Johnson Sold Share of Lakers for $12 Million

Magic Johnson sold his 5% share in the Lakers back to owner Jerry Buss for $12 million, sources said Friday, earning him about a $1-million profit in the process.

Johnson is believed to have paid about $11 million to become a minority owner on June 27, 1994. None of the parties involved would comment on the sale and more specific details were not readily available because of the complicated nature of the transaction completed on Monday, far more detailed than the basic $2.5-million deal he signed the same day to play the rest of the season.

NBA officials approved the ownership shift without objection. While every such case is reviewed, they are given special attention any time a player is involved, to make sure that the separate transaction is not used as a way to get around the salary cap. Neither Johnson nor the Lakers had to justify the apparent appreciation in the shares.

Nothing is in place that would guarantee Johnson the right to buy back his portion. But he has said he will probably do that upon the next retirement--and there is no reason to believe Buss would object--barring the chance to buy a major piece of another team.

“I hope to, yeah,” Johnson said. “If it’s not here, then somewhere else. I thought I was a good part-owner--kept my mouth shut and just collected checks.”