Just as pandemic dust settled, Donald Trump’s revived tariff blitz threatened to wreck Wall Street, yet one team owner may sidestep the fallout. Dodgers owner Magic Johnson and other major sports team owners are staring down another storm. Portfolios tremble as Washington rattles the trade gauntlet, thanks to Donald Trump’s tariff moves. The S&P 500 has already taken a hit, down 4% in 2025, and it had dropped a sharp 15% earlier before rebounding after Trump hit pause on most tariffs. JPMorgan’s warning bell is loud, predicting a 60% chance of a U.S. recession this year. Goldman Sachs? They’re calling it nearly a coin toss at 45%. And just like that, patience is wearing thin again.

Still, Magic Johnson might just ride this one out with more ease than most. In fact, team owners like him are in a sweet spot when it comes to economic rough patches. History is on his side. Even in crises—9/11, 2008—franchise values climbed, shielding owners like Johnson from broader market crashesm. That kind of insulation is rare, and Magic, sitting pretty with the Dodgers, knows that better than anyone. While direct sports tariffs remain off the table, Trump’s broader trade clampdown signals risk to every global bottom line—from movies to merchandise to stadiums

In early May 2025, President Trump directed the Commerce Department and USTR to explore slapping a 100 percent tariff on any movie “produced in foreign lands,” arguing that generous incentives abroad have hollowed out U.S. film production and pose a national security threat. And while that doesn’t directly scream “sports,” it signals a broader clampdown on international business that could have ripple effects. More importantly, the idea that sports teams are “recession-proof” doesn’t quite hold. Just think back to the pandemic—owners like Magic had to cover huge operating losses. But despite that, franchise values have exploded nearly 2,000% since 1998, according to Forbes. That’s more than twice the S&P 500’s rise over the same time.

Interestingly, even in the face of big events like 9/11 or the 2008 financial meltdown, team valuations have held their ground. Between 2000 and 2002, they actually grew 20%. They even managed a 7% bump during the 2007–08 crisis. And get this—the Ross-Arctos Sports Franchise Index, which tracks all this back to 1960, shows team values only dropped 39 times in 255 quarters. Since 1976? Just 16 times.

To top it off, over those last 48 years, the Index dropped in back-to-back quarters just three times—and never for more than three in a row. Arctos says sports teams have clocked a compound annual growth of 13% since 1960, way better than the S&P 500’s 7%. So, if history repeats, Magic Johnson and other owners once again come out of the chaos not just surviving, but thriving.

Another big reason they may escape this economic mess? It’s all in the structure. Leagues and teams have long been smart about locking in money years in advance through massive media rights, sponsorship deals, and premium seating contracts.

Take the NBA, for example. During the 2023–24 season, teams were raking in an average of $45 million just from luxury suites and premium seating. That alone made up nearly 12% of their revenue. But the real beast? National media rights. In that same year, NBA teams pulled $132 million each—35% of their total revenue—from those deals. And in the NFL? It’s even wilder. Teams brought in $381 million on average from national TV contracts in 2024, and those deals are locked up all the way through 2033.

Even beyond dollars and cents, there are only 124 franchises across the four major leagues, which makes each one rare and valuable. Add a few billionaires trying to outbid each other, and things can get emotional—and pricey. Sure, game-day revenue can take a hit when fans pull back on spending, and right now, people are tightening up. But the core value of teams? Still holding strong.

Yes, the economy’s cooling. Personal spending slowed to 1.8% last quarter, GDP shrank 0.3%, and consumer confidence hasn’t been this low since 2011. But historically, tough times don’t stop fans from heading to the ballpark. As Marc Ganis, president of the consulting firm Sportscorp, who has worked with numerous team owners, puts it, “You need a distraction when we are in bad times… and the primary distraction we have in our country is sports.”

Beyond valuations, Magic’s proactive playbook extends to D.C., where he’s co-leading a landmark stadium revival.

Magic Johnson’s big plan with the Commanders

Magic Johnson isn’t just lending his name to another shiny sports project—he’s right in the thick of it. This time, he is building something with Washington Commanders. Taking to X, he didn’t hold back his excitement: “I’m so excited about this incredible project. Our new stadium will be a state-of-the-art facility, including a roof and entertainment areas!” So no, he’s not just another face on a press release—he’s steering the wheel.

Now, here’s where things really heat up. Washington, D.C., is gearing up for a $3.6 billion makeover, with plans for a brand-new 65,000-seat roofed stadium on the RFK site. This isn’t merely a football stadium; it’s a 24/7 sports and entertainment district poised to host over 200 annual events—including Commanders games, Washington Spirit NWSL matches, college football contests, concerts, and community gatherings. Officials project the redevelopment will generate approximately 14,000 construction jobs and 2,000 permanent positions tied to stadium operations, hospitality, and retail.

And guess who’s playing both sides of the field? Yep—Magic again. As a co-owner of the Commanders and an investor in the Washington Spirit, Magic’s bets are placed on both NFL Sundays and NWSL match days. That multi-use stadium? It’ll serve both teams. Back in 2022, the Spirit was worth $35 million, and that number’s only headed north. For Magic, it’s a win-win, with a side of vision.

Bottom line? This D.C. push shows, once again, how the Dodgers co-owner knows exactly how to turn stadium blueprints into cultural and financial gold.