Magic Johnson understood ownership long before it became part of the modern athlete playbook.

In a recent conversation with Andreessen Horowitz General Partner Chris Lyons, Johnson reflected on a 30-year transition from franchise player to franchise owner. What stands out is not the scale of his wealth, but the timing of his mindset:

While most athletes in the 1980s were operating within a salary-plus-endorsement model, Johnson was studying leverage. Learning from Jerry Buss, he saw how team ownership, media rights, and surrounding real estate created exponential value. Exposure to Michael Ovitz sharpened his understanding of negotiation and positioning.

That proximity to power shaped his long-term strategy.

The Transition From Talent to Table

Johnson’s early business ventures included investments in movie theaters, food service, and real estate, and they all focused on cash flow and underserved markets. Structured businesses; not branding exercises. Over time, that capital compounded into ownership stakes in major sports franchises:

These are appreciating assets tied to continually growing media rights deals and franchise prices.

Equity Over Endorsements

In his conversation with a16z, Johnson emphasized fundamentals that are still under-discussed in athlete business circles. The equity conversation today often centers on startup allocations and venture funds. Johnson’s model is broader: asset selection, long-term holding periods, and institutional partnerships. He treated ownership as a career extension, not a side project.

Why This Matters Now

Magic studied ownership while still playing and prioritized infrastructure over image. For athletes navigating unprecedented earning power today, the takeaway is not simply “get equity.” It is to understand where the leverage sits in the system and position yourself accordingly.

What do Giannis Antetokounmpo, JuJu Watkins, and Tom Brady have in common?

Well… a lot of things. But I guarantee what I’m about to say won’t be the first thing that comes to mind. They’re all part owners of professional sports teams, and in doing so, they’ve tapped into an asset class that has generated 13.2% annualized returns over the last two decades, outperforming most traditional investments, according to the Ross-Arctos Sports Franchise Index.

For context, here’s a number from Forbes that puts that in perspective: six years ago, the world’s most valuable sports team was worth $5 billion. Today, that figure wouldn’t crack the top 50. Sports franchises aren’t just appreciating; they are exploding.

It feels like every week there’s a new headline about a high-profile athlete buying into a pro sports league. That’s not just a random coincidence.

The NBA and NFL have both moved to allow increased investment from private equity firms, opening new doors for participation. The most common entry point is a minority stake, meaning athletes are investors, not running the day-to-day of a sports organization.

This obviously makes sense given the demands of an active playing career. The structures of investment vary too. Some athletes, like Caleb Williams, have invested through their own vehicles. Others come in as part of a larger ownership group, like Boston Legacy FC.

Like any investment, there are barriers and risks worth being upfront about. The most established franchises, the ones with the least downside, aren’t necessarily looking for just any investor. The bigger the name recognition, the more likely you are to be warmly welcomed to the cap table.

The signal is stronger with higher-profile athletes, and that’s just the reality of how these deals work. For athletes earlier in their careers or with smaller profiles, emerging leagues can be an entry point. The upside can be significant, but so can the risk, both financially and reputationally.

Here’s my take: pro athletes have a unique value-add in this space that most investors simply don’t have. You understand what makes a winning or losing organization. You know the culture, the operations, and the product. That’s not nothing; that’s insight that many would pay to have.

Whether it’s a sports franchise, a startup, or any other asset class, the athletes who win off the field are the ones who start building during their playing careers, not after. Network now.

Build relationships now. Educate yourself now.

The seat at the table is there. Who wants it?

Noah here 👋🏻 Thanks to our friends at OneFluent and Pillar, the official link-in-bio for the New England Patriots. We hosted an afternoon of great company and conversations with a select group of athletes, creators, entrepreneurs, and investors.

We don’t host often, but when we do, we like to do it the right way.

Noah here again, two sections today; not done with your short attention span 👋🏻

If you work with NBA athletes and are in town this weekend, happy to give you an in-person platform demo. I’m delivering demos like Dominoes, we have some incredible tools we’re building behind the scenes to share with you.

On another note, if you just want event recommendations, please reach out, happy to be helpful!

Alveos One by Alveos is a wearable device that directly monitors breath acoustics to detect mouth breathing and respiratory efficiency in real-time, helping athletes master their recovery and sleep.

The team is looking for notable athlete ambassadors to help educate consumers about the power of acoustic breath tracking.

To chat with Patrick and team to learn about their helping athletes and professionals get ready to perform, please feel free to reach out.