There are only 4 NBA stars who reached the Billionaire milestone. Michael Jordan, Magic Johnson, LeBron James, and Junior Bridgeman. 3 of them are players of previous generations, where the salary wasn’t as high as it is today. Even with King James on the list, it is not only because of his earnings from the NBA. If you also feel that high salaries make up for the current stars’ net worth, then Gilbert Arenas is here to put things into perspective.

During the snippet from one of his interviews with DJ Vlad, the ex-Warriors star discussed the monetary evolution in the NBA. Vlad questioned Agent Zero, “You’re (current players) still making most of your money in the league, right?” Arenas first said yes and then no, giving an example of the previous generation of players. “No, because Michael Jordan made more of his money off the (court), Magic made off (court).”

The idea that Jordan and Johnson’s combined $4.7 billion net worth—$3.5 billion for MJ and $1.2 billion for Magic—came mostly from their NBA paychecks or basic endorsements is a myth Arenas shuts down. Their fortunes, like those of today’s stars, come from smart off-court plays, and Arenas says the new generation is stepping it up with tech, media, and more. But it’s not just these two legends.

Vlad would further inquire if today’s stars like LeBron James and Kevin Durant make more with their off-court ventures. For King James, Arenas simply nodded with a yes. For KD, Agent Zero explained the reason. “Shoes, investments, like that motherfu—- smart. I mean, you know, him and even Curry motherfu—- are smart.” As per Gilbert Arenas, the entire generation of players has become smarter at handling their finances.

“The newer generation is they’re smarter than the old. The old just wanted to play basketball.” The 3x All-Star continued, “What ends up happening is these guys are tapping into new revenue streams right. So yeah, it seems like they’re not focused on basketball, but these guys are. They’re perfecting the game, they’re understanding the game. What they’re not doing is sitting in fu–ing clubs getting drunk all day, for the most part.”

As per reports, LeBron James has earned nearly $480 million solely from his salary. But with his partnerships with major brands like Nike, PepsiCo, and McDonald’s, those endorsement earnings are over $900 million (pretax) from these deals. His lifetime contract with Nike is also reportedly worth over $1 billion. In terms of previous superstars, Michael Jordan and Magic Johnson only earned $94 million and around $40 million, respectively, in NBA salaries. Despite that, their net worth today stands at $3.6 B for MJ and $1.5 B for Magic.

Magic Johnson’s and Michael Jordan’s different strategies could help the smarter generation

As stated earlier, these two legends’ earnings do not match the current standards. As per ESPN, 26 players this season alone will rake in more than $40 million in salary, in contrast to the Lakers legend’s entire salary. However, these players are still learning the trade as Magic Johnson and Michael Jordan created different paths for success.

For His Airness, it was a very simple deal that changed the athlete contract industry. MJ signed his first contract with Nike for $500,000 per year, including royalties. His brand Air Jordan did more than $7 billion in revenue last year, and reported that 5% of that is royalties, so simply $350,000. Apart from this, he also owns a stake in 23XI Racing, the sixth highest-valued team in NASCAR. On the other hand, Magic Johnson is big on being part of the ownership group.

Currently, the Lakers legend is part of 6 different teams. The most profitable seem to be his Lakers and Dodgers. In 1994, he bought 4.5 percent of the Lakers and in 2010, sold it for a reported $50-60 million. He invested a similar sum in Dodgers’ stakes in 2012, purchasing close to a 2.3% share. In 2024, the MLB franchise is valued at $5.45 billion. With reports of LeBron James being interested in buying a stake in an expansion team in the NBA, it will no doubt open more doors for current stars to be savvy with their investments.