Earn Your Leisure – Magic Johnson On Becoming A Billionaire, Jordan vs LeBron, & Owning The Dodgers & Commanders (Sept 12, 2025)

Episode Overview

In this landmark episode of Earn Your Leisure, hosts Rashad Bilal and Troy Millings sit down with NBA Hall-of-Famer and business mogul Earvin "Magic" Johnson at Invest Fest Atlanta. The conversation explores Magic’s road to billionaire status, his most influential deals, hard-learned business lessons, and his views on legacy, mentorship, and representation. Magic also weighs in candidly on the Michael Jordan vs. LeBron debate and shares inspirational stories from his ownership of major sports franchises. The episode is packed with wisdom on scaling, ownership, access, and generational wealth.

Key Discussion Points & Insights

1. Overcoming Early Mistakes & the Power of Financial Literacy

• The Converse vs Nike Stock Story ([07:46]–[09:30])
  • Magic recounts how, at 19, he passed up Nike stock for cash from Converse, costing him a would-be $1.5 billion forty-six years later.
  • "When you Black and you broke, you take the most money, right?...Phil Knight said, I can’t offer you as much, but I can give you stock. And I passed on the stock...46 years later, that stock would be worth a billion five." — Magic Johnson ([08:12])
  • Realization came when Michael Jordan’s Nike partnership exploded.
  • Emphasizes being the first generation of wealth and the importance of educating yourself and your family.

2. Competitiveness & Carrying Athletic Mindset Into Business

• Translating Competitiveness ([11:07]–[12:57])
  • Magic shares his daily routine and drive: waking at 4am, working out, and remaining disciplined.
  • "I take that same competitive drive that I had on the basketball court and put it in business...I’m self-motivated. Everything I learned as a basketball player I’ve taken into business." — Magic Johnson ([11:16])
  • Stresses research, discipline, and protecting the brand.

3. Scaling Businesses Without Compromising Quality

• Lessons from Starbucks & Exit Strategy ([14:15]–[16:43])
  • Built Magic Johnson Starbucks from 1 to 125 stores, reinvesting all profits until reaching 50 stores before taking money out.
  • Customization was key: tailored menu and music to fit Black communities.
  • "Where Black folks fail is you make it sometimes about you and your likes—not about what the customer likes. Always make your business about the customer." — Magic Johnson ([19:17])
  • Emphasizes not selling too early: patience leads to higher returns.
  • Example: holding on to the LA Sparks led to major franchise appreciation.

4. Representation, Ownership & Creating Access

• “Seat at the Table” ([23:43]–[25:51])
  • Magic asserts business is not just financial but about power and influence.
  • "It’s not just about the money. It’s about having a seat at the table...when you become successful, you’re able to now have a seat at that table, and then you can help the city change." — Magic Johnson ([23:46])
  • His successes make it easier for those behind him.

5. Investment Evaluation & Building Teams

• Choosing Industries & Teams ([26:08]–[27:44])
  • Researches sectors’ previous five to ten years for growth trends.
  • Importance of hiring expertise, not just family: "Please do not hire your family...unless they have the expertise." ([27:50])

6. Billionaire Status – Vision & Impact

• Hitting the Billionaire List ([30:15]–[33:58])
  • Becoming a billionaire wasn’t the original goal—success and paving the way for others was.
  • Recounts initial struggles with banks and CalPERS; his persistence turned a $100M investment into a billion-dollar empire.
  • "Anything that I’ve done is not just for me, it’s so you can come behind me...when you build your business...you give another young person the opportunity to say, ‘If she made it, or if he made it, I got a chance too.’" — Magic Johnson ([33:10])

7. Lessons from Failures

• Not Every Deal Is a Home Run ([34:18]–[35:57])
  • TGI Fridays in LA and Atlanta – LA was a hit, Atlanta was overwhelming and failed.
  • The takeaway: scale responsibly and learn from missteps.

8. Legacy & Raising Entrepreneurial Children

• Sunglasses & the ‘Business Plan’ Test ([36:16]–[40:24])
  • Magic required his daughter to provide a detailed business plan before investing in her eyewear line, teaching real-world standards.
  • "She hated that I took her through that exercise, but it helped her in the long run...make sure you have a solid business plan." ([39:42])

9. Mentorship, Outgrowing Peer Pressure, and Proximity to Power

• Learning from Dr. Jerry Buss ([40:44]–[45:06])
  • Magic was ostracized by Lakers teammates for befriending owner Jerry Buss, but focused on learning from billionaires rather than staying comfortable.
  • "You guys are millionaires. He’s a billionaire. I’m hanging out with the billionaire because he’s the only guy that can help me go where I want to go...Don’t let your friends say you can’t go." — Magic Johnson ([42:21])

10. Black Ownership in the NFL & the Power of Access

• Buying the Commanders ([45:06]–[55:26])
  • Becoming an NFL owner, especially as a person of color, is "the hardest thing."
  • "See, when you get there, it’s hard to get there, but it’s even harder to stay there...your business, that success, can go just like that." ([47:32])
  • Reminds listeners to put in the work and make sacrifices with family buy-in for business goals (the “three-year rule”).
  • "Everything you should go after should be three years...if you get longer than three years, that means you haven’t put 150% into building this business." ([53:44])

11. Jordan vs. LeBron—Who’s the G.O.A.T.?

• Iconic Perspective ([55:26]–[56:23])
  • Magic gives the edge to Michael Jordan:
    • "Don’t get it twisted. I love LeBron, but no, no, no, no, no...Only thing I beat Michael in is them no-look passes and leadership." — Magic Johnson ([55:51])

12. Dream Team Memories & Learning From Wealth

• Lessons in Monaco ([56:35]–[61:42])
  • Encounters with true wealth (multiple yachts) redefined Magic’s aspirations.
  • "Wealth, wealthy, rich is a whole different thing. And I said, wow, I want to be like him." ([57:13])
  • Advocates for stepping outside your comfort zone for growth and relationships.

13. Earning Your Leisure, Balance & Travel

• Rest, Family & Visioning Success ([61:42]–[64:54])
  • Emphasizes the importance of balancing hard work with family and leisure.
  • The “three-year” vision board method: set three-year goals, get buy-in, and execute.

Notable Quotes & Memorable Moments

• On Equity & Missed Opportunity:

  "I passed on the [Nike] stock, not knowing anything about stock at 19 years old...that stock would be worth today a billion five." — Magic Johnson ([08:12])

• On Scaling and Customer Focus:

  "Always make your business about the customer, and then you’ll get the returns you’re looking for." — Magic Johnson ([19:17])

• On Representation:

  "It’s not just about the money. It’s about having a seat at the table...then you can help the city change." — Magic Johnson ([23:46])

• On Legacy:

  "Anything that I’ve done is not just for me, it’s so you can come behind me." — Magic Johnson ([33:10])

• On Mentorship:

  "Don’t let your friend...say, ‘you can’t go.’ I stayed with [Dr. Buss], and that’s why I’m successful. I took the knowledge he gave me and brought it to the Black community." — Magic Johnson ([42:21])

• On Ownership:

  "See, when you get there, it’s hard to get there, but it’s even harder to stay there...your business, that success can go just like that." — Magic Johnson ([47:32])

• On Jordan vs. LeBron:

  "Don’t get it twisted. I love LeBron, but no, no, no, no, no...Only thing I beat Michael in is them no-look passes and leadership." — Magic Johnson ([55:51])

• On Dream Team & Networking:

  "You keep hanging around the same people, you only gonna get the same results...Get out of your comfort zone." — Magic Johnson ([59:18])

• On Sacrifice and Support Systems:

  "Get buy-in from your partner...I need three years to build our business...if you get longer than three years, you haven’t put 150% into it." — Magic Johnson ([53:44])

Key Timestamps for Major Segments

• [07:46] – Magic’s Converse/Nike stock anecdote
• [11:07] – Competitive mindset in business
• [14:15] – Scaling Starbucks and importance of exit strategies
• [19:17] – Customizing businesses for the customer
• [23:43] – The real impact of ownership and representation
• [30:15] – The journey and meaning of becoming a billionaire
• [34:18] – Learning from failed franchises (TGI Fridays)
• [36:16] – Parenting entrepreneurs and the business plan challenge
• [40:44] – Mentorship and learning from Jerry Buss
• [45:06] – The experience of buying the Commanders (NFL ownership)
• [55:26] – Jordan vs LeBron: Magic’s verdict
• [56:35] – Dream Team memories and lessons from the ultra-wealthy
• [61:42] – The necessity of rest, travel, and the “three-year plan” for success

Conclusion

Magic Johnson’s candid discussion at Invest Fest delivers a masterclass in entrepreneurship, legacy, and wealth-building. His journey from NBA champion to barrier-breaking businessman is full of wisdom: invest in knowledge, never stop learning, value partnerships and mentorship, and hold the door open for those who follow. From billion-dollar deals to real talk about failure, Magic’s story is rich with both challenge and inspiration.

"Always remember, it's enough room for everybody." — Magic Johnson ([54:54])