Latest / Earn Your Leisure / Magic Johnson's Billionaire Blueprint: The Story Behind His 125 Starbucks Empire

Transcript

Magic Johnson's Billionaire Blueprint: The Story Behind His 125 Starbucks Empire · Earn Your Leisure

• 0:01
  Speaker 1: Earners.
• 0:01
  Speaker 2: What's up.
• 0:02
  Speaker 3: You ever walk into a small business and everything just
• 0:04
  Speaker 3: works like The checkout is fast, the receipts are digital,
• 0:08
  Speaker 3: tipping is a breeze, and you're out the door before
• 0:11
  Speaker 3: the line even builds. Odds are they're using Square. We
• 0:15
  Speaker 3: love supporting businesses that run on Square because it just
• 0:18
  Speaker 3: feels seamless. Whether it's a local coffee shop, a vendor
• 0:21
  Speaker 3: at a pop up market, or even one of our
• 0:23
  Speaker 3: merch partners, Square makes it easy for them to take payments,
• 0:27
  Speaker 3: manage inventory, and run their business with confidence, all from
• 0:31
  Speaker 3: one simple system. If you're a business owner or even
• 0:35
  Speaker 3: just thinking about launching something soon, Square is hands down
• 0:38
  Speaker 3: one of the best tools out there to help you start, run,
• 0:41
  Speaker 3: and grow. It's not just about payments, it's about giving
• 0:45
  Speaker 3: you time back so you can focus on what matters
• 0:47
  Speaker 3: most Ready. To see how Square can transform your business,
• 0:51
  Speaker 3: visit Square dot com backslash go backslash eyl to learn
• 0:56
  Speaker 3: more that Square dot com backslash, go backslash eyl. Don't wait,
• 1:01
  Speaker 3: don't hesitate. Let's Square handle the back end so you
• 1:04
  Speaker 3: can keep pushing your vision forward. This episode is brought
• 1:10
  Speaker 3: to you by P and C Bank, a lot of
• 1:12
  Speaker 3: people think podcasts about work are boring, and sure, they
• 1:16
  Speaker 3: definitely can be, but understanding of professional's routine shows us
• 1:20
  Speaker 3: how they achieve their success little by little, day after day.
• 1:24
  Speaker 3: It's like banking with P and C Bank. It might
• 1:27
  Speaker 3: seem boring to save, plan and make calculated decisions with
• 1:30
  Speaker 3: your bank, but keeping your money boring is what helps
• 1:33
  Speaker 3: you live or more happily fulfilled life. P and C
• 1:36
  Speaker 3: Bank Brilliantly Boring since eighteen sixty five. Brilliantly Boring since
• 1:41
  Speaker 3: eighteen sixty five is a service mark of the PNC
• 1:44
  Speaker 3: Financial Service Group, Inc. P and C Bank National Association
• 1:48
  Speaker 3: Member FDIC.
• 1:51
  Speaker 1: Let's do something that we haven't done in a while.
• 1:53
  Speaker 4: I want to play a clip because I saw something
• 1:55
  Speaker 4: on Instagram and I posted it yesterday and it was
• 1:57
  Speaker 4: actually very insightful and inspiration at the same time.
• 2:00
  Speaker 1: So can we play this clip. Let's run it. Let's
• 2:04
  Speaker 1: run it.
• 2:04
  Speaker 2: I think that being Magic Johnson that people say, oh,
• 2:07
  Speaker 2: here's a lot of money, and that wasn't the case.
• 2:09
  Speaker 2: Matter of fact, Magic Johnson worked against me and they said, oh,
• 2:13
  Speaker 2: we want your picture and your autograph, but we don't
• 2:16
  Speaker 2: want to give you the money. And so I got
• 2:17
  Speaker 2: turned down seven eight times from banks about getting capital
• 2:21
  Speaker 2: because I wanted growth and sustainability, and the only way
• 2:24
  Speaker 2: I could do that is to use other people's money.
• 2:26
  Speaker 2: So finally I went up to Sacramento to the pension funds.
• 2:30
  Speaker 2: They turned me down three years in a row, but
• 2:33
  Speaker 2: finally the fourth year, cal Perr said, Okay, I believe
• 2:36
  Speaker 2: in you, so I'm gonna give you fifty million dollars
• 2:39
  Speaker 2: and if you're successful with the fifty you can come
• 2:42
  Speaker 2: back and get a hundred more million. And so I
• 2:45
  Speaker 2: invested in a shopping center in the inner cities, bought
• 2:48
  Speaker 2: it for twenty two million dollars, forty percent occupied, took
• 2:51
  Speaker 2: it up to one hundred percent occupied, resold the center
• 2:54
  Speaker 2: for forty eight million, took the twenty six million profit
• 2:56
  Speaker 2: up to Sacramento and they said, oh, I guess you
• 2:59
  Speaker 2: do no business. So that's what got me started. Then
• 3:02
  Speaker 2: I was able to get access to capitol.
• 3:04
  Speaker 1: So this is what happened.
• 3:05
  Speaker 2: I go up to Seattle, knock on Howard Show's door Terman,
• 3:08
  Speaker 2: CEO of Starbucks, and I said, look, minorities, we like
• 3:11
  Speaker 2: coffee too. But we had to drive forty five to
• 3:14
  Speaker 2: our outside our community to get some coffee. So I said,
• 3:18
  Speaker 2: if you build them in our community, they're gonna be very,
• 3:20
  Speaker 2: very successful. And so we did the deal. He came
• 3:23
  Speaker 2: down to see my movie theaters and see how I
• 3:26
  Speaker 2: managed my theaters. That was going to be if he's
• 3:28
  Speaker 2: gonna decide to do the deal or now. And thank god,
• 3:30
  Speaker 2: Whitney Houston's first movie was coming out, Waiting nex Heal,
• 3:34
  Speaker 2: So I had five thousand black women wrapped around the
• 3:37
  Speaker 2: corner to come see this movie.
• 3:39
  Speaker 1: So he walks up and he.
• 3:40
  Speaker 2: Said, man, what's going on here? Yeah, and I said,
• 3:44
  Speaker 2: Waiting ex Hell's coming out, so every theater is sold out.
• 3:47
  Speaker 2: He had to see how we managed the theater, and
• 3:49
  Speaker 2: then we went in to see the movie. The movie
• 3:51
  Speaker 2: pops up about twenty minutes in. See we go to
• 3:54
  Speaker 2: movies different than everybody else. So we start talking to
• 3:57
  Speaker 2: the screen girl while you still with him, and Howard
• 4:01
  Speaker 2: elbowed me had come on out into the lobby.
• 4:04
  Speaker 1: So we went out to the lobby.
• 4:05
  Speaker 2: He said, magic, I haven't had a movie going experience
• 4:08
  Speaker 2: quite like this. Guess what That got me the deal?
• 4:12
  Speaker 2: So it worked out great. We build one hundred and
• 4:14
  Speaker 2: twenty five and the great thing is the headline rolling
• 4:16
  Speaker 2: in the LA Time said, no way minorities to pay
• 4:19
  Speaker 2: three dollars for a cup of coffee. Thomas will pay
• 4:21
  Speaker 2: three dollars for a couple of coffee. We quite don't
• 4:24
  Speaker 2: know what scones are though.
• 4:28
  Speaker 4: Yeah, it's a lot of great lessons inside that clubb
• 4:30
  Speaker 4: you know what a lot of bars. I was like this,
• 4:33
  Speaker 4: this is a case study within itself and shout out
• 4:34
  Speaker 4: to magic because people don't give mad enough enough credit.
• 4:37
  Speaker 4: You know, he's a billionaire, right, I think he's worth
• 4:40
  Speaker 4: He's actually worth more money than lebron He's worth one
• 4:42
  Speaker 4: point four billion dollars according to according to Forbes, and
• 4:46
  Speaker 4: man his journey because especially at that time, Starbucks didn't
• 4:49
  Speaker 4: even franchise their locations. He actually had the part he's
• 4:52
  Speaker 4: one of the first people to actually get a Starbucks
• 4:53
  Speaker 4: outside the Starbucks ownership and he opened one hundred and
• 4:57
  Speaker 4: twenty five starbuckss. And for me personally, when I saw
• 5:01
  Speaker 4: that story, I thought it was pretty interesting because access
• 5:04
  Speaker 4: to capital something that we speak a lot about, right,
• 5:06
  Speaker 4: even him, he had to prove himself and he had
• 5:08
  Speaker 4: to maneuver get an assets selling assets to actually prove
• 5:11
  Speaker 4: that he can actually be worthy of the access to capital,
• 5:15
  Speaker 4: and then from a scalability standpoint, you started off with
• 5:19
  Speaker 4: one hundred and twenty five.
• 5:20
  Speaker 1: He didn't start off with one or two.
• 5:22
  Speaker 4: Right, but all sort of the power, the cultural power, right,
• 5:27
  Speaker 4: That movie kind of sealed the deal for him. That
• 5:30
  Speaker 4: was if he said, five thousand black women wrapped around
• 5:32
  Speaker 4: to see the thing, and just his ability to actually
• 5:39
  Speaker 4: know that there's something in the marketplace that needs to
• 5:43
  Speaker 4: be done, as far as not having something the smallest
• 5:46
  Speaker 4: we don't have coffee shops in the neighborhood, right, that
• 5:48
  Speaker 4: turns into and then Magic actually ended up selling his portfolio.
• 5:52
  Speaker 1: He's like a junior Bridgeman.
• 5:53
  Speaker 4: He sold, He sold all of his portfolio, then starts
• 5:57
  Speaker 4: buying a life for a life insurance company heavy in
• 6:00
  Speaker 4: real estate, and then he starts buying sports sports teams
• 6:03
  Speaker 4: like he's he's part owner in the Washington Football Commanders,
• 6:07
  Speaker 4: he's part owner in Dodge Dodgers. It's the Lakers too,
• 6:11
  Speaker 4: La Sparks, Lakers, not Lakers Sparkers Sparks. So he like
• 6:16
  Speaker 4: he literally climbed his way into that billionairesta It wasn't
• 6:19
  Speaker 4: like one thing, like he really had to scratch and
• 6:21
  Speaker 4: crawl to become a billionaire, and the stories like that,
• 6:26
  Speaker 4: I think sometimes it's just really inspirational and also informational
• 6:31
  Speaker 4: as well to actually see. So when I saw that,
• 6:33
  Speaker 4: I'm like, damn, this is kind of like this is
• 6:35
  Speaker 4: some good game and like two and a half minute clip.
• 6:37
  Speaker 3: Yeah, And he understood culture. He understood cultural needs. Before
• 6:40
  Speaker 3: the Starbucks, it was the movie Ditters. So like even
• 6:43
  Speaker 3: having a movie in environments where you know, Regal or
• 6:47
  Speaker 3: Cinema wouldn't put it, he said, like, we'd like to
• 6:49
  Speaker 3: go to the movies too, And so you had the
• 6:50
  Speaker 3: Magic Johnson Ditters in parts of la where nobody would
• 6:54
  Speaker 3: put him. We had a Magic Johnson did it in
• 6:56
  Speaker 3: one twenty fifth Street where nobody thought. People, you know,
• 6:58
  Speaker 3: we like going to the movies, we're gonn and support
• 7:00
  Speaker 3: it and so out once you bring it, they'll come.
• 7:03
  Speaker 3: And then now you can build infrastructure around it. So
• 7:05
  Speaker 3: then you get the starbus and you get other retail
• 7:08
  Speaker 3: spaces to add to what you already had.
• 7:10
  Speaker 1: So I mean it was brilliant.
• 7:12
  Speaker 5: It was brilliant, and I think a great lesson in
• 7:14
  Speaker 5: performing at a high level no matter what you're doing,
• 7:17
  Speaker 5: Like the thing that you're doing now is going to
• 7:19
  Speaker 5: lead to the next example. Like I was talking to
• 7:23
  Speaker 5: it's just weeking shot out to my guy. He was
• 7:25
  Speaker 5: asking about Africa as well. I'm like, all roads lead
• 7:28
  Speaker 5: to a certain place, but it's about how can you
• 7:31
  Speaker 5: do one thing incredibly well and then people will open
• 7:34
  Speaker 5: up the opportunities for you to do other things. I
• 7:36
  Speaker 5: think it's a great lesson to not be little anything
• 7:39
  Speaker 5: that you're doing, because people are gonna watch your level
• 7:43
  Speaker 5: of work, ethic and your efficiency for the next opportunity.
• 7:46
  Speaker 5: So hell of a lesson, the hell of a clip all.
• 7:49
  Speaker 1: Of the said.
• 7:49
  Speaker 3: He put the magic Johnson did in the Jungles.
• 7:52
  Speaker 1: Who was gonna put a movie did today?
• 7:54
  Speaker 4: You know, he put it in like all the ncy
• 7:59
  Speaker 4: because at that time people take it for granted. But
• 8:01
  Speaker 4: at that time there was no movie theaters.
• 8:03
  Speaker 1: It done. It wasn't done in the inner city.
• 8:06
  Speaker 4: So he had the foresight to put movie theaters in
• 8:08
  Speaker 4: the inner city that work. Then he had the foresight
• 8:11
  Speaker 4: to put Starbucks in the inner city that works.
• 8:13
  Speaker 3: So and his name alone attracted people to come to it,
• 8:17
  Speaker 3: not just regular patrons. I remember going just a few
• 8:20
  Speaker 3: years ago, it was like there was premiers. People were
• 8:22
  Speaker 3: having their premiers at his theater. Mission Impossible was there,
• 8:26
  Speaker 3: like Paul Patrol was there, Like premiers are coming just
• 8:29
  Speaker 3: because of the cachet of the name associated with the
• 8:31
  Speaker 3: person who was owning the theater. So you know, it's
• 8:35
  Speaker 3: an incredible story in entrepreneurship. But it's also an incredible
• 8:38
  Speaker 3: story in leadership. Yes, we know from being on the court,
• 8:40
  Speaker 3: but like, look at how he's leading in business.
• 8:44
  Speaker 5: And on top of it. I would say to all
• 8:46
  Speaker 5: my black entrepreneurs, don't let anyone make you think that
• 8:49
  Speaker 5: there's not opportunity or money and solely investing in or
• 8:53
  Speaker 5: targeting black people. Target is going through hell right now
• 8:58
  Speaker 5: for a few decisions, or taking us for granted, Nike
• 9:02
  Speaker 5: is going through hell right now for a few bad decisions.
• 9:06
  Speaker 5: They always want to tell us that it may not
• 9:08
  Speaker 5: be an ideal target market. But I think we've proven
• 9:11
  Speaker 5: that's not true. But if you don't believe me, believe target.
• 9:14
  Speaker 3: Yeah, I mean, how many quarters in a row we're
• 9:16
  Speaker 3: gonna have to see the target not meet the expectations.
• 9:19
  Speaker 1: I saw. The next one is now Dollar General. There's
• 9:21
  Speaker 1: a target, Well.
• 9:24
  Speaker 5: You better call you bet you want the clock CARTI, Stephanie,
• 9:32
  Speaker 5: call everybody black, you know.
• 9:35
  Speaker 1: Not CARDI busy right now dealing with some other stuff.
• 9:39
  Speaker 4: That's a fact, Solutor Cardy. But yeah, but not shout
• 9:42
  Speaker 4: out to shout out to Magne. Maybe once a month
• 9:45
  Speaker 4: we could do like a business highlight. I want somebody
• 9:48
  Speaker 4: that has, you know, risen to a high level of success.
• 9:51
  Speaker 4: And like I said, that mean, there's only a handful
• 9:53
  Speaker 4: of black billionaires in the United States of America from America.
• 9:56
  Speaker 1: And I'll talking quite a few though he's.
• 9:59
  Speaker 4: Number seve so he's one of the richest black people
• 10:02
  Speaker 4: in American history. On a low I don't think. I
• 10:05
  Speaker 4: don't think he gets enough credit or enough recognition. So
• 10:09
  Speaker 4: we got to highlight our superheroes while they're still living.
• 10:12
  Speaker 4: So salute the Magic Man, congratulations on achieving that billionaire status,
• 10:17
  Speaker 4: and keep pushing the culture forward.
• 10:19
  Speaker 6: An illegal alien from Guatemala charged with raping a child
• 10:22
  Speaker 6: in Massachusetts. An MS thirteen gang member from Al Salvador
• 10:26
  Speaker 6: accused of murdering a Texas. Man of Venezuelan charged with
• 10:31
  Speaker 6: filming and selling child pornography in Michigan. These are just
• 10:35
  Speaker 6: some of the heinous migrant criminals caught because of President
• 10:38
  Speaker 6: Donald J. Trump's leadership I'm Christy Noman, the United States
• 10:42
  Speaker 6: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 10:47
  Speaker 6: crossings are at the lowest levels ever recorded, and over
• 10:50
  Speaker 6: one hundred thousand illegal aliens have been arrested. If you
• 10:54
  Speaker 6: are here illegally, your next you will be fine nearly
• 10:58
  Speaker 6: one thousand dollars a day in and deported. You will
• 11:02
  Speaker 6: never return. But if you register using our CBP home
• 11:05
  Speaker 6: app and leave now, you could be allowed to return legally.
• 11:09
  Speaker 6: Do what's right, leave now. Under President Trump, America's laws,
• 11:14
  Speaker 6: border and families will be protected.
• 11:17
  Speaker 1: Sponsored by the United States Department of Homeland Security,