On the court, Magic Johnson earned all his fame and fortune, which eventually made him a larger-than-life figure. His timeless assists, unmatched basketball IQ and infectious smile defined his playing days during the 80s.
As Johnson rose to stardom, the league was growing into a global brand. And while many young players might have fallen into the celebrity trap, especially playing in Los Angeles for the Lakers , Magic was built differently, as he recalled a life-changing moment when Dr. Jerry Buss introduced him to a businessman named Michael Ovitz.
"I reached out to Michael Ovitz and said, 'Hey, I would like to take a meeting with you because I wanted to become a businessman after my playing career is over,'" Magic said in an interview with "a16z". "I go to his office, he shakes my hand, and the first thing he says, 'I don't know about representing you. Athletes spend more money than they make. I don't know if you're serious. I don't know if you have what it takes to become a businessman.'"
"He threw me out. So a couple weeks later, he calls back and says, 'I checked you out. Dr. Buss told me that you are serious.' He says, 'Come back.' And I came back, and he had a stack of magazines. He says, 'You read these, and I'm going to give you a test. If you pass the test after reading all these magazines, then I'll think about representing you,'" Magic added.
Ovitz was one of Hollywood's most powerful dealmakers in the 1980s, co-founder of Creative Artists Agency, which he turned into an industry heavyweight. He pioneered the modern super-agent model, packaging films by bundling actors, directors and scripts into major studio deals. Few executives had more influence over what got made and who got paid during that period of time.
A Chicago native was moving in the same high-level L.A. circles as Magic and Dr. Buss when the Lakers were at their peak. And while he may not have been calling plays, he understood star power and how to turn it into business. The interesting part about this story is that Johnson's first interaction with Ovitz began with a convo in the middle of a game .
"It is a funny story how that meeting came about," Johnson told Inc.com. "During a Lakers game, I was standing on the sidelines getting ready to pass the ball inbounds. There were two businessmen I respect sitting courtside, next to me..."
"So, I looked over before I threw the pass inbounds and asked, 'How do I get into business?' It probably wasn't the best place to ask, but they could tell I was honestly looking for help, so later they arranged for me to meet [Creative Artists Agency founder] Michael Ovitz," he continued.
The rest is history as Ovitz negotiated deals with Pepsi and Starbucks, and later revised Magic's groundbreaking 25-year, $25 million contract as the league's popularity grew.
"When he did that, I asked, 'How much do I owe you?' and he said, 'I don't want anything from you,'" Magic recalled. "That's who Michael Ovitz is, and I wouldn't be who I am today without him. Everything he did for me, making me smarter, helping me understand business and dealmaking, and making sure I asked questions and truly learned, was huge. He was big on making sure you had the knowledge."
By the late 1990s, Ovitz had helped remake Magic's business ventures, and off the court, the five-time NBA champion's influence grew alongside his financial empire.
Although Magic earned around $20 million during his playing career, his net worth today is estimated at $1.6 billion, according to " Forbes ". Some of his most famous deals involve Coca-Cola and Starbucks. His companies, Magic Johnson Enterprises and Magic Johnson Theaters, have also contributed significantly to his wealth.
Ovitz recognized early on that the young athlete with extraordinary charisma had the potential to become a brilliant businessman. And, safe to say, he wasn't wrong.
This story was originally published by Basketball Network on Feb 21, 2026, where it first appeared in the Off The Court section. Add Basketball Network as a Preferred Source by clicking here.
