Magic Johnson's First NBA Contract Made Him The Highest-Paid Rookie In NBA History

HBO’s new series Winning Time chronicles the meteoric rise of one of the NBA’s greatest dynasties: The Showtime Lakers. Led by point guard Magic Johnson (Quincy Isaiah), the team reigned supreme throughout the ‘80s, winning five championships and becoming LA’s hottest ticket in town. The show’s first episode largely revolves around Johnson negotiating his first contract, which there was some controversy around.

It’s important to iterate just how big a star Johnson was before even setting foot on an NBA court. In 1979, it was a forgone conclusion that he would be the first pick in the NBA draft after helping to lead the Michigan State Spartans to the NCAA championship earlier that year. The Lakers had been awarded the No. 1 pick thanks to a coin toss, and there weren’t any questions as to who they’d be selecting. According to The New York Times, Johnson agreed to a four-year, $600,000 contract — what amounts to roughly $2.3 million dollars today.

Except... Johnson didn’t ultimately get that $600,000. Despite the initially reported contract numbers, Magic actually signed for $500,000 thanks to Jack Kent Cooke, who owned the Lakers up until 1980. Showtime: Magic, Kareem, Riley and the Los Angeles Lakers Dynasty of the 1980s — the book Winning Time is based on — covers the story of why Johnson’s contract was decreased. Ahead of the draft, Johnson came to LA to meet with the Lakers front office in order to feel out how well he’d fit within the franchise.

During the trip, he met with Cooke at a burger joint to discuss his salary. At the time, Lakers center Kareem Abdul-Jabbar was the face of the NBA and was earning a $650,000 annual salary, which is why Cooke scoffed when Johnson asked for $600,000 (in part because he wanted some extra money to finish his degree). “Let’s get one thing straight right off, I’m not paying for your education,” Cooke retorted. “I put myself through school, and if I could do it, you certainly can.” He countered with $400,000.

Though Cooke believed Magic was a great prospect, he didn’t see him as the Hall of Famer he was destined to become. Cooke also had his eye on another prospect, Sidney Moncrief, a forward from the University of Arkansas. However, Johnson wasn’t swayed. When met with the $400,000 offer, he replied, “I guess I’ll be going back to school.”

Johnson’s own father, a blue collar worker, was dumbfounded by his son’s response. “I’ve worked in a factory my whole life for what he’s offering you for one year. And for something you love doing! Don’t be greedy,” he told his son, according to Showtime. But it didn’t take long for Cooke to crack. He invited Johnson and his entourage to stay another night in LA so they could reconvene at the Laker’s facility in the morning. Both sides debated back and forth about the offer, finally settling on $500,000 over four years — making Johnson the highest-paid rookie in league history at the time. With a conclusion reached, the only thing left to do was to celebrate. “Let’s order pizza,” Johnson said.