Forbes has named Magic Johnson a billionaire, making him only the fourth athlete to enter the exclusive club, following Michael Jordan, LeBron James, and golfer Tiger Woods.
Johnson’s fortune is estimated to be $1.2 billion (£990 million) by Forbes.
Magic’s fortune has soared since his retirement in 1996. He has investments in a variety of businesses, including ownership stakes in several sports teams.
According to Forbes, the majority of his wealth is held by his investment in a life insurance company.
According to Forbes, Magic has increased the company’s total assets from $16 billion to $26 billion, with annual revenues hovering around $2.6 billion.
The 64-year-old had one of the most memorable NBA careers before retiring in 1996, but he generated the majority of his money outside of sports.
His investments outside of basketball have paid off, clearing the path for the five-time NBA champion to join the 10-figure club.
The three-time NBA MVP owns three Los Angeles-area sports franchises, including the Los Angeles Dodgers of Major League Baseball.
Aside from athletics, he has investments in Starbucks, Burger King, 24 Hour Fitness, and the EquiTrust life insurance company.
Johnson made $40 million over his 13-year tenure with the Lakers, compared to LeBron’s $480 million and Jordan’s $94 million.
Johnson stated earlier this year that he could have been a billionaire sooner if he had not turned down Nike stock when he first entered the NBA in the 1970s. Instead, he accepted a contract with Converse that paid him $100,000 per year.
“My family didn’t come from money, that’s one thing that hurt us sometimes. When you don’t come from money, you don’t know. I didn’t even know what stocks [were] at that time,” Johnson said on the All The Smoke podcast.
“So I passed on the stocks. Can you imagine? 45 years, $5 billion that stock would have been worth today.”