Retired star financial management has been in trouble, but he only earned 300 million with 10 million, which is a textbook-level operation

In 1994, Magic Johnson, who had just retired for two years, did something that everyone couldn't understand - he took out $10 million and bought a 4.5% stake in the Los Angeles Lakers.

At that time, the Lakers' market value was only $220 million; who could have thought? 27 years later, the Lakers' market value has risen to $7.1 billion. In this way, the shares, which accounted for only 4.5%, suddenly soared to 320 million.

Jordan spent 175 million to buy the Bobcats, earning 180% in 11 years. This operation of the Magician actually directly raised the ceiling of star investment by several levels.

How awesome is the Lakers' business empire?

Home Staples Center has an annual revenue of US$120 million, jersey advertising and game broadcasts, and the surrounding areas are selling so hot. The 4.5% stake in the magician's hands doesn't seem to be much, but it seems like he is holding a tv printing machine. The year the Lakers won the championship in 2020, the dividend alone exceeded $15 million, and it was even more ruthless than the 170 million salary he earned in 19 years of his entire player career.

Moreover, the Lakers' market value shows an 18% growth trend every year, which is 6 percentage points faster than the average growth rate of NBA teams. This is actually an extremely reliable value-added tool.

Looking at the same period of star investment, O'Neal, who lost money to bankruptcy in real estate; Pippen was cheated of money by financial management companies; the magician's operation is actually textbook-level.

When he bought the Lakers shares in 1994, it was precisely when the "Showtime" dynasty had just collapsed, and others thought that the Lakers were no longer able to do it, but he firmly believed that "the Lakers' golden sign will not fall."

The baseball team invested by Jordan was later disbanded. Kobe and Duncan only started buying shares in the team in 2004, and the Magicians' shares had risen 10 times at that time, and this vision was really ahead of the previous 10 years.

In 2010, the Magician suddenly sold his shares for 50 million. Many people said that he had lost a lot. After all, the Lakers' market value later rose to 7.1 billion, and he missed at least 270 million.

In fact, there are difficulties behind it: at that time, his catering chain was expanding and urgently needed 200 million cash, so he could only bear the pain of cashing out; and his eldest son EJ came out publicly, hoping to put more assets into the family trust to protect the lives of his children; in addition, he caught up with the 2008 financial crisis, and he mistakenly judged the growth of the Lakers' market value, but unexpectedly, he ushered in a capital carnival later.

After selling the Lakers shares, the Magician's business territory has become larger and larger.

He holds 24 hours of fitness and owns 10% of his shares. The fitness company has a valuation of 150 million yuan; in Starbucks, it has 120 franchised stores, with annual revenue of 80 million yuan; in his hometown of Michigan, he invested 500 million yuan to build a medical center, but with his reputation as a star, he slightly reduced operating costs; he authorized the brand "Magic" to 37 categories, with an annual licensing fee of more than 20 million yuan.

From the court to the mall, his business empire is getting bigger and bigger, with a net worth of more than 1 billion.

In 1994, there was a particularly special place in that deal, and the Lakers boss Jerry Buss actually broke the rules and allowed the Magic to invest at a "employee discounted price."

At that time, most of the NBA teams were in the hands of the consortium, and the stars generally held less than 1% of the shares, but Bass gave the Magician 4.5% and also included a clause that could be repurchased at a premium within 10 years.

This "boss and stars co-governance" model was 16 years earlier than the Warriors made Curry a minority shareholder in 2010, and it was simply the most humane deal in NBA history. It seems to have a unique charm, which makes people sigh at its advanced nature and humanity.

If the Magician did not sell his shares in 2010, by 2023, the Lakers' market value will reach 5 billion, and his 4.5% stake will be worth 225 million, and the cumulative dividends in 27 years are conservatively estimated to be 80 million, with a total return of more than 300 million, which is equivalent to making $35,000 easily every day.

Although it is not as good as the 270 million rumored online, it is absolutely fine to buy shares of a downstream NBA team. For example, the Pistons, with a market value of 1.2 billion, can easily acquire 18% of its shares. The investment legend of the magician is ultimately an accurate judgment of scarce resources. Los Angeles is the global business center. The Lakers have a 70-year team history and won 17 championships during this period. Its brand value is unmatched. Moreover, the identity dividends brought by the team's totem can get a 30% premium in negotiations than ordinary investors. The leap from tens of millions to billions depends on luck, but on the grasp of the timing, trust in the brand, and a keen sense of business.

In an environment where NBA star investment often "continuously" hits pitfalls, the success of the Magician is particularly "specially" dazzling.

He wrote his own wealth myth with 4.5% of the shares, and also taught later stars a vivid financial management class: investment is not about following the trend, but about finding out the value, daring to take action, and having a long-term vision.

When looking at this legend now, I have to admire the Magician not only plays well, but also has first-class business acumen, and can be regarded as the ceiling of star financial management.