On the basketball court, there was no point guard like Magic Johnson. Off the court, Magic was a pioneering entrepreneur.

In 1984, after winning his first championship with the Lakers, Magic Johnson signed a 25-year lifetime contract for $1 million a year. At the time, it was the most extended and most lavish contract in the history of sports. The agreement included all of the services Magic would provide as a player and after he retired as a coach, GM, or other capacities for the Laker organization.

At that time, there were only three players in the NBA that were earning a million dollars a year. Those included the great Kareem Abdul-Jabbar and Moses Malone. If you adjust for inflation, Magic’s payday amounts to $62 million for a lifetime of service of the NBA’s most significant point guard to the Laker organization.

However, his competitive nature went past the basketball court and into the world of business. After retiring, Magic bought a 4.5% ownership state in the Lakers for a reported $10 million. In 2010, it was sold for almost $100 million.

Unlike most retired athletes, though, Magic’s business ventures went beyond the sports industry.

After winning championships with the LA Lakers, Magic turned to assisting south LA to recover economically. While most investors would not go near urban America, Magic invested in south LA to provide places and businesses for residents to spend their disposal income.

One of Magic Johnson’s first projects was Magic Johnson Theatres. To make the project successful, Magic masterfully brokered cooperation with gangs and people in those communities. He was well respected, and he was able to connect with those communities to help get local gang members involved in his construction project.

Magic’s theater project was just the first quarter for his business career, and his operations were successful; it was clear that Magic understood the communities of urban America better than anybody. As a business owner, Magic owned and controlled his businesses the way he managed the tempo of a basketball game.

In 1998, Johnson Development partnered with Starbucks Coffee Company to create Urban Coffee Opportunities. By partnering with Starbucks CEO George Shultz, Magic brought Starbucks to urban America. At that time, Magic was the first franchisee in the history of starbucks, and he retrofitted the coffee chain to fit the communities it served. The project was a slam dunk. Johnson ended up building 125 locations in Urban areas. In 2010, Magic sold his Starbucks shares and made a reported $75 million when Starbucks bought back ownership of his locations.

Magic’s philosophy was simple: instead of residents of urban communities traveling outside of their community, they could spend their money in their own communities. In 1998, Johnson Development Corporation began a partnership with Canyon Capital Realty Advisors to form the Canyon-Johnson Urban Fund. The fund focused on developing urban properties in underserved neighborhoods.

Just like he assisted Kareem Abdul Jabar and helped him become the leading scorer in NBA history, Magic’s success proved the viability of investing in urban America. After selling his ownership shares in the Lakers and Starbucks, Magic’s business success began a fast break that he took to new heights, including a partnership with Burger King Corporation that resulted in him opening 29 restaurants. Nearly all of businesses were successful.

Despite his success in business ventures outside of sports, Magic continued to establish himself as a leader in the sports industry. This included a stint working as a broadcaster for ESPN, investments in Vibe, and launching of the TV network ‘ASPiRE.’ In 2012, Magic Johnson joined Guggenheim in a $2 billion purchase of the Los Angeles Dodgers baseball team. Following the acquisition, a group started by Magic bought the WNBA’s Los Angeles Sparks.

Magic’s success as a business person was not just due to his celebrity.

Unlike most other successful athletes, Magic’s business career did not focus solely on sports. And while most professional athletes have limited financial success after they retire, Magic was an exception (the list of professional athletes that went bankrupt after they retire include Michael Vick, Terrell Owens, and Mike Tyson).

His cerebral play on the court ultimately translated well into his business ventures as Magic’s game was built on fire, not flash. However, a little flash or Magic in his game never hurt. Magic is probably the smartest basketball player ever, and it shows well after his career came to an end. If Magic Johnson were 5’9,” his personality, work ethic, and intelligence would have enabled him to still be a billionaire.

In 2017, Magic went back into basketball and was named the President of Basketball Operations for the Los Angeles Lakers in a role Genie Bus created for him. Magic Johnson made the Lakers relevant again, and his business empire undoubtedly helped get Lebron James out to the Lakers.

According to legend Steve Carvery:

“Lebron James is a genius as a businessman…If you don’t think our friend Magic Johnson, who is another incredible businessman, said to him come out here and play with us, you will be sitting next to me. And Magic is making more money in business than all of us.”

Magic later departed from the role to run his businesses full-time. Today, after retiring from the NBA 20 years ago, Magic Johnson Enterprises is recognized as an investment conglomerate worth over a billion dollars. Ultimately, Magic may end up being better known for his career in business than on a basketball court. For his career, Magic Johnson was successful because he made the players, business partners, and communities around him better.