# Magic Johnson Watches Kareem Lose Fortune

> Magic Johnson saw Kareem Abdul-Jabbar lose nearly all his money after a business manager mishandled his finances.
- Title: Magic Johnson Watches Kareem Lose Fortune · EssentiallySports
- Summary: Magic Johnson saw Kareem Abdul-Jabbar lose nearly all his money after a business manager mishandled his finances. Kareem Abdul-Jabbar lost nearly his entire…
- Keywords: kareem abdul-jabbar, magic johnson, nba, business manager, financial loss, lakers, nba legends, sports, Magic, Johnson, Watches, Kareem
- Source: EssentiallySports — https://essentiallysports.com/nba-legends-basketball-news-all-his-money-was-gone-magic-johnson-watched-kareem-lose-nearly-his-entire-fortune
- Author: Prit Chauhan
- Published: 2026-10-19T16:37:14+00:00
- Read time: 1 min
- Topics: kareem abdul-jabbar, magic johnson, nba, business manager, financial loss, lakers, nba legends, sports
## Kareem's Financial Crisis
By 1986, Kareem Abdul-Jabbar was so overextended he borrowed money from his business manager to cover living expenses.
## Magic Johnson's Account
Magic Johnson wrote about Kareem losing his fortune after a business manager mishandled his finances.
## Business Manager's Control
Abdul-Jabbar gave Thomas Collins broad control to sign checks and take loans in his name for six years.
## Financial Losses
Collins lost nearly $300,000 on a cattle-feed venture and caused $9 million in debt by 1986.
## Fire Damage
A 1983 fire destroyed 90% of Kareem's Bel Air home, including trophies and uninsured rugs.
## Collins' Reputation
Collins was denied certification as a player agent in 1990 after mismanaging Kareem's finances.
## Magic's Approach
Magic Johnson built his fortune by learning from successful executives and checking every deal himself.
## Key takeaway

Kareem Abdul-Jabbar lost nearly his entire fortune due to his business manager's mismanagement, while Magic Johnson built his wealth through mentorship.