Magic Johnson Says Passing on Nike Stock Was a Billion-Dollar Mistake
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Los Angeles Lakers legend Earvin “Magic” Johnson revealed he still laments choosing a cash deal from Converse instead of a stock offer from Nike when he entered the NBA in 1979.
Speaking on the “Earn Your Leisure” podcast, Johnson said Nike co-founder Phil Knight proposed equity in the fledgling shoe company while Converse put a larger guaranteed payment on the table. At 19, Johnson opted for the immediate money.
“Converse offered me the most money,” he recalled. “When you’re Black and you’re broke, you take the most money. Phil Knight said, ‘I can’t match that, but I can give you stock.’ I passed on the stock, not knowing anything about it.”
Johnson estimated that the shares he declined 46 years ago would be worth roughly $1.5 billion today. Instead, the Hall of Famer became the public face of Converse throughout the 1980s while winning five NBA championships with the Lakers.
Investor and Team Owner
Although he missed out on the Nike windfall, Johnson has built a substantial business empire. His holdings include minority stakes in the Los Angeles Dodgers, Los Angeles Sparks and Washington Commanders, along with ventures in entertainment, real estate and food service.
Context of the Decision
Lucrative sneaker endorsements were rare when Johnson entered the league, making Converse’s larger upfront payout an attractive, and defensible, option. By comparison, current Lakers star LeBron James signed a lifetime agreement with Nike and recently appeared in the relaunch of the brand’s “Just Do It” campaign.
GOAT Preference
During the same appearance, Johnson reiterated his view that Michael Jordan remains the greatest basketball player of all time, placing him ahead of James in the long-running debate.
Source: Lakers Nation
