Courting New Skills

In 13 seasons in the National Basketball Assn., Earvin “Magic” Johnson lit up the Forum in Inglewood with no-look passes and other dazzling moves. He led the Los Angeles Lakers during the team’s 1980s heyday, helping it win five championships. Now Johnson is scoring again in the business world. Among other enterprises, he has opened a successful chain of inner-city cinemas and shopping centers and has partnered with Starbucks and T.G.I. Friday’s to open up franchises. He was interviewed by Times staff writer Marc Ballon.

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Question: What’s more fun, basketball or business?

Answer: I think basketball came naturally to me. I don’t think anything could replace that, but if anything could, it would be business. I’m just as excited. I get up for the big deals just like I get up for a big game. I’m learning a lot, much like in basketball. But with business it’s kind of like going back to school. I’m learning how to be a businessman. I’m talking to people, watching, listening and observing.

The basketball has definitely made me a better businessman. I know how to handle myself under the gun. I want it. I want to take the big shot, make the big play. That’s what I was born to do.

Q: How are basketball and business similar or different?

A: In terms of preparation, business and basketball are quite similar. With both, you have to study and do a lot of research. With some of my businesses, you’ve got to research how many people live in a neighborhood, what the income of the neighborhood is, whether they want the services you offer. You have to figure out how much everything will cost and so on.

You have to know who your opponent is, what he likes to do, whether he likes to go left or right. You have to put in time. You have to work to be a good businessman. You have to work to be a good basketball player. I want to win at business like I want to win at basketball. In business, my goal is to have a successful company, to put people to work, to revitalize a mall or a community by bringing in good businesses. That’s what it’s all about.

Q: Why do you target the inner city? Is it because it represents a great market or because it’s underserved?

A: Both. Doing business there makes good business sense. It’s a great opportunity. And that’s the neighborhood I know best. I grew up there. I’m from there. It’s just a natural for me.

Q: Your inner-city businesses have been quite successful. What advice would you have for entrepreneurs trying to follow in your footsteps?

A: Other people can do this if they just put in the time and effort. I’m hoping that others go there. Listen, look at our Starbucks. Look at our theaters. They’re all making money. There’s no reason people should have to travel 45 minutes outside their neighborhood to get a good meal, go to a theater or get a quality cup of coffee. We want the same things that people in the suburbs have. The key to doing well in the inner city is to put in a quality business or service. If it’s second- or third-rate, we’re not going to go.

Q: Are you planning to expand your businesses into the suburbs or even abroad?

A: A lot of people want me to expand into foreign markets. A lot of countries have been calling. But I want to tackle the United States first. And once I get a handle on that, then I can think about going foreign [laughter]. I don’t want to branch out too far too quickly.

Q: Do you really run your own companies?

A: Of course I do. Everybody knows I’m a control person. I just won’t put my name on anything. I’m the chairman of the board. I’m the person in charge. I make all the decisions. I have the yea or nay.

Q: Your latest endeavors include television production, talent management, a record label and an interest in L.A.-based Founders National Bank. What’s the common link in these ventures?

A: All of them are about people and about entertainment. My company is about entertaining people.

Q: Are you worried you’re spreading yourself too thin, that you have too many things going on at the same time?

A: No. As long as you have good, quality people heading up every company, you’re going to be all right.

Q: How are the Lakers going to do this year?

A: I think they’re going to do fine with Phil Jackson running the show as head coach. But it’s not enough just to have Phil Jackson. The players have to understand they have to play together as a team.

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Earvin “Magic” Johnson will give the keynote address at The Times’ Small Business Strategies Conference from 9:45 to 10:45 a.m. on Sept. 24.