Magic Johnson Enterprises

Last updated
Magic Johnson Enterprises
Industry Investing
Founded1987
Founder Magic Johnson
Headquarters United States of America

Magic Johnson Enterprises is an investment company founded by Basketball Hall of Famer and entrepreneur Magic Johnson. [1] The company was founded in 1987 and is based in Beverly Hills, California.

Contents

Magic Johnson Enterprises formerly owned Magic Johnson Theatres and 24-Hour Fitness/Magic Johnson Sport health clubs. Over the years, Magic Johnson Enterprises has continually invested ownership in many lucrative businesses such as the Los Angeles Lakers, movie theaters and restaurants in the United States, including T.G.I. Friday's, Sodexo, and Burger King locations.

Investments

In 1995, Johnson took an equity stake along with what was then the Loews chain in the 12-screen multiplex movie theater in Baldwin Hills (now owned by Cinemark).[ citation needed ]

The company teamed up with Starbucks in 1998, acquiring around 125 stores [2] and in October 2010 sold 105 of the stores in a $100 million deal. [3] [4]

In March 2008, Johnson signed a multi-year marketing deal to help electronics retailer Best Buy Co. bolster sales in urban neighborhoods. [5]

In October 2010, he sold his 4% interest in the Los Angeles Lakers for an estimated $27 million to Patrick Soon-Shiong. [3] [6]

In 2006, the company made headlines for concluding a deal with Sodexo, one of the largest food services and facilities management companies in the world. The initiative includes a marketing agreement and the formation of SodexoMAGIC, LLC, a new joint venture that is 51 percent owned by Johnson. [7]

In June 2015, the company announced it had acquired a controlling interest in EquiTrust Life Insurance Co. [8]

Sports teams

Co-ownership of the LA Dodgers was purchased by Magic Johnson Enterprises in 2012 for a reported $2 billion. [9]

In 2014, Johnson led the purchase of WNBA team, Los Angeles Sparks with Guggenheim Partners. [10] The same year, he became part owner of MLS team, Los Angeles FC. [11]

In 2023, Magic Johnson Enterprises, along with a group of others, purchased the Washington DC–based NFL team Washington Commanders for $6.05 billion. [12]

In September 2024, Johnson invested in Washington DC–based National Women's Soccer League (NWSL) club, Washington Spirit. [13]

Canyon-Johnson Urban Fund

Johnson's urban investments were formed in 2001 as the Canyon-Johnson Urban Fund, [14] an alliance with Canyon Capital. The alliance has financed 31 real estate developments in 13 states and the District Of Columbia. The first Canyon-Johnson Urban Fund struggled for two years to raise $300 million to invest in urban neighborhoods. A subsequent fund raised $600 million while the third and biggest investment fund was started in April 2008 and drew $1 billion from pension funds and other investors. [5] The Canyon-Johnson fund was involved in the $100-million purchase of the 32-story former Transamerica Center complex in downtown Los Angeles that subsequently was renovated and sold for $205 million. The fund also had a stake in Sunset+Vine in Hollywood, which was built for $125 million and sold for $160 million. [5] [15]

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References

  1. ↑ "Magic Johnson Is a Billionaire: 5 Things to Know About His Business Ventures". BET. Retrieved 2024-06-21.
  2. ↑ Molloy, Jessie (2023-05-11). "Starbucks' Partnership With Magic Johnson Paved The Way For Community Stores". Tasting Table. Retrieved 2024-05-24.
  3. 1 2 Turner, Brad (October 19, 2010). "Magic Johnson sells his 105 Starbucks franchises". Lakers Blog. Los Angeles Times . Archived from the original on 20 October 2010. Retrieved 24 September 2019.
  4. ↑ "Listen and Learn: Magic Johnson Shares How He Closed a 9-Figure Deal With Starbucks". Yahoo Finance. 2022-07-12. Retrieved 2024-05-24.
  5. 1 2 3 Bresnahan, Mike; Johnson, Greg (June 30, 2008), "For Magic Johnson, the NBA was only halftime", Los Angeles Times , archived from the original on August 4, 2008
  6. ↑ Bresnahan, Mike (18 October 2010). "Magic Johnson Sells His Ownership Stake in the Lakers". Los Angeles Times . Retrieved 24 September 2019.
  7. ↑ "Magic Johnson Forms Deal With Food Service Vendor Sodexho". Fox News. December 7, 2011. Archived from the original on 2013-05-28. Retrieved 2020-11-12.
  8. ↑ Whitehouse, Kaja. "Magic Johnson adds life insurance co. to empire". USA TODAY. Retrieved 2024-05-30.
  9. ↑ "Dodgers selling team to Magic's group for $2B". ESPN.com. 2012-03-28. Retrieved 2024-05-30.
  10. ↑ "Our History". Magic Johnson Enterprises. Retrieved 5 September 2024.
  11. ↑ "Will Ferrell announced as LAFC part owner". Sports Illustrated. Retrieved 5 September 2024.
  12. ↑ "Magic Johnson officially joins NFL's Commanders as co-owner". NBC News. 2023-07-21. Retrieved 2024-05-24.
  13. ↑ "Magic Johnson joins NWSL's Washington Spirit as investor". ESPN. 5 September 2024. Retrieved 5 September 2024.
  14. ↑ blackentrepreneurprofile.com. "Magic Johnson's Canyon-Johnson Closes New $1 Billion Canyon-Johnson Urban Fund III". Black Entrepreneur & Executives Profiles. Retrieved 2024-06-21.
  15. ↑ Vincent, Roger (July 2, 2002). "Sunset Rising in Hollywood". Los Angeles Times. Retrieved November 1, 2019.
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