The Magic Touch: What Now? : Advertising: The charismatic NBA star makes millions as a spokesman for products ranging from cola to sneakers.

Magic Johnson’s business interests are more diverse than those of the typical sports star, but experts say his core value is as a basketball celebrity, and anything that takes him off the court is a blow to his other activities.

Companies that use Johnson as a spokesman expressed shock and sympathy after his announcement Thursday that he was quitting the game because he had tested positive for the virus that causes AIDS.

The companies did not say whether they planned to cancel or alter commercials involving Johnson, but several advertising executives and other observers contacted Thursday expressed concern that current campaigns might be curtailed.

“The purpose of a commercial is to sell a product or a service, and it can’t be associated with anything negative, such as a disease,” said David Burns, who runs a Chicago-based booking service for sports celebrities.

“Anybody who isn’t using him but may be contemplating it will pull back,” added Martin E. Blackman, a New York City consultant on sports marketing.

On the other hand, some observers believe that the goodwill that Johnson’s magnetic personality has won him might only increase with Thursday’s announcement, at least in the short term.

“I would stick with Magic Johnson . . . because there’s going to be a lot of good carry-over. People are going to be pulling for him,” said Joel Portugal, partner in the New York advertising consulting firm of Anspach Grossman Portugal.

Added Los Angeles public relations consultant Howard Bragman: “The backlash would be extraordinary if anybody dumped him now.”

Johnson, who has consistently ranked as one of the most appealing athletes in consumer surveys, reportedly earned about $3 million as a spokesman for such products as Diet Pepsi, Slice, Kentucky Fried Chicken and Converse athletic shoes.

Pepsico spokeswoman Becky Madeira said Johnson is not featured in any current commercials, and “it’s premature to talk about the future. We think he’s a terrific person and he’s been terrific for us.”

“We are shocked and deeply saddened to hear of Magic’s illness and retirement from the Lakers,” said Gib Ford, president of Converse Inc. in North Reading, Mass. He said he would have no further comment until he speaks with Johnson, who has been associated with Converse since 1979.

Johnson has been savvy in expanding his business interests beyond commercials.

He makes it standard practice to ask for some kind of ownership involvement in companies that hire him as a spokesman.

Last year, for example, he joined with Earl G. Graves, New York publisher of Black Enterprise magazine, as partners in the Pepsi-Cola distributorship for Washington, D.C.

Johnson also owns a thriving T-shirt company called Magic Johnson T’s and has started a chain of retail clothing outlets.

One of his key business goals has always been to own an NBA franchise, and in his press conference Thursday at the Great Western Forum, he said he is “still pursuing (that) dream.” He jokingly suggested to Lakers owner Jerry Buss that he is ready to move into Buss’ chair.

Several years ago, Johnson added Michael Ovitz, president and co-founder of Creative Artists Agency, to his team of business advisers, which also includes Los Angeles marketing agent Lon Rosen.

Another question Johnson’s announcement raises is that of the impact on the Lakers organization, which has ridden his drawing power to become one of sports’ premier franchises.

Steven J. Matt, who appraises professional sports teams for Arthur Andersen & Co. in Dallas, said that except for Michael Jordan, few athletes in any sport are as valuable to their team as Johnson is to the Lakers.

“Without a lot of analysis, it would be very difficult to put a dollar figure on it,” Matt said Thursday, “but it’s definitely in the millions.”

Magic’s Business Interests

Magic Johnson is one of 1991’s top athlete endorsers, according to a survey of consumer appeal by Video Storyboard Tests. Last year, earnings from his off-court enterprises--ranging from a Pepsi bottling company to stores--were estimated at $9 million.

Endorsements

* Converse

* Disneyland

* Kentucky Fried Chicken

* Nestle Crunch

* Pepsi

Businesses

* Ownership of a major interest in a Pepsi bottling company in Washington, D.C.

* Magic Johnson T’s, a T-shirt company.

* Magic’s 32 in Santa Monica, the first of a chain of three stores offering licensed sports clothing, shoes and accessories.

* “Magic Johnson’s Fast Break,” an animated electronic video game made by Tradewest, a licensee of Nintendo of America.

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