks being thrown at buses carrying black students and white parents refusing to send their children to school. Larry was removed from the basketball team after a conflict during practice and asked his brother not to play. Johnson joined the team but became upset when his new teammates ignored him during practice, not even passing the ball to him. He almost got into a fight with another player before the head coach, George Fox, stepped in. Eventually, Johnson accepted his situation, and a small group of black students looked to him as their leader. In his autobiography, My Life, Johnson described how his time at Everett High School changed him.

High school career

At 15 years old, Johnson was first called "Magic" after scoring 36 points, grabbing 18 rebounds, and making 16 assists in a single game as a sophomore at Everett High School. A sports writer named Fred Stabley Jr., who worked for the Lansing State Journal, gave him the nickname, even though Johnson’s mother, who was deeply religious, believed the name was disrespectful to her faith. During his final high school season, Johnson led Everett to a 27–1 win–loss record, averaging 28.8 points and 16.8 rebounds per game. He helped his team win the state championship in an overtime game. Johnson dedicated this victory to his best friend, Reggie Chastine, who had died in a car accident the summer before. Johnson credited Chastine for helping him grow as a basketball player and as a person, saying later, "I doubted myself back then." Johnson and Chastine often spent time together, playing basketball or riding in Chastine’s car. When Johnson learned of Chastine’s death, he ran from his home and cried uncontrollably. Johnson earned two All-State honors during his high school career and was considered the best high school player ever from Michigan at the time. He was also named to the first McDonald’s All-American team, which played in the 1977 Capital Classic.

College career

Johnson received offers from top colleges like Indiana and UCLA but chose to attend a school near his home. He had to decide between Michigan and Michigan State in East Lansing. He selected Michigan State after coach Jud Heathcote told him he could play the point guard position. The strong team already at Michigan State also influenced his decision.

Johnson did not plan to play professionally at first. Instead, he focused on his communication studies major and aimed to become a television commentator. As a freshman, he played alongside future NBA players Greg Kelser, Jay Vincent, and Mike Brkovich. He averaged 17.0 points, 7.9 rebounds, and 7.4 assists per game. He helped the Spartans achieve a 25–5 record, win the Big Ten Conference title, and qualify for the 1978 NCAA tournament. The team reached the Elite Eight but lost to Kentucky, the eventual national champion.

During the 1978–79 season, Michigan State again qualified for the NCAA tournament. They advanced to the championship game and faced Indiana State, led by senior Larry Bird. In the most-watched college basketball game ever, Michigan State defeated Indiana State 75–64. Johnson was named Most Outstanding Player of the Final Four. He was selected to the 1978–79 All-American team for his performance that season. After two years in college, during which he averaged 17.1 points, 7.6 rebounds, and 7.9 assists per game, Johnson entered the 1979 NBA draft. Jud Heathcote stepped down as coach of the Spartans after the 1994–95 season. On June 8, 1995, Johnson returned to the Breslin Center to play in the Jud Heathcote All-Star Tribute Game. He scored 39 points, leading all players in the game.

Professional career

In 1979, Johnson was chosen first overall by the Los Angeles Lakers. He said the most exciting part of joining the Lakers was playing with Kareem Abdul-Jabbar, the team's 7 feet 2 inches tall center who later became the NBA's all-time leading scorer. Although Abdul-Jabbar was a great player, he had not won a championship with the Lakers, and Johnson was expected to help the team achieve that goal. Johnson wore number 32 with the Lakers because number 33, which he had worn at Michigan State, was already taken by Abdul-Jabbar. Lakers coach Jack McKinney had Johnson, a 6-foot-9-inch rookie, play as a point guard even though Norm Nixon, the team's current point guard, was one of the best in the league. Johnson averaged 18.0 points, 7.7 rebounds, and 7.3 assists per game that season. He was selected to the NBA All-Rookie Team and named an NBA All-Star Game starter.

The Lakers had a 60–22 regular-season record and reached the 1980 NBA Finals, where they faced the Philadelphia 76ers, led by forward Julius Erving. The Lakers led the series 3–2, but Abdul-Jabbar injured his ankle in Game 5 and could not play in Game 6. Coach Paul Westhead, who had replaced McKinney earlier in the season, decided to start Johnson at center in Game 6. Johnson scored 42 points, grabbed 15 rebounds, made 7 assists, and had 3 steals in a 123–107 win, playing guard, forward, and center at different times during the game. Johnson became the only rookie to win the NBA Finals MVP award, and his performance was considered among the best in NBA history. He also became one of four players to win NCAA and NBA championships in consecutive years.

Early in the 1980–81 season, Johnson missed 45 games after tearing cartilage in his left knee. He later said his recovery was the "most down" he had ever felt. Johnson returned before the 1981 playoffs, but the Lakers' assistant coach and future head coach, Pat Riley, said Johnson's return caused the team to become divided. The 54-win Lakers faced the 40–42 Houston Rockets in the first round of the playoffs, where Houston upset the Lakers 2–1 after Johnson missed a last-second shot in Game 3.

In 1981, Johnson signed a 25-year, $25 million contract with the Lakers (equivalent to $89,000,000 in 2025), the highest-paying contract in sports history at the time. Early in the 1981–82 season, Johnson had a disagreement with coach Paul Westhead, who Johnson said made the Lakers "slow" and "predictable." After Johnson asked to be traded, Lakers owner Jerry Buss fired Westhead and replaced him with Riley. Although Johnson denied being responsible for Westhead's firing, he was booed by fans across the league, including Laker fans. Buss was also unhappy with the team's offense and had planned to fire Westhead before the dispute, but assistant GM Jerry West and GM Bill Sharman convinced him to delay the decision. Despite these challenges, Johnson averaged 18.6 points, 9.6 rebounds, 9.5 assists, and a league-high 2.7 steals per game. He was voted to the All-NBA Second Team and joined Wilt Chamberlain and Oscar Robertson as the only NBA players to reach 700 points, 700 rebounds, and 700 assists in the same season. The Lakers advanced through the 1982 playoffs and faced Philadelphia again in the 1982 NBA Finals. After a triple-double from Johnson in Game 6, the Lakers defeated the Sixers 4–2, and Johnson won his second NBA Finals MVP award. During the series, Johnson averaged 16.2 points, 10.8 rebounds, 8.0 assists, and 2.5 steals per game. Johnson later said his third season was when the Lakers first became a great team, and he credited their success to Riley.

During the 1982–83 NBA season, Johnson averaged 16.8 points, 10.5 assists, and 8.6 rebounds per game, earning his first All-NBA First Team nomination. The Lakers reached the Finals again and faced the Sixers for the third time in three years. The Sixers had center Moses Malone and forward Julius Erving. However, injuries to Johnson's teammates, including Norm Nixon, James Worthy, and Bob McAdoo, caused the Lakers to lose the series 4–0. Malone was named Finals MVP, and Johnson averaged 19.0 points, 12.5 assists, and 7.8 rebounds per game in the loss.

Before Johnson's fifth season, Jerry West, who had become the Lakers' general manager, traded Nixon to free Johnson from sharing ball-handling responsibilities. Johnson averaged another double-double season, with 17.6 points, 13.1 assists, and 7.3 rebounds per game. The Lakers reached the Finals for the third year in a row, where Johnson's Lakers faced Larry Bird's Celtics for the first time in the postseason. The Lakers won the first game and led by two points in Game 2 with 18 seconds remaining, but after a layup by Gerald Henderson, Johnson missed a shot before the final buzzer, and the Lakers lost 124–121 in overtime. In Game 3, Johnson responded with 21 assists in a 137–104 win, but he made several crucial errors late in Game 4. In the final minute of Game 4, Johnson's ball was stolen by Celtics center Robert Parish, and he missed two free throws that could have won the game. The Celtics won Game 4 in overtime, and the teams split the next two games. In the decisive Game 7 in Boston, as the Lakers trailed by three points in the final minute, Celtics point guard Dennis Johnson stole the ball from Johnson, ending the series. Friends Isiah Thomas and Mark Aguirre comforted Johnson that night, talking until morning in his hotel room while fans celebrated on the street. During the Finals, Johnson averaged 18.0 points, 13.6 assists, and 7.7 rebounds per game. Johnson later described the series as "the one championship we should have had but didn't get."

In the 1984–85 regular season, Johnson averaged 18.3 points, 12.

Rivalry with Larry Bird

Johnson and Bird became rivals after Johnson’s Michigan State Spartans team beat Bird’s Indiana State Sycamores team in the 1979 NCAA finals. Their rivalry continued in the NBA, reaching its peak when Boston and Los Angeles faced each other in three of four NBA Finals from 1984 to 1987. The Lakers won two of those three Finals. Johnson said the 82-game regular season felt like 80 normal games and two important Lakers vs. Celtics games. Bird admitted he checked Johnson’s daily game statistics first thing in the morning.

Some journalists suggested the Johnson–Bird rivalry was popular because it showed many differences, such as the competition between the Lakers and Celtics, between the flashy style of the Los Angeles team ("Showtime") and the hardworking style of the Boston and Indiana teams ("Celtic Pride"), and between Black and white players. This rivalry helped the NBA gain attention during a time when the league was struggling. Before Johnson and Bird joined the NBA, the league had experienced a decade of declining interest and low television ratings. Their success brought a new generation of fans to the NBA, attracting people who liked Bird’s style of playing on gritty courts and those who admired Johnson’s showy style. According to sports journalist Larry Schwartz of ESPN, Johnson and Bird helped save the NBA from financial failure.

Even though they were rivals on the court, Johnson and Bird became close friends during the filming of a 1984 Converse shoe commercial that showed them as enemies. In 1992, Johnson attended Bird’s retirement ceremony and called Bird a "friend forever." At Johnson’s Hall of Fame ceremony, Bird officially welcomed him into the Hall of Fame.

In 2009, Johnson and Bird worked with journalist Jackie MacMullan on a non-fiction book titled When the Game Was Ours, which described their rivalry and friendship. The next year, HBO created a documentary about their rivalry called Magic & Bird: A Courtship of Rivals, directed by Ezra Edelman.

Legacy

Magic Johnson played in 905 NBA games. He scored 17,707 points, grabbed 6,559 rebounds, and made 10,141 assists. This means he averaged 19.5 points, 7.2 rebounds, and 11.2 assists per game. His 11.2 assists per game is the highest in NBA history. Johnson holds the record for the most assists in a single playoff game (24) and the most assists in a Finals game (21). He also has the most assists in playoff games (2,346). He is the only player to average 12 assists in an NBA Finals series, and he did this six times. Johnson holds the record for the most assists in a single All-Star Game (22) and the most career assists in All-Star Games (127). He is one of only eight basketball players to win an NCAA championship, an NBA championship, and an Olympic gold medal.

Johnson played a fast-paced style of basketball called "Showtime." This style includes quick passes, precise alley-oop shots from far away, and creative passes to teammates. A teammate once said, "Sometimes I wasn’t sure where Magic was, but then one of our players caught the ball and scored, and I ran back up the court thinking he must have thrown it through someone." Johnson could control a game even if he didn’t score much, by passing the ball and leading the team. In the 1982 NBA Finals, he was named the Finals MVP, even though he averaged only 16.2 points, the lowest average for a Finals MVP since the three-point shot was introduced.

Johnson was unusual because he played point guard, a position usually for shorter players, even though he was 6 feet 9 inches tall (2.06 meters). He had 138 games where he recorded at least 10 points, 10 rebounds, and 10 assists, which is the fourth-highest total in NBA history. He is the only player in NBA Finals history to have triple-doubles in multiple games that decided a series.

For his achievements, Johnson was named one of the 50 Greatest Players of All Time by the NBA in 1996. He was also selected to the NBA 75th Anniversary Team in 2021. The Naismith Memorial Basketball Hall of Fame inducted him in 2002. ESPN ranked him No. 17 in their list of the 50 Greatest Athletes of the 20th Century. ESPN also named him the greatest point guard of all time, saying, "It could be argued that he was better than Michael Jordan." Bleacher Report also ranked him first among all-time point guards. In 2022, to celebrate the NBA’s 75th anniversary, The Athletic named Johnson the fifth greatest player in NBA history and the top point guard. Some of his game highlights are among the NBA’s greatest moments. In 2019, Johnson won the NBA Lifetime Achievement Award, which he shared with Larry Bird. In 2022, the NBA started awarding MVPs for conference finals. The Western Conference Finals MVP trophy is named after Johnson, and the Eastern Conference Finals MVP trophy is named after Bird.

Awards and honors

Basketball Triple Crown

• 5× NBA champion (1980, 1982, 1985, 1987, 1988)
• 3× NBA Most Valuable Player (1987, 1989, 1990)
• 3× NBA Finals MVP (1980, 1982, 1987)
• 9× All-NBA First Team (1983–1991)
• All-NBA Second Team (1982)
• 12× NBA All-Star (1980, 1982–1992)
• 2× NBA All-Star Game MVP (1990, 1992)
• McDonald's Open winner (1991)
• McDonald's Open MVP (1991)
• J. Walter Kennedy Citizenship Award (1992)
• NBA Lifetime Achievement Award (2019)
• 4× NBA assists leader (1983, 1984, 1986, 1987)
• 2× NBA steals leader (1981, 1982)
• 6× NBA Player of the Month
• 18× NBA Player of the Week
• Named one of the 50 Greatest Players in NBA History in 1996
• Selected on the NBA 75th Anniversary Team in 2021
• IBM Award (1983–84)
• NBA All-Star Weekend Shooting Stars Competition winner (2004)
• No. 32 retired by the Los Angeles Lakers
• Statue in front of Crypto.com Arena
• Trophy named in Johnson's honor (Earvin "Magic" Johnson Trophy) awarded to Western Conference Finals MVP (established in 2022)

• Olympic gold medal winner (1992)
• Tournament of the Americas gold medal winner (1992)

• 2× Big Ten champion (1978, 1979)
• NCAA national championship (1979)
• NCAA basketball tournament Most Outstanding Player (1979)
• Chicago Tribune Silver Basketball Award (1979)
• Consensus first-team All-American (1979) AP first-team All-American (1979) USBWA first-team All-American (1979) NABC first-team All-American (1979) UPI first-team All-American (1979)
• NABC second-team All-American (1978)
• AP third-team All-American (1978)
• UPI third-team All-American (1978)
• 2× first-team All-Big Ten (1978, 1979)
• No. 33 retired by Michigan State Spartans
• Statue at Michigan State

• 1977 Michigan high school state champion (Lansing Everett High School)
• First-team Parade All-American (1977)
• McDonald's All-American (1977)
• Mr. Basketball of Michigan (1977)

• Michigan Sports Hall of Fame – Class of 1998
• Star on the Hollywood Walk of Fame – 2001
• 2× Naismith Memorial Basketball Hall of Fame inductee: Class of 2002 – individual Class of 2010 – member of "The Dream Team"
• National Collegiate Basketball Hall of Fame – Class of 2006
• FIBA Hall of Fame – Class of 2017 (as a member of "The Dream Team")
• U.S. Olympic Hall of Fame – Class of 2009 (as a member of "The Dream Team")
• California Hall of Fame – Class of 2011

• 5× NBA champion (2000, 2001, 2002, 2009, 2010) — as part owner/executive of the Los Angeles Lakers
• WNBA champion (2016) — as part owner of the Los Angeles Sparks
• 3× World Series champion (2020, 2024, 2025) — as part owner of the Los Angeles Dodgers
• MLS Cup champion (2022) — as part owner of Los Angeles FC

Media and entertainment

• Sporting News NBA MVP (1987)
• Sporting News NBA 1980s All-Decade First-Team
• AP NBA 1980s All-Decade Team
• NAACP Image Awards – Jackie Robinson Sports Award (1992)
• Grammy Award for Best Spoken Word or Non-Musical Album (1993)
• Marca Leyenda (2002)
• Harold & Carole Pump Foundation – Lifetime Achievement Award (2009)
• Sports Illustrated's Muhammad Ali Legacy Award (2014)
• MLB Beacon of Hope Award (2015)

• Presidential Medal of Freedom, United States (January 4, 2025)
• Ripple of Hope Award, United States, December 9, 2025

Executive career

On February 21, 2017, Johnson took over from Jim Buss as the president of basketball operations for the Los Angeles Lakers. During Johnson's leadership, the Lakers tried to trade away current players, including future All-Star D'Angelo Russell, to create space to sign new players under the league's salary cap. The team signed LeBron James to a four-year contract in 2018, but attempts to trade for Anthony Davis during the 2018–19 season were not successful. The Lakers did not qualify for the playoffs during Johnson's time as president. On April 9, 2019, Johnson unexpectedly held a news conference and announced his resignation from the Lakers, explaining that he wanted to return to his role as an NBA ambassador.

Team ownership

In January 2012, Johnson worked with Guggenheim Partners and Stan Kasten to try to buy the Los Angeles Dodgers baseball team. In March 2012, Johnson’s group was chosen as the winner of the process to purchase the Dodgers. The group, which also included movie executive Peter Guber, paid $2 billion for the team. Johnson is the main public figure for the group, while Mark Walter is the main owner. The Dodgers won the World Series in 2020, 2024, and 2025.

Johnson and Guber were also partners in the Dayton Dragons, a Class-A minor league baseball team in Dayton, Ohio. The team sold out more than 1,000 games in a row, a record for professional sports. Johnson and Guber sold their share of the Dragons in 2014. Along with Guggenheim, Johnson helped buy the Los Angeles Sparks of the WNBA in 2014. Because of this, Johnson was named one of ESPNW’s Impact 25 in 2014. He won the WNBA championship as the owner in 2016. Johnson co-owned a Major League Soccer (MLS) expansion team, Los Angeles FC, which started playing in 2018 and won the MLS Cup in 2022.

In 2023, Johnson invested $240 million in a group led by Josh Harris that bought the Washington Commanders of the National Football League (NFL) for $6.05 billion. A lifelong NFL fan, Johnson called it a "dream" and his greatest business achievement. Before this, Johnson had discussed buying the Miami Dolphins and Las Vegas Raiders but joined Harris on an unsuccessful attempt to buy the Denver Broncos in 2022. In September 2024, Johnson became part of the ownership group for the Washington Spirit of the National Women’s Soccer League (NWSL).

Personal life

In 1981, Magic Johnson became a father for the first time when his son, Andre Johnson, was born to Melissa Mitchell. Andre was raised by his mother, but he visited Johnson every summer and later worked for Magic Johnson Enterprises as a marketing director.

In 1991, Johnson married Earlitha "Cookie" Kelly in a small ceremony in Lansing. Guests at the wedding included Thomas, Aguirre, and Herb Williams. Johnson and Cookie have one son, Earvin III ("EJ"), who is openly gay and appears on the reality show Rich Kids of Beverly Hills. The couple also adopted a daughter named Elisa in 1995. Johnson lives in Beverly Hills and owns a vacation home in Dana Point, California.

Johnson is a Christian and has said that his faith is "the most important thing" in his life.

Johnson had a close relationship with Lakers owner Jerry Buss, who he considered a mentor and father figure. He called Buss his "second father" and "one of [his] best friends." Johnson visited Buss in the hospital for five hours just months before Buss died from cancer in 2013. After Buss died, Johnson said, "Without Dr. Jerry Buss, there is no Magic." Buss acquired the Lakers in 1979, shortly before drafting Johnson with the first pick in the 1979 NBA draft. Buss introduced Johnson to important business contacts in Los Angeles and taught him how the Lakers organization worked. In 1994, Buss sold Johnson a share in the team. Johnson credits Buss with teaching him the business skills that helped him become a part owner of the Los Angeles Dodgers.

Buss supported Johnson when he revealed his HIV diagnosis in 1991. Buss kept Johnson close to the Lakers organization, even making him a part-owner and a coach. Johnson had never considered coaching before, but he agreed to take the head coaching job with the Lakers in 1994 at Buss' request. In 1992, Buss gave Johnson a contract that paid him $14 million a year as compensation for not being the league's highest-paid player. Although Johnson retired before the 1992–93 NBA season, Buss insisted Johnson still be paid. This arrangement allowed Johnson to coach without receiving extra money. After Johnson finished coaching, Buss sold him a 4% share in the Lakers for $10 million, and Johnson worked as a team executive.

In 1997, Johnson's production company, Magic Johnson Entertainment, signed a deal with Fox. In 1998, Johnson hosted a late-night talk show on Fox called The Magic Hour, but the show was canceled after two months due to low ratings. Soon after, Johnson started a record label. The label, initially called Magic 32 Records, was renamed Magic Johnson Music in 2000 after Johnson partnered with MCA. Magic Johnson Music signed R&B artist Avant as its first act. Johnson also helped promote Janet Jackson's Velvet Rope Tour through his company, Magicworks. He has worked as a motivational speaker and was an NBA commentator for Turner Network Television for seven years before becoming a studio analyst for ESPN's NBA Countdown in 2008.

Johnson runs Magic Johnson Enterprises, a company worth $700 million. Its parts include Magic Johnson Productions, a promotional company; Magic Johnson Theaters, a chain of movie theaters; and Magic Johnson Entertainment, a film studio. In 2006, Johnson created a food service partnership with Sodexo USA called Sodexo-Magic. In 2004, Johnson and his partner Ken Lombard sold Magic Johnson Theaters to Loews Cineplex Entertainment. The first Magic Johnson Theater in Baldwin Hills Crenshaw Plaza closed in 2010 but reopened in 2011 as Rave Cinema 15. In 2012, Johnson launched a cable TV network called Aspire, which targets Black audiences, similar to networks like BET and TV One.

Johnson began thinking about life after basketball while still playing for the Lakers. He wondered why many athletes failed in business and sought advice. During his seventh NBA season, he met with Michael Ovitz, CEO of Creative Artists Agency. Ovitz encouraged Johnson to read business magazines and use his connections. Johnson learned about business by meeting corporate leaders during road trips. His first business venture, a high-end sporting goods store called Magic 32, failed after one year, costing him $200,000. This experience taught him to listen to customers and understand their needs. Johnson has become a leader in investing in urban communities, creating redevelopment projects through his movie theaters and a partnership with Starbucks. He showed Starbucks CEO Howard Schultz the buying power of minorities and helped open 125 Starbucks stores in cities like Detroit, Washington, D.C., Harlem, and the Crenshaw District of Los Angeles. The partnership, called Urban Coffee Opportunities, ended in 2010 when Johnson sold his shares back to Starbucks. He also invested in urban real estate through the Canyon-Johnson and Yucaipa-Johnson funds. Another major project was with insurance company Aon Corp. In 2005–2007, Johnson was part of a group that bought the Williamsburgh Savings Bank Tower in Brooklyn for $71 million and converted it into luxury condos. According to Forbes, Johnson became a billionaire in 2023, making him one of the richest celebrities.

In 1990, Johnson and Earl Graves Sr. gained a large interest in the Washington, D.C. PepsiCo bottling operation, making it the company's largest minority-owned facility in the U.S. Johnson became a minority owner of the Lakers in 1994, paying more than $10 million for part ownership. He also held the title of team vice president. In 2010, Johnson sold his Lakers ownership to Patrick Soon-Shiong, a Los Angeles surgeon and UCLA professor, but remained an unpaid vice president. In 2017, Johnson returned to the Lakers as an advisor to Jeanie Buss.

After the Donald Sterling controversy, limited media reports suggested Johnson was interested in buying the Los Angeles Clippers franchise.

In 2015, Johnson completed his planned acquisition of a "majority, controlling interest" in EquiTrust Life Insurance Company, which manages $14.5 billion in financial products.

He is an investor in aXiomatic eSports, the ownership company of Team Liquid.