NBA legend Magic Johnson shares HEAVY REGRET of losing $5 billion worth of stocks to a life-changing decision

Magic Johnson reveals how he missed out on a huge investment opportunity that could have made him one of the richest athletes ever.

NBA legend Magic Johnson shares HEAVY REGRET of losing $5 billion worth of stocks to a life-changing decision

Magic Johnson (Via GETTY IMAGES/ROB TRINGALI)

Magic Johnson is not only the greatest point guard of all time, but also one of the most influential figures in NBA history. His epic battles with Larry Bird and the Celtics in the 1980s elevated the league to new heights of popularity and prestige. But Magic’s brilliant career was cut short by a shocking diagnosis: he had contracted HIV, the virus that causes AIDS.

Johnson retired from the game in 1991, leaving behind a legacy of excellence and a fortune of about $40 million. But he also missed out on a huge opportunity that could have made him billions more. In a recent episode of Showtime Basketball’s “All The Smoke,” Magic revealed his biggest regret to hosts Matt Barnes and Stephen Jackson.

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Barnes brought up the Nike deal, which Johnson refused, which could have landed him generational wealth and made him the richest NBA player ever. He said: “Nike. You were offered a deal, and the estimated worth today would be $5.2 BILLION. I mean, you are doing fine. But talk to us about that Nike situation. The reason why you chose Converse over Nike.”

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Johnson smiled and said, “Thanks a lot, man. So here I am, just winning the national championship against Larry Bird, and three companies came in. So Converse, Adidas, and Nike. Nike was just a year or two old. Converse offered me the most money. So you know when you grow up broke, you take the money.”

Further, Johnson mentioned how his lack of knowledge prevented him from making wise decisions. The HOF added, “Phil Knight came in and said I can’t offer you the same money. But I can offer you stock. Ahh… And I didn’t knew nothing about it. And my family didn’t come from money. … I don’t even what stock is at that time. So I passed on the stocks.”

Those stocks now, after 45 years, would have landed Johnson around $5.2 billion. His net worth is around $620 million, and he’s the third richest NBA player. In retirement, he became one of the best and wise investors while running and owning multiple businesses as a successful entrepreneur.

Related: Magic Johnson FINALLY completes $6 BILLION purchase

Magic Johnson’s deal with Converse

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Magic Johnson for the Los Angeles Lakers (Via ANDREW D. BERNSTEIN/NBAE VIA GETTY IMAGES)

Magic Johnson faced a tough choice when he entered the NBA in 1979. He could either sign with Converse, the dominant sneaker brand at the time, and receive $100,000 for his endorsement, or he could take a chance on a new company called Nike and get a 10% stake in their stock.

Johnson opted for the cash, which was understandable given his background and financial needs.  He later admitted that he didn’t even know what stocks were back then. He might have missed out on a fortune, but he still made a sensible decision with the information he had available.

Magic Johnson played an essential role in Converse’s success, and if he had chosen Nike over them, that’s an entirely different story. But Nike won in the longer race and even acquired Converse in 2003 for only $315 million as they filed for bankruptcy.

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