Johnson’s Contract the Catalyst to Him Undergoing a Physical

Why did Magic Johnson take the physical examination that led to his being diagnosed as HIV positive?

As part of his $3.14-million Laker contract for 1991-92, Johnson received an interest-free loan, on which an insurance policy is routinely taken out to secure the note. In order to get the policy, a physical examination is required. Johnson accepted the loan in advance of clearing the physical, which he took in October before the Lakers’ exhibition trip to Paris, according to a spokesman for the company that operates the Lakers.

Bob Steiner of California Sports Inc. said the loan was a perquisite in Johnson’s contract that enabled the Lakers to give their 32-year-old three-time MVP a pay increase without breaching National Basketball Assn. rules, such as the salary cap.

Steiner and Jim Perzik, general counsel for California Sports, Inc., said the Lakers were prevented from increasing Johnson’s salary in his existing contract, but that Johnson could still receive a loan from the Lakers and still fall within the NBA guidelines.

Johnson will continue to receive his salary from the Lakers in retirement, Steiner said.

“His contract is in full force,” Steiner said. “Jerry Buss will give him anything he wants and he always will.”