Through Well, Abdur-Rahman
June 19, 2025
According to Johnson, the deal proved that urban redevelopment was an investment that was worth doing.
Magic Johnson has made billions since he withdrew from the NBA, but one deal with Starbucks “everything changed” for the business visionary.
Johnson appeared on Bloomberg’s The deal With Alex Rodriguez and Jason Kelly to talk about his rise in the business world.
https://www.youtube.com/watch?v=I5U02YMFBZS
“My cinemas crushed it in the inner cities. It showed people that you can make money to do business in the inner cities of America,” Johnson said in the interview.
Even with those qualifications, Johnson said that he had a powerful task to get the then Starbucks CEO Howard Schultz to invest in his idea of placing more of the locations of the coffee chain in disadvantaged communities.
“The most difficult thing I thought I was going to do was play against Larry Bird and Michael Jordan. The hardest thing was to go for the [Starbucks] Board and then go to a cinema full of good shareholders and try to convince them that this is a great step for Starbucks, “Johnson explained.
Fortunately for Johnson, his persuasion skills corresponded to his basketball skills. The entrepreneur has closed the deal to have an interest at 125 Starbucks locations. However, the relocation not only increased its assets, but also proved the viability of investments in urban areas.
“That deal changed everything,” said Johnson in 2018, according to CNBC. “We built 125 stores. We let that deal happen, and that is what really brought me a path of success. … It showed everyone that I could manage ROI in Stedelijk America.”
He added: “… my company was able to offer jobs and access to these retailers who did not come in before, but now they hit a home run when we worked together and they entered the city center.”
Although Johnson sold the theaters and his interest in Starbucks a few years later, its success helped to establish the 65-year-old as a powerhouse in business. It also encouraged companies to consider various under -represented areas for growth opportunities.
“I became the first person ever to own Starbucks outside Starbucks,” said Johnson. “We have built 125 on 40 different markets throughout America. They did it all extremely well. And that really gave me, first of all, the stamp of approval. It gave me the track record that I needed of success, so that I can continue to something else.”
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