a16z Podcast - How Magic Johnson Built a Billion-Dollar Portfolio in 30 Years

Episode Date: February 11, 2026

a16z’s Chris Lyons speaks with Earvin "Magic" Johnson about his 30-year journey from athlete to billionaire businessman. They cover the art of deal-making, lessons from mentors Michael Ovitz and Dr. Jerry Buss, why boring businesses often make the best investments, and Magic's sports ownership portfolio, from the Dodgers to the Commanders to the Sparks. They also discuss what the next generation of athletes and entertainers should know about equity, building teams, and taking risks. Resources:Follow Magic Johnson on X:  https://twitter.com/MagicJohnsonFollow Chris Lyons on X: https://twitter.com/chrislyons Stay Updated:If you enjoyed this episode, be sure to like, subscribe, and share with your friends!Find a16z on X: https://twitter.com/a16zFind a16z on LinkedIn: https://www.linkedin.com/company/a16zListen to the a16z Podcast on Spotify: https://open.spotify.com/show/5bC65RDvs3oxnLyqqvkUYXListen to the a16z Podcast on Apple Podcasts: https://podcasts.apple.com/us/podcast/a16z-podcast/id842818711Follow our host: https://x.com/eriktorenbergPlease note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see http://a16z.com/disclosures. Stay Updated:Find a16z on XFind a16z on LinkedInListen to the a16z Show on SpotifyListen to the a16z Show on Apple PodcastsFollow our host: https://twitter.com/eriktorenberg Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Get people who are smarter than yourself, get the right people, and always pay them and then let them do their thing. If I had to hit that deal in 1979, it would be over a billion dollars. So that's the one that, you're talking about one that got away? Man, I'm sure. That's the one. Don't be afraid to partner. We got to get rid of that myth that you got to be the only one. It's okay to collaborate.

That's right. what's the next growth opportunity for me and my company, right? Because we want to continue to evolve, grow, and think outside the box. Magic Johnson went from five NBA championships to building a billion-dollar empire. His business education started early, working with Michael Overt at CIA, and involved into a portfolio that now includes the Dodgers, the commanders, LAFC and businesses across real estate, insurance, infrastructure, and technology. Along the way, he found his way into venture capital and into a relationship with us here at A16Z.

So today, we're talking with Magic about how that happened, what drew him to venture as an asset class, and how he thinks about tech investing differently from the rest of his portfolio. Let's jump in. Magic. Jay, Chris. Good to see you, man. Good to see you. It's a pleasure.

You know, I'm glad you're able to come through today, man. Well, thank you, man. It's all the great things that you and I have been doing for these years. Years. And now we get a chance to sit down. I think this is important for a lot of people and a lot of different reasons too. Absolutely. Look, I think that, you know, like you said, this is a culmination, I think, almost 10 years

from investments to conversations to having you come up to San Francisco talking about venture, expanding the portfolio. and we wanted really just to take the time today because you are one of the ultimate dealmakers, businessmen, entrepreneurs, and that's also the same ecosystem that we have here at A16Z. And I felt like there was no better way to have a conversation that bridge both worlds

than to have you come on today. So I appreciate you. Again, thank you because you brought me in, though. You know, I think a lot of times somebody has to pull your coat tail, somebody has to make sure that you can see deal or you can see opportunities. Yep.

And I want to thank you for 10 years of making sure that I've had a chance to see these great opportunities that I have a chance to invest in. So, again, you being in there, being an executive, being a deal maker yourself, and then bringing in so many different artists and athletes, absolutely, who now can say they're businessmen or business women because of you. Well, I might have played a big part on the investment side in terms of getting people into Silicon Valley and getting them and understanding the benefits of equity versus endorsements. But you were the one that actually pioneered, you know, getting into business itself. And a funny story that actually inspired me, and I think that we have one tie-in from the very beginning.

And that's actually one of my first mentors, when I first got into Silicon Valley, and that was actually Michael Ovitz. And so I don't know if you know that, but the firm was actually built off of CAA's model. And Ovitz was on the board of Mark and Ben's company. And so that's where they originally got the idea for A16Z and having a service-based model. And so when I first got the job and started working at the firm, I got a chance to meet Mike. And my position was actually, it was a code word. It was called Mini Ovitz. And so I was like, I don't know, Ben was like, we can't call you Minnie Ovitz.

So we got it. And this is never, no one knows about this. And so it's like we got to figure out a very specific strategy. And the funny story is that he told me, he was like, look, Chris, first sitting down. And I came from the entertainment industry as well too. And so I needed a gap in order to understand how to think about things. And he was like, you need to first order a business. I need you to have a breakfast, lunch, and dinner meeting every single day for a year.

And then come back to me and let me know what you learn. And I was like, this is the craziest idea that I've ever, like, why are you telling me this? But then after going through that journey and understanding how to build a network and understanding how he thought about things was really important. But I say that because he also first talked to you when you were thinking about getting into the game and sitting down and having that same conversation. So I don't know if you could just go flashback because obviously he's always on to something. He knows that to pick the talent. That's right. Just to share that story with everybody.

I think that would be super fun. Yeah. I told Dr. Jerry Buss, the owner of the Lakers, that I wanted to become a businessman. he became my first mentor. But then he told me, listen, you need to meet a guy named Michael Owens. Yeah. The keen dealmaker. Of course, of course.

In Los Angeles and in the country, right? And so I said, okay, so I reached out to Michael Ovitz, and I said, hey, I would like to take a meeting with you because I want to become a businessman after my plan career is over. And he said, all right, come on in. So, Chris, I get there. And I think the meeting was around 2 o'clock. Of course, I'm early for everything. Yep, yep. So I got there about one.

And I'm sitting in the lobby. It's 3 o'clock. It's 4 o'clock. And now finally it's 5. So the assistant come out and get me. And I go into his office, and he shakes my hand. And the first thing, he says, you know, I don't know about representing you.

Athletes, they spend more money than they make. Yep. I don't know if you're serious. I don't know if you have what it takes to become a businessman. I represent everybody in Hollywood. I got all the producers, the directors, the actresses, the writers. He said, you know what? Nice meeting.

And he threw me out. You're like, whoa, whoa, whoa, whoa, whoa. I came here for a... I thought I was going to get something done. Minute meeting. I had a pin in my pocket. And so... A couple weeks later, he calls back.

And he says, I checked you out. Mm-hmm. And Dr. Bus told me that you were serious. And he says, okay, come back. So I came back. And he had a stack of magazines. Mm-hmm. And he said, here, you read these.

Yep. And I'm going to give you a test. Yep. And if you passed a test after reading all these magazines, then I think about representing you. So, of course, I went back and read that same day. I read them all, right? Right.

And then whenever he called me, a couple weeks later. I went back. He did the test. I passed the test. And he said, I see you serious about becoming a businessman. So he took me all around town. Yep. Meeting everybody. We met for lunch a lot. He loved meeting at his favorite restaurant. And this is, he taught me so much, not just about business. Art. Yes, the art of deal making and also making sure you have a long and big role. And you might not need the people today, but you may need them tomorrow. And so what he did, I remember we go to his favorite restaurant.

That's when Morden's was the place to eat. And he had the table. He had the one table. The table in the middle. So he says, watch what happens when I sit down. Okay. So he sits down. We sit down and after two minutes, everybody came and kissed the ring.

They came over to him, hey Michael, da-da-da. And so as he was talking to him, he would always introduce me to him. Yep. Everybody that came over, he would always also make the introduction to me. And Chris, about six months later, I'm meeting all these CEOs of companies through Michael. And so then here comes the Pepsi deal. Yep. When I became a franchisee of Pepsi, he put Earl Graze and I together.

and man, that took all. Here comes Starbucks, all these things because he was right in the middle of everything. And then the last thing he did, he reworked my contract to make me one of the highest paid than the NBA. But he did it.

And then I said, well, how much I owe you? He said, I don't want nothing from you. Yeah, yeah, yeah, yeah. That's who Michael Overs is. Exactly. Right? And so I wouldn't be where I am today about Michael Ovid's

about everything that he's. he did for me, making me smarter, make me understand business, make me understand dealmaking. Also, make sure that you go in and you ask questions and you really get the knowledge. He was big on making sure you had the knowledge, right? Being an expert at not only deal making, but also understanding the deal, also understanding the sector, whatever you're getting involved. Well, I mean, because even on our business, there's three different sides. First, you have to be able to see the deal, like, and say, and then, okay, the deal that comes in, then after that, the next stage is saying, okay, I actually want to make that investment.

Right. But the third stage is actually the most important stage, which is winning the deal. Yeah. And that's kind of like how you're talking about in terms of being able to identify those right opportunities and then being able to then execute and do a right deal on top of that. Execution, execution, execution, and more execution. Yeah, yeah. That's interesting because, I mean, when we look at kind of doing deals and thinking about opportunities, a lot of it really does come down in relationships. And so how do you think about your network and how that's kind of cultivated into the relationships and the deals that you have been? Because oftentimes, in venture, it's a very long-term game.

You're not just thinking about just doing the deal immediately. There's a lot of steps and process that come into it. And you have to give first in order to have these things happen. And so how has relationships and the EQ of the business really kind of became, it seems like that's a superpower for you that allows you to have these opportunities come your way? Yeah, you're right, because I build a fabulous relationship when you think about with Ron Burkle and you Kuiper and we did the equity deal, the private equity deal. We did some amazing, we bought some amazing companies. But I knew Ron for 10 years before we actually did a deal. deal together.

Yep, yep, yep. When I think about Starbucks and, you know, really understanding, when you think about customer service, that's what really, it taught me everything I needed to know about customer service, you know, and so having a great partner and going into Starbucks store. and really understanding the business side of it. And, you know, a cup only cost, you know, less than 10 cents or 15 cents at that time. Yeah. And then the sugar, the beans.

And it all starts to add up. You're like, hello. And so your margins were incredible when it came to that, you know. And so I've been blessed to create not only great partnerships, but also having these people as friends as well. You know, and so then I just carry that on to all the other things. Mark Walters today. Yep.

You know, Peter Gruber, you know, all these guys who I'm in business with. But Dr. Jerry Buss treated me like I was his son. Yeah. And I think that when I think about our relationship and him opening up the door for all these other people, for me to meet them and them to become my partners. So I really look at it like when you come into business with these people, you have to play your role and do your part.

As I tell them, what road do you want me to play in this partnership? So I'm going to over-deliver to you and to the company and to this partnership. It's like a team. That's right. Yeah. That's right. And instead of me being a point guard and the leader like I'm normally. Exactly.

You know, home. Tell me what you need. Now I'm playing a role player in business with these men. Yes. And it's okay. You know, and so I am happy about that. And these partnerships have been huge and lucrative. but I learned so much from each individual.

And so they taught me so much. And I was like a sponge. Yep. You know, I wanted to get up under them and learn a lot. I think one of the things that you can be a sponge with is not just one specific industry, but multiple different verticals, right? So you said from food and beverage to hospitality to now the insurance business. Right.

And now, you know, sports, media, entertainment, there's so many different variables. at all kind of having that one consistent vehicle or mindset in terms of service and really over-delivering. Yeah, I think you're right. And so sometimes people want to be in one industry. And I think for me, that was never my mindset. And then there was nothing sexy about anything that I invested in. Yeah, no, but that's where it is.

boring businesses keep, that's a secret. Everybody wants to find the hottest company. And sometimes that might be, it might go up. And then next thing you know, it could be a trend. You're absolutely right, Chris. You're absolutely right. And it's more of those that fail or like go startup and then go down. Yep.

And so, but the ones that are boring and people don't know about or care about, those are the ones who are on a consistent making money or going. up, you have growth. And so that's where I want to be. Absolutely. And so you've done a great job, and I want to say this, why it's on top of my mind, of teaching these entertainers and athletes long-term investing.

You know, it doesn't come. Just immediate. Exactly. You invest it to the fund. They're like, call you back 18 months later. Hey, I need this back. I got to go out this weekend. Exactly. Like, no, no, no, no, no, no, no.

It doesn't happen like that. Yeah, hold on a second. But thank you for that because they've learned a lot from you and the deal-making expertise that you have. And so, yeah, it's... Thank you for that. I appreciate it.

No, no. It's building your network. It's building, like we talked about, your roller decks. And then it's going to lunches and breakfasts and dinners that you probably don't want to go to, but you should be there. And because those places are where the deal makers are. Absolutely.

Those places are where the billionaires are or the multi-millionaires are. And so I learned that early on. And so when I got invited, I went. And then I went early. Ovis said, go early because all the richest people. Exactly. They're not talking to hang out. Exactly.

They ain't trying to hang out. No, they're not trying to hang out. They come early and they want to leave early. Absolutely. And you'll get that quality time. with them if you go early. See, that's a gem right there. See, early is to be on time.

That's right. That's right. Absolutely. Not CP time. No, no, no. Oh, you don't get nothing for that. Exactly. Exactly.

Exactly. No. But I think that, you know, even how we, we, it's a lot of the soft skills that really kind of, you know, really lead into these real investment opportunities and being in the room and having the right time. And so, like, I'm curious when, I mean, when we first met, we met in Silicon Valley when we were doing the Skydeo deal. That's right.

I think it was the Series A at the time. What was that interest in, because you were, that was almost 10 years ago. What was the interest when you were thinking about expanding your business portfolio to get into startups? And to think about why Silicon Valley was an interesting opportunity to explore when nobody else was. really, you know literally one of the first people that we did a co-investment that gave me the idea to realize, oh my goodness, like this is a huge opportunity, not just for our portfolio companies to have access to someone like you and your networking and the relationships that you have, but also for the portfolio companies to learn from you. And, you know, I called it like

share genius where you have the best of both worlds really just coming together and having, and you getting a chance to talk to the CEO and how that's kind of conspired. But what was your original interest in terms of thinking that this was actually something that you should be exploring? Well, first of all, when you go back, so I did the movie theaters with Peter Gruber and Madison Johnson theaters. Howard Schultz and I did Starbucks in 125 stores and 40 different markets. and I just told you how he taught me so much about customer service. And so I was looking for what's the next growth opportunity for me and my company, right? Because we want to continue to evolve, grow, and think outside the box.

Yep. So I said, wow, all the money is going towards Silicon Valley. And so how do I get into that world, right? and then here you come. This little old five foot. Hold on a second. This smart young man. Let's go.

And so I just needed that foot in the door and you provided that foot in the door for me and also being as well, knowing him. And so here comes this opportunity with Scotio and the drones and to be able to To be an early investor. The product wasn't even, it was still in prototypes.

That's right. That's right. That's right. That's right. And so that really excited me. And I think it took me and my company to a whole other level because that brought me into Silicon Vap. I didn't have that in Silicon Vap.

Yep, yep. Now, I had it everywhere else a great track record. Absolutely. Of success, but I didn't have it there. And so that deal provided me with a, track record in Silicon Valley and then open up the doors for me to see other opportunities that I didn't get a chance to see. Yeah. And so, again, I want to thank you, thank Ben for, you know, the opportunity that I had.

You two also, my friends. Absolutely. It's sometimes it's about timing. Mm-hmm. Mm-hmm. See, people forget about that part of it. it's about sometimes it's just not your time to do that deal. Yeah.

Or that, or have that opportunity. Yep. And it just lined up perfect with the right people being you and Ben. And the timing was right when Scotia was just coming out with their product. And it was a consumer product at the time. That's right. And then, you know, with you just now making a couple of the investments into the sports teams

and seeing how an autonomous drone could potentially be the future for sports and entertainment. And then we were outside the four seasons. That's right. That's right. And their prototype and it was going up. Exactly. But to that point you just made, who would ever thought now they used drones for everything? It's crazy.

I mean, so we were way ahead of the curve. I know, man. That's what we don't understand. We were way ahead of the curve. And now you think about every sport. league, every fire department, every police department, on and on and on. Defense contracts are now going very crazy off of it. That's right.

They all use it around the world. Yeah, yeah. Well, I think then for us, one of our investment strategies is a simple one, but it's a tough one, which is like good ideas to look like bad ideas, you know? And so sometimes you have to think outside the box and see around the corner when you're making these investments. And oftentimes a good idea looks like a good idea. that means everybody can really do it.

So you have to kind of find that intersection to where there's, you know, like, and what is your earned secret in terms of like, you know, from the fact, like Adam, for example, like he grew up just, you know, doing RC racing and he ate sleep to breathe this and used to work at Tesla. And so knew the opportunity around autonomy

and really kind of creating that opportunity. And so, you know, that's what we look for when we're looking at founders. Like, what do you? you see because now now we opened up the box everybody's you know hitting you and your team

trying to get you to invest into the next series A, the next series B like what do you look for in founders or the next entrepreneur that's trying to have you become their investor? Well I think first of all you're right you know is

is something that it's not in the marketplace can we really look at this 10 years from now that it's going to still be here. Yep. It's going to still, it has growth potential, hopefully year in and year out. And then do we have a chance to exit or sell, you know, down the line?

And so, and then the partners, I want them to make sure that these founders and these great people They have skin in the game. They also are graded and they're experts of what they do. Yep. And, you know, we then also look at it. Can we bring added value? Mm-hmm. Right.

Being Madgey Johnson, all the things that we have in our toolbox. Absolutely. Can we bring added value to the deal or to that founder and make that company grow or take-all and fly? One of the things that I always tell founders, because they always, you know, whenever we might either get you into a co-investment or present the opportunity and they have the opportunity to sit in front of you and your team, initially they always think, okay, well, we need to get magic

and have him be the face of this or tweet this, and, you know. And I think that people are now finally starting to understand that, you know, the iceberg, tip of the iceberg is magic and Irvin the face. But the enterprise and the networks and the introductions that you can make to whether it's the sports teams, whether it's to, you know, the insurance companies, whether it's, you know, strategic businesses. Now I think that people are really starting to understand the true value of talent and when they're thinking about having somebody on their cap tables. Yeah, because we see, we're politically strong. We're CEO strong.

And, you know, our roller decks is huge and long and powerful. And so we know how to grow businesses. We've been doing it for a long. I've been in business over 30 years. And I tell them all the time, utilize us, utilize our network, our expertise. And so then once they get into partnership with us, then they say, oh, we didn't know. Exactly. You're like, what did you think?

It's called Matthew Johnson Enterprise. That's right, that's right. And that's what we talk about when we say the added value. Yeah. You know, you want my check, but also, too, you should want everything else that we bring to the table. Because I'm used to winning. Yep. I'm used to winning.

I mean, you just got another little chips. That's right. That's right. I started got a little championship on my shoulder for us. So to that point, Chris, I don't just want to win in sports, which I have eight. team championship rings, I also want to win in business. So I have a mindset of winning and I'm going to do everything I can to make sure that deal or that partnership wins. And so that's why you'll get my whole team and everything that we have to hopefully support what you're doing. Yep. The next generation of talent, the next generation of whether it's athletes, entertainers that are interested in business that are looking

to invest into Silicon Valley. You know, they often, like, how should they think about structuring a team in today's time? You just said it. You just said it. What they fail to realize is structuring a team. Just what you just said. Because that's so important. See, you're great at what you do.

Yeah. Basketball player, football players, singing, being an entertainer. But you're not great at business. So you have to get a team that is great at business that you control, that is a part of your entire enterprise that can help you achieve your goals in business. And Michael Ovis always pointed that out to me.

Get people who are smarter than yourself, get the right people, and always pay them and then let them do their thing. And he was absolutely right. So I'm telling all of them out there, You got to get a team of people who can help you that while you're on the stage singing, they're conducting business somewhere. Exactly, right?

They're making deals for you. And remember, these are not people you're going to hang out with it. And nor do you need them in there. That's right. Because if they're in the club next to you. Then who's signing that check? Exactly. They're spending your money.

They're spending your money. So to that point, I've always. look for when we're in the infrastructure. Okay, let's get some experts in infrastructure, you know, on and on and on. So that's what you've got to do. So I would tell them that. That's the first thing I tell them.

Make sure you get a great team around you. And also, those can tell you no. Mm-hmm, mm-hmm, mm-hmm. See, they're not used to somebody telling them no. Yeah, no, they don't even know. That words don't even, that's not even in the vocabulary. learn. They'd be like, no.

No, no, you can't do that or no, you can't write that check or your friends are bringing you deals that make no sense. No, don't invest, you know. And so that's important as well. Yeah. I'm curious when you think about deals, I mean, especially, you know, when it comes to venture capital, no one bats a thousand. No.

You know, we have that, it's called the Babe Ruth effect, where you don't have the highest number of strikeouts, but you also. of the highest number of home runs, right? And so you got to swing for the fences for every deal. But there's some deals that you might miss. And within any venture capital firm, you missed a deal. And just that's just the nature of the beast in the industry. Do you have one in your, that you can remember where you like either looked at the opportunity wrong

or you missed the deal or like that one just either got away? Like, you know, just because you got 30, 30, 32 years plus in the business. If you were striking a thousand And then, you know, I'm just curious kind of If you can, and what did you learn from that? Yeah, Chris, there's always deals that, you know, you wish that you had a road to check And you didn't or deals that, you know,

you heard about too late between the Ubers and all the deals like that That you say, wow, you know, you had an opportunity, but you just didn't pull the plug. I mean, you didn't pull the string to write the check, right? Yeah. And then you have a deal like Nike when I was young

and they wanted to sign me, but give me stop. Why did I meet you by 40-something years ago? Hey, well, you got to call my mom and call my dad. I would have loved to negotiate that one. Exactly. Feel nice. I said I don't have the money. they have, but I got stock.

Wow. And they just ran the analytics. If I had a deal, did that deal in 1979, it would be over a billion dollars. So that's the one that, you're talking about one that got away? Man, I'm sure. That's the one. Michael owes you a hundred, a billion favors. Exactly.

So, again, you know, there's deals that you always will think back. and say, man, I wish I had to did that deal. But at the same time, I'm not a guy who goes backwards a lot. I move forward. I'm always constantly moving forward. What I have is what I'm supposed to have. Yep, yep, yep. And so I'm not, the great thing is being 66 now,

I'm not the same young guy was then. So I can see deals different today and better. And I have a team of people who vet those situations where I didn't before. So things have improved. I've gotten better. And so, again, what you don't have, you don't have. Yeah.

But you learn. You learn. You won't make that mistake again. That's right. That's right. I think one of the things that, I mean, but you learned this extremely quickly was the power of equity versus just, you know, writing a check and getting endorsements. And so have you seen that continue to change in terms of just more?

people outside of the industry that are now starting to look at equity-based deals versus, you know, instead of just trying to get traditional endorsements? I think you're seeing it now across the board. And you're seeing it. Well, look at it from actors. Yeah.

You know, all these actors now are doing equity deals instead of taking the money, right? Creating their own brands. That's right, creating their own brand. Yep. And making a lot of money. And then you see the same thing happening with the athletes and just everyday people too. Yeah.

And so, yeah, it's changed a lot where before you were brought up and you were coming up and you're supposed to say get the most money. Get the check. Get the check. And well, things have changed now. And I think there's a lot of people who, where, you're. able to help people understand that's not the way to go. Yeah. And so now you're seeing some of the most high profile people, celebrities now,

on them, like you said, their own brands, their own companies. I mean, we see it on our end when people are wanting to invest into the next big companies in understanding now that, you know, it's not, hey, I'd love to work with you, you should write me a check. It's like I'd love to work with you. Here's, you know, some money so I could get on the cap tax. That's right. And I think that's what's really changed. Yeah.

Before, after they said, no, I'm not going to write no check, you know. I know. Give me, give me, give me. Yeah. You were like, and they, you know, they was like, no. Also, the founders. It doesn't happen like that. It's two totally different worlds.

We're in Silicon Valley. People, you know, they don't, it's a series C or a series A company. They don't even have a marketing budget like that. So, but it's like, well, we do have stock. Right. You know, and then wonder how that can play out over time. That's right. No, everybody changed, right?

Yeah, yeah, yeah, yeah. So let's try to make it happen. Mm-hmm. And, but, hey, celebrity, hey, athlete, hey, you got to be driven by the equity now. And sometimes the equity, and you got to write a check. For sure. To be a part of that as well. Absolutely.

So, but they're willing now. Yep. They're more educated. today, but because of people like yourself who are their age and can help them understand and teach them how the game is played today versus yesterday when I came around. Yeah, right. And I think one of the reasons, and you kind of talked about it around Craig and that halo effect is that we can, when we make these investments now, and I think that, you know, before

you used to just be on one or, you know, Wall Street Journal or TechCrunch, now when someone makes an investment or the new companies are being built. in Silicon Valley, they go across mainstream media from Complex to Essence magazine to, you know, all on social media, like, boardroom. You know, there's whole entities now that are being created that are really expressing the business of investing. And I think that it's, and now people are,

it's in their conscious mind and they're thinking about the next generation of those companies. Yeah, and that's what's so cool about 2020. Yeah. Right. And so I look at Steph Curry. You look at LeBron, the companies that they have built off the court. Mm-hmm, mm-hmm, right.

A snoop, Dr. Dre, on and on, and on. Kevin Durand. Yeah. I mean, these guys are just doing, they own in teams now while they're still playing. Crazy. Crazy. So it's just beautiful. and you see Tom Brady and on and on, you know, the Manning Brothers.

So you see all these former athletes and current athletes. And, again, there's so many others who are just taking advantage of their brand and star power, but turning it into a successful company. Absolutely. Yeah. And I mean, you were literally the first one. I mean, like you said, is that, you know, people were saying. why are you even interested in business?

And now you fast forward 25 years, like that the cool thing to do is have, you know, a company that you can actually go and invest into and you can build your own brands. And I think that with, you know, even like when we think about the world of crypto and AI, you know, you can, we, one of our thesis is that at one point one person will be able to build a billion dollar business

with the tools that are available right now. You know, being able to, you know, use prompt engineering to actually create a business plan or think about different strategies and all those things. And so I'm curious, where do you see kind of the evolution of what these next generation of technology is coming? I mean, everyone talks about what's going on with AI. I mean, we're very big believers in the future of blockchain technologies.

Like, how are you seeing those worlds kind of develop and what you have going on and if you have a specific thesis? Well, technology, it just keeps going and growing. I mean, man, you and I way back investing in technology and still investing today in technology. And like you said, AI now is going to blow people's mind. It's already blowing our mind where we are today with it, but it's only going to get better.

Yep, yep, right? So I think everybody now have changed and said, okay, I'm moving money from over here, investing in this, to invest in AI. And I say to everybody, and you got to get in early. So to a lot of today's young, successful people, look who else is investing when you look at a deal. And that's going to tell you everything you need to know.

Right. I mean, I can't tell you that my time someone's reached. out to me been like, oh, hey, should I do this? And I'm like, well, who's leading the deal? And then they're like, they don't have a lead yet. And I'm like, well, then you're the lead. And they're like, oh, that's a good point. And you don't want to be that.

You know, and so for me, I always look at who is the lead, also who else is investing. And then I'd say, okay, they got a track. record of success. They've already vetted this deal frontwards and backwards. Yep. And if they wrote a check, I'm writing my check. 100%.

Also, the industry is super important. And I think, you know, you've recently had an opportunity to join the cap table on Alchemy Health and also with Function Health. Yes, right. Which actually just announced their series B today. You know, you're developing an amazing portfolio in the intersections of AI. bio and where the future of innovation is going from there. How do you think about that in terms of just that specific sectors, especially with, and now

people are the next big companies are all coming and saying, okay, well, I see magic has invested in these businesses. Like, I think that this is the next big one. Yeah, because you take alchemy and building pharmacies in places that they don't have pharmacies. Yep. And we were just at a conference in D.C. And we made multiple deals just in D.C. They told me.

They said thank you. Yeah, yeah, yeah, yeah. So, you know. And they're doing amazing. They're doing an amazing job and heavy demand for pharmacies. A lot of them are all the big boys are closing. A lot of their pharmacies and drugstores. But they're still in need, especially in specific areas that aren't in the mainstream ecosystem.

Well, that's the key, right? Rural America, right? The inner cities. Yep. There's plenty of opportunities for Alcobee to take advantage. And they are. Yeah, yeah, yeah. And these cities are courting them.

They need it. They need it. That's how I look at it. If the sector, if there's demand and heavy demand, just like you look at AI, it's heavy demand for it across every end. It's going to help everybody, right? Lower your cost. You're going to be more efficient. You're going to be faster.

Yep. Yep. And you literally have the world's information just right there on your fingertips. That's right. Ready to help, you know, build you the next product. Exactly. Code the next company. Faster, quicker.

Yep. Less money. Yep. That sounds like a win to me. And you make more money. Exactly. So again, you know, I want to make sure. You're companies on the cutting edge

and are doing things we've never seen before. Or there's a huge demand, like alchemy, there's a huge demand. And, man, it's almost you can't miss. Well, you've seen, I mean, the funny thing is is that you've seen it before. You think about the theaters? You think about Starbucks.

All the things that we did that was heavy demand for it. in inner cities, but nobody was going in there building them. So it was supply and demand, right? So we met that and, man, everything just hit a home run. And so, and then we just kept that business thesis going. And then here come companies came in and said, oh, wow, that's a huge marketplace. Minorities do have a lot of spending power.

Right? And right now we're over a trillion, about $1.4 trillion. spending power between African Americans and Latinos is a couple trillion. A hundred percent. Exactly. And so nobody was going after their disposable income. So that's why I built my business in those communities. And to your point.

So I will continue to look there, but because now my company is more global and we're doing bigger, bigger deals. So that's a sometime. a problem that you and I have our friends. Yeah. And people that we know who are great people who are celebrities and some, you know, they bring you deals and they're too small. They don't understand about grown those deals, you know.

Like, what's that? What did you say? You said, like the same amount of time I'm going to work. That's right. That's right. For a small deal, I could be working on a big deal. Yep. And we got to put our efforts in those big deals.

And, but there's nothing wrong. And so everybody has to start some. And they have to understand that. Don't think that you have to start where I am or where LeBron is or step or whoever it is. It's okay to start small and grow your business and grow your company. But for me, you can't get mad at me because I say, hey, my deal's got to be here. Yeah. Because, again, that's where my company, my brand is.

And that's the cause that I'm getting today. Yep, yep. Where yesterday I was getting the other calls, but not today. All these big deals, they call me and say, hey, we want you to be a part of. That's how I got into the sports team. Exactly. I remember when I went to your annual conference down in Laguna, you had your whole team around, and you were just pointing out, look at my portfolio.

This is the portfolio. This is the value in billions. That's right. And so you emphasize, like, we're going to keep growing this. we're going to need exponential value. And so you're going to have to, you know, swing for the fences and think bigger continuously. Yeah, because, Chris, we look, let's just break down. When we bought the Dodgers, $2.2 billion, where everybody said that was, we overpaid, right?

And today, this is not from me. This is from Forbes and all the companies. Now it's $8 billion. Yep, yeah, right. Right. And so, so, billion. Dr. Buzz bought the Lakers for $65 million. They just sold for $10 billion.

Lake Show, baby. The commanders, just two years old now. Six billion, now they just said we're closer to $8 billion. And now that the new stadium, that's going to go even up higher that we're building today. So sports, I know we always talk about it. Why do I invest? Well, it's easy because the valuations are so high and nobody's ever going to stop watching sports in America.

That's where we get away. Exactly. That's our release. Exactly. That's our get away from our everyday work life is to watch sports. And that's why it's always going to be these teams. The valuations of these teams will continue to skyrocket because of that.

To sparks? Yeah. I mean, you did that deal super early before people, the WMBA wave even really took off like that. And we were losing money. Exactly. And so why did you decide to hold on that? Well, because, first of all, we thought that someday it would change. And we wasn't losing a lot of money, but we were losing money, but stuff that we could, okay.

Yeah, yeah, yeah. It's okay. Yeah. We're comfortable with the loss. Yep. And we didn't know it was going to turn around like this. Yeah, no, exactly. From now, the team is worth like $300 million and growing, right?

Crazy. But we only paid a few million for the team. Yeah. And now it's where it is. But give a lot of the players, a lot of credit, give college basketball, women's college basketball, took off. And then that fan base came in. to the WNBA and start watching that as well. So, no, we're still blown away about the growth of the WNBA

and where it's going. Soccer in America, same thing. LAFC, we're, valuation over a billion dollars, I think, with one, two. Man, it just keeps growing. NWSA. The women's soccer league, same thing. It's just skyrocketing.

Now they all have great TV contracts. The WNB, that's the reason. They have great TV contracts. 100%. And so it's just amazing. So that's why I invested in sports teams. And they're growing. That's right.

Growing and growing and growing. And then streaming came in. All those companies really allowed these leads to grow because they all want sports content. So much even like what happened with you. a couple weeks ago, YouTube TV, when they shut off ESPN for a couple weeks in Disney. And everybody was like, no, hold on a second. We got to get this deal right.

Yes, yes, because that's how important it is. That's right. And young people get everything on their phones. Oh, yeah. You know how many times you'll be eating dinner and then, like, you just still go out to eat and you got the game on? They told me, a lot of people told me they were watching the World Series when my Dodgers won back-to-back. And they said they'd be out to dinner. Absolutely.

And they wasn't listening to their wives or girlfriends. They were like, wait, man. And one guy told me they were at a wedding. Yep. And said all the guys sort of went out. Right. Y'all good. Y'all good.

And we're going outside and watch the game on our cell phone. Oh, man. But that's how they consume their content is on their phone. Well, even when you were talking about sports, we're upstairs, you said one of the secrets to why these teams are growing. And obviously, with the success of the Dodgers, when you purchase them and the sparks and, you know, continuing. And now, you know, with the commanders and so many other teams is that you have to not be afraid to spend money. You got to spend money in order to make money. That's right. So break that down,

because, I mean, even from our portfolio companies and founders thinking about, you know, always just conserving the cast versus going out and really putting the money to work. Yeah, Chris, that's a great point. When we bought the Dodgers, we put a couple hundred million into the fan experience, into the stadium. We had to increase the fan experience. What is every league and every team talking about today? Yeah. How to increase the fan experience, because then the money will come back to the owners, right?

And so because of that, now the Dodgers is just. just we're making money that no major league baseball team has ever made revenues. It's been crazy. Yeah. Unbelievable. So it came back to us. And so I can tell you so many different situations that you have to invest in the team, yep, in the stadium, uh, because it will come back and the players because that's the number one thing. You had to put a great product out on the field. Yep. That's where we're, We're growing the commanders. That's the next step for us.

How do we get better? You know, and so we're going to do that. We finally got our quarterback and Jaydon Daniels, but we have to surround him with more weapons. We have to get better on the defensive end. So we're taking steps. But every team got to put money into the player development, players itself. And then last but not least, making sure.

that the fans are happy because you're asking them every year. To come back? Yeah, come back and ticket prices go up. Absolutely. Yeah, yeah. Yesterday's price was not today's place. Exactly, exactly.

And so, and they're going to say to us, okay, if we're going to pay more money for our season tickets, then what are you going to do as the owners? Yep. And as an owner, I mean, it really boils down to, you know, it's not just the team itself.

Like you're working with operations, you're working with so many different puzzles. And obviously when you were playing, you were the captain of the team for the founders that are thinking about building and scaling their teams. Like what is it that you think that they should keep in mind

or what would be, you know, what's your methodology of thinking when it comes to keeping a team together as you're going towards these goals? Yeah, I think first, you know, making sure that you do invest in player development, analytics. Yep. Yep.

When I play no athletics, today, you've got to have a whole staff. Yep. Because that's how you win in today, right? Right hand pitcher versus left hand pitcher. That's right. That's right. In basketball, this guy shoots from the right side on threes and he make them more than he does on the left side or a foursome left because he doesn't score well-go.

I mean, on and on and on. So I've never seen analytics come into, it's in every sports now. NFL, football, basketball, baseball. Baseball actually started analytics, really, in sports. So invest in analytics and then marketing, because you've got to have a great marketing team to help you go out and tell your story. And what you're about. That's right. Your way, what you're about.

And so between that marketing PR team, you've got to have a great one. And then I would tell them identity. See, people are going to latch on to your identity. What is your identity? Why do I even need to even be with you? That's right. Right. What is your identity?

Who are you? Players also going to ask you that. What's the identity? of the commanders, of the Lakers, the so-and-so. And so, and then do you want to win? Because a lot of players and a lot of fans are going to be saying, hey, Mr. Owner, do you really want to win? Exactly.

You know, Ben says that you're either playing not to lose or you're playing to win. It's either one or the two. And he's right. And every group I'm with, you know, they're playing to win. And that's why, you know, we're, every team I have but the sparks. And this year, now the commanders won't be in the playoff, but every team was in the playoff. Absolutely.

And so we're playing to win. Yeah. And so the fans see that? Free agents see that? Yep. Yep, because they're like, hold on a second. I'm tired. I'm tired of going to Cabo.

Exactly. And I want to be in the playoffs. Why do old Tony leave the angels to come to the Dodgers? He had never been in the playoff, and he wanted to be in the playoff. That's why he signed with the Dodgers, and he's back-to-back world to his champion. That was one of the best world series. You guys had – I was on the East Coast, man. You guys had me up until 3 o'clock in the morning watching that game.

Yes, that 18-in-game. Crazy. I'm locked in. Yeah. And everybody says, the same thing. I couldn't believe it. That series changed baseball in the MLB and for the better.

And I think that we brought in fans that normally didn't watch baseball. Absolutely. And so, again, that's what can happen sometimes. When superstars play like superstars. Yep. Otani performed well. Guerrero from their side performed well, and on and on and on. They all played like superstars.

That's what made it so entertaining. And the highs and the lows, that's what sports give you, right? One minute, you're up three-old, the next minute, they tie you and they take the league. Exactly. I mean, that series was going back and forth, so it's a beautiful thing. That's why, again, we love sports. And we pour so much money into sports. Right now, you've got companies looking for opportunities in sports, individuals who didn't think about investing in sport.

Now they're looking to buy teams. It's always been an asset class, but now people really see the long-term real value. And can I add this? The WNBA got so many people willing to invest in own teams and bring them into markets they're not in. Exactly. The NWSA got so many more people wanted to buy a soccer team today that wouldn't have been interested in one two, three years ago. Exactly. I mean, I think Atlanta just got added recently.

That's right. And because they know that behind everything there's real business that's associated around. And a lot of revenue streams. Absolutely. Absolutely. And I think a lot of, even our companies, when we're thinking about even like the next generation of AI video, right, and being able to be able to work with these companies and find unique ways to bridge technology and innovation. Because if you're building a business from the ground up in 2025, you're starting a brand new company,

you're not going to do things the old way. Oh, you can't. And you think about with the tools that are available now, like that means just by default, you can, say, instead of us having a, you know, a 100-person team or we can actually do this with 10 people. And now we can still operate at 10x speed because of where, you know, whether it's the, you know,

from AI to using blockchain and all these different resources, is really helping push innovation forward on the business side. And that's in everything. Just think about my journey. You couldn't pay an athlete in high school college. Yeah. And now, NIL. Now high school players are getting paid a couple hundred thousand.

Crazy. College players getting paid millions of dollars, which I'm so happy. Because when I came through Michigan State and I was dating my girlfriend, who was now my wife, Cook. I didn't have no money to take her. to get something to eat, right? And they couldn't pay me because that was illegal. But today, these young men and women,

these college athletes, these high school athletes, student athletes, I should say, are getting paid a lot of money. So name and likeness is so amazing. And now you've got companies. Yeah, building products specifically for that. That's right. That's right.

So things have really changed. And this show right here, day. This has been the best show because we've covered everything. There's nobody else on TV that can cover all the things you and I just covered. That's amazing. Well, I think one of the main reasons is because we're both, we both are passionate about this and we're both actually in it every single day. That's right.

Like, we're not, you know, just on the outside reporting in. Right after this, you're going back to your business call, I'm running back to go to the next meeting and we're going to keep it going. And our phone's going to be ringing because everybody's going to say, how can I get down with you guys? Hey, well, listen, well, you got to start getting 10 years in the game in order to help make it happen. Yes, exactly. But I think that, like, you know, your journey,

and this is why we just wanted to make sure you were the first one that we shared this with, because you did it, like you said, we talked about the NIL deals. You talk about all those things like, you know, the contracts were way different back then when you did it. And you see, you know, I think there's only four. billion-billionaire people in sports. I mean, you have LeBron, you have Jordan, you have Tiger, and then we got Mr. Magic in the building, you know? And Irving, like in terms of...

But how you did it was not just on the sports, but all majority from business. That's right. And a number of deals that led you into going, taking one thing, taking your investment in Starbucks, flipping it into Dodgers, just continuing to be. build.

And so I think that, you know, as much as we love you as the Hall of Fame athlete, you're a Hall of Fame entrepreneur. Thank you. Thank you, Chris. Are you a risk taker? Absolutely. You see? And I think a lot of times that's what they have to ask themselves.

Are you willing to take the risk from the money that I did make from Howard Schultz and Starbucks? And again, thank you, Howard, because he made me legitimate. Yep. That Starbucks deal sealed the deal for me. But I was a risk taker. I put up my money. Exactly.

You got a lot of money. That's right. And Dr. Bush said, I love you. He said, I love you as a son. But you got to write a check. No, I'm saying. Ain't that free. I said, yes, sir.

And so. But that's real. Yeah, that's real. And think about this. And all these athletes and entertainers are there that we're talking to. And, of course, other people. I was in a position. See, I saved my money.

So every deal that came that I had to write a check, I was ready to do that. Exactly. So that's what's important. Interesting. That's a gym right there. That's what's important. And so while you're blowing it on so many other things,

remember when that deal come and you have to put equities, you have to put skin in the game. You got to be ready for that. Stay ready, so I don't got to get ready. That's right. That's right. So I wanted to throw that nugget out. there and that's so, so important.

And, man, my journey, you know the best compliments I get is from all the current guys. The current hip hoppers, Rick Raw, all them, common. They all say, man, we couldn't do what we're doing today. Yeah. But we can do it because of you. Absolutely. You showed us the way. And I said, man, that's a great compliment.

I remember the comment pulled me inside. He said, man, we don't respect a lot of people. But every time I get into any concert, we talk about money, we talk about owning something. They all say you. Absolutely. They point to you. And I say, well, thank you. And I'm just so happy that Michael and I can say, hey, now look at KD, look at Steph, look at LeBron.

It's more than them. There's so many other, Draymond, Equal Dollar. I mean, I can keep going. There's so many great businessmen out there and women because of WMBA, those young ladies are doing. doing great things. 100%. And so I want to also shout out. And it's been a blessing, man, to sit here with you so that we can educate and also help others.

Yeah. You know, who want to get into investing or Silicon Valley owning their own company. It's not easy. Nope. But it's doable. If you put the time in, you got to be willing to put the time in. Yeah, 100%. Because like you said, after this, you and I running,

and I'm going to be on the phone in that car. Exactly, exactly. All the way back to the office doing deals. You and I was separately on phone to a deal before we were. You ready? You're five minutes. And that's what it takes. And then last but not least, I got to say this.

Yeah. Don't be afraid to partner, see. That myth, we got to get rid of that myth that you got to be the only one. Yeah, yeah. It's abundance, man. That's right. You and I are partners, so, see, you didn't have to bring me in.

You could have to say, oh, I'm good. Exactly. But you brought me in. And so I want all these young people to understand that to, it's okay. To collaborate. That's right. It's okay. Yeah.

And then do multiple deals. Keep going. Because they, Chris, you're so needed in today's culture. I appreciate it. See, because I'm older, you're young. So they're looking at you saying, dang, I want to be like you. I want to partner with you. I want to teach me.

See, sometimes we're afraid to say, hey, somebody say, teach me. Yeah, yeah, yeah, yeah. Right? And you know so much and you've helped so many. And that's been your blessing and your purpose. Mm-hmm. Of course, you're rich. you're going to be richer, but you're rich by a lot of different ways.

You're rich by money, but you're rich also with your roller debts and your knowledge and your willingness to spread that and give it to somebody else. The downfall or minorities have been most of the rich people before us took the knowledge with them, then share it. Exactly. So I wanted people to know. This is the man right here. I appreciate, look, well, I wouldn't be here if we didn't have the opportunity to soak up

your wisdom and just the foundation that you've created. And, you know, you've been my inspiration behind everything in terms of taking business and bridging these worlds together. And so I appreciate you taking the time to have this conversation. You know, you're a friend. You are always there whenever we need anything. And in return, we just want to keep on running it up. That's it.

That's it. Keep on winning them rain. Slide in the championship rains on our bag. 19, 19, 20. Yeah, I appreciate you, man. This was super needed. Yes. And, you know, I'm glad we're able to get this wisdom down.

Thank you. You know, you're the man. Thank you. Thank you. I appreciate it. And so are you. Oh, thank you, man. Thanks, everybody.

All right. Sign it out. Sign it out. No, no, no. Out. Exactly. No, that was amazing. This was great, man.

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