Why did Magic Johnson accept a 25 year, $25 million contract w/ the Lakers?

[QUOTE=Kblaze8855]He signed for twice what doctor J made the previous year...for the next 25 years. Imagine that....getting 25 years of double the biggest stars money after your rookie season?

Moses Malone had the first million dollar(single season) deal like a year earlier. Kareem wasnt even making a million. bird made like 600 thousand at the time.

People had million dollar deals but spread over years. Pistol Pete had the first million dollar deal I think. And it was like a 3-4 year deal.

Magic had no way of knowing how insane deals would get after the Hawks broke the system by giving Koncak Bird/Jordan/Barkley money.[/QUOTE]Both Kareem and Malone were making $1 million per year. Bird's rookie contract was for $650,000 in 1979. Two years after Magic signed his contract, Bird signed a 7 year contract worth $1.8 million per year.

He was going to be getting paid more than almost anyone at the time long after he retired. It was a no brainer.

That would be about $25 million today

[QUOTE=AK47DR91]
[B]Also, remember that when NBA was on CBS they weren't even showing every Finals games on primetime. Playoffs barely made it on TV.[/B][/QUOTE]

This is not true. I remember watching Lakers/Celtics first finals on the 80's (I think 84) live on CBS prime time. TBS used to broadcast many many playoff games also (mid-80's).

At the time both the $ and the security would be impossible to pass up. Crazy that they thought they'd get 25 years out of him, but I'm guessing that would also include him in some sort of coaching role once he retired.

But that's the chance you took back then. Remember in 1990 when Scottie Pippen signed a 7 year, $22 million deal. He went from making $700,000 to $2.7 million, which was huge. Then in his last year he was making $2-3 million and guys like Garnett were inking the first of the big $100+ million deals after 3 years of playing. Just how it was back then.

It was a great contract at the time and it demonstrated that Jerry Buss wanted him to be a Lakers for life. Kareem had some concerns about the contract. Magic wouldn't be able to play for 25 years so Kareem felt that it blurred the line between Earvin being a player and part of management.

When the times changed and Magic wasn't one of the highest paid players anymore, they renegotiated the deal to pay him more. It's really a testament to how much the Lakers valued Earvin. They didn't want him going anywhere.

[quote=starter]This is not true. I remember watching Lakers/Celtics first finals on the 80's (I think 84) live on CBS prime time. TBS used to broadcast many many playoff games also (mid-80's).[/quote]

But that was the beginning. In the early 80's the finals came on tape delay after the late local news(10:30) in SLC. I don't think any of the other playoffs were even shown. Even local regular season games were only shown to a degree. Not every game like now. I was listening to games on the radio and reading box scores in the paper.

[QUOTE=bmd]I'm watching the movie "Magic and Bird - A Courtship of Rivals" on Youtube..

[url]http://www.youtube.com/watch?v=jtykEHPRO1Q&feature=related[/url]


It says Magic Johnson signed the longest and largest contract in sports at the time.

Surely he should have known that 25 million over 25 years is going to be less than other people are earning over their careers.

Why'd he sign that contract?[/QUOTE]
Because that was a huge deal at the time. And because that detail made him secure for life.

[QUOTE=bmd]Sure it is... but over 25 years? I mean, of course it it still a lot of money. But I'm [B]comparing it to what he COULD have made[/B] over 25 years if he didn't sign a contract for so long and [B]had a chance to sign new contracts[/B] throughout his career based on his increased market value.[/QUOTE]
He did make that extra money. Contracts could be renegotiated at that time. Do you remember Scottie Pippen being pissed off about locked into a long deal. Why was he pissed if he signed that deal? Because it could be re-negotiated. The Bulls just didn't want to. LA wasn't going to piss off Magic both because of who he was and how good he was, and because he was very close to Dr Buss. So Magic got the security of a HUGE contract with the knowledge that he'd be able to get it redone if and when salaries inflated further.

[QUOTE=Xiao Yao You]But that was the beginning. In the early 80's the finals came on tape delay after the late local news(10:30) in SLC. I don't think any of the other playoffs were even shown. Even local regular season games were only shown to a degree. Not every game like now. I was listening to games on the radio and reading box scores in the paper.[/QUOTE]


THe lakers /Sixers final was the first finals shown prime time if Im not mistake and that was 80.Sure there are more games today. You have more TV outlets with cable and the growth of the game since the MJ eera that was assisted by the Magic/Bird era.

As far as the contract it basically set him for life finacially and as a Laker. As someone else mentioned he also has a % of ownership of the team and the forum. Which had other events outside of just basketball.Then you look at him today looks like that contact didnt hurt him at all.

[quote=Niquesports]THe lakers /Sixers final was the first finals shown prime time if Im not mistake and that was 80.[/quote]

Maybe in the big markets? Pretty sure it was still on tape delay in SLC.

[QUOTE=Kblaze8855]
Magic had no way of knowing how insane deals would get after the Hawks broke the system by giving Koncak Bird/Jordan/Barkley money.[/QUOTE]

You can blame my Pistons for that. Trader Jack sort of bullied them into that deal with some well timed bluffing. It crippled the Hawks for years to come and helped further open the door for Detroit in the East.

[QUOTE=WeGetRing2012]He didn't at the time it was a great contract.[/QUOTE]

Also, Magic went on to make millions of dollars elsewhere. One of the most business savvy athletes ever.

His NBA money is insignificant. He has a net worth of over a $500 million, and runs Magic Johnson Enterprises - worth over $700 million.

The man is loaded.

[QUOTE=Raz]Also, Magic went on to make millions of dollars elsewhere. One of the most business savvy athletes ever.

His NBA money is insignificant. He has a net worth of over a $500 million, and runs Magic Johnson Enterprises - worth over $700 million.

The man is loaded.[/QUOTE]
Oh I'm not feeling sorry for him like he's hurting for money or anything like that... I'm just wondering if that contract was the smartest thing...

it made sense at the time. you want job security. take it any way you can get it.

says magic purchased lakers ownership himself in this espn piece

[URL="http://sports.espn.go.com/los-angeles/nba/news/story?id=5700193"]Magic Johnson sells Lakers shares
[/URL]
[QUOTE]Johnson bought shares representing about 4.5 percent of the Lakers in June 1994 for a reported $10 million. Johnson said the sale was strictly a "bittersweet business decision," but the five-time league champion has long been interested in taking a larger ownership role in an NBA franchise.
[/QUOTE]

Wonder how much he sold his share for last year?