NBA Hall of Famer Magic Johnson has made some fantastic business decisions over the years, with one of them being the ownership of the Los Angeles Sparks. However, that wasn't always the case.

Johnson is part of the Sparks LA Sports ownership group that purchased the team in 2014, and he spoke about that investment during an appearance on the a16z podcast.

"We were losing money," Johnson said. "… We thought that someday it would change and we wasn't losing a lot of money, but we were losing money… We're comfortable with the loss.

"And we didn't know it was going to turn around like this… Now the team is worth like $300 million and growing, right? But we only paid a few million for the team, and now it's where it is." Johnson added.

Right now, the Sparks are worth far more than $300 million. CNBC and Sportico have both listed them as the seventh-most valuable franchise in the WNBA, at $415 million and $400 million, respectively.

But there was a time when the Williams Group Holdings owned Sparks lost nearly $12 million on the team over the last seven years. They were projected to lose another $1 million in the 2014 season as well and wanted out.

But Johnson, who revealed that they bought the franchise for just $10 million, is obviously quite relieved that they held on to the ownership even in the toughest of times.

The Sparks aren't the only investment Johnson has made and been successful with, as Johnson's efforts, patience, and hard work have helped him build a multi-billion-dollar empire.

Magic Johnson is the King of Investments

Apart from the Sparks, Johnson also has stakes in the MLB's Los Angeles Dodgers, the NFL's Washington Commanders, the MLS's Los Angeles FC, and the NWSL's Washington Spirit.

Johnson once called his $6 billion investment in the Washington Commanders “the greatest deal I’ve ever done.” He has also explained the reasons he likes investing in sports teams.

"So sports, I know we always talk about it," Johnson said.

"Why do I invest? Well, it's easy, 'cause the valuations are so high and nobody's ever going to stop watching sports in America. That's where we get away. That's our release. That's our getaway from our everyday work life is to watch sports… The valuations of these teams will continue to skyrocket because of that."

However, building such a large empire comes with trials and errors, and Johnson has faced failure before. He once was a minority owner of the Lakers as well, but sold his 4.5% stake back in 2010.

Considering the Buss family sold their majority stake to Walter at a $10 billion valuation in 2025, it is safe to say that the 66-year-old probably has some regrets now.

Nevertheless, with how the WNBA has evolved in the past few years, we will probably respect Johnson's decision not to back out of the Sparks early even more.

So, where do you think the Los Angeles Sparks will be valued at by next year? Let us know in the comments.

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Written by

Joy Bassy

Edited by

Joy Bassy