Chris: There's only four billionaire people in sports. You have LeBron, you have Jordan, you have Tiger, and then we got... Introducing the towering point guard from the Midwest. Number 32, Magic Johnson.

Magic Johnson: How you did it was not just sports, but majority from business. I don't just want to win in sports, which I have 18 championship rings. I also want to win in business. I'm going to do everything I can to make sure that deal or that partnership wins.

Chris: Yes. When we bought the Dodgers 2.2 billion where everybody said we overpaid. Now it's 8 billion. The Commanders is 2 years old now. 6 billion. And now that the new stadium that's going to go even up higher. We pour so much money into sports. And nobody's ever going to stop watching sports in America. Right now you got companies looking to buy teams.

Magic Johnson: It's always been an asset class, but now people really see the long-term reality. Most of the rich people before us took the knowledge with them. They didn't share it. This show right here today, we covered everything. There's nobody else on TV that can cover all the things you and I just covered.

Chris: I'm glad you're able to come through today, man. I think this is important for a lot of people and a lot of different reasons, too. Look, I think that, you know, like you said, this is a culmination, I think almost 10 years of from investments to conversations to, you know, having you come up to San Francisco talking about venture, expanding the portfolio and we wanted really just to take the time today because, you know, you are one of the ultimate deal makers, businessmen, entrepreneurs, and that's also the same ecosystem that we have here at A16Z. And I felt like there was no better way to have a conversation that bridged both worlds than to have you come on today.

Magic Johnson: Again, thank you because you brought me in though. You know, I think a lot of times, somebody has to pull your coattail or somebody has to make sure that you can see deals or you can see opportunities. And I want to thank you for 10 years making sure that I've had a chance to see these great opportunities that I've been have a chance to invest in. So again, you being in there, being an executive, being a dealmaker yourself and then bringing in so many different artists and athletes who now can say they're businessmen or business women because of you.

Chris: Well, it's not I might have played a big part on the investment side in terms of getting people into Silicon Valley and getting them and understanding, you know, the benefits of equity versus endorsements, but you know, you were the one that actually pioneered, you know, getting into business itself. And, you know, a funny story that actually inspired me and I think that we have one tie-in from the very beginning. And that's actually one of my first mentors when I first got into Silicon Valley, and that was actually Michael Ovitz. And so I don't know if you know that, but the firm was actually built off of CAA's model and Ovitz was on the board of Ben's company. And so that's where they originally got the idea for A16Z and having a service-based model. When I first got the job, my position was actually a code word. It was called "mini Ovitz." Ben was like, we can't call you mini Ovitz. The funny story is that he told me, "Chris, first order of business, I need you to have a breakfast, lunch and dinner meeting every single day for a year and then come back to me and let me know what you learned." It was really important to understand how to build a network. But I say that because he also first talked to you when you were thinking about getting into the game.

Magic Johnson: Yeah. I told Dr. Jerry Buss, the owner of the Lakers, that I wanted to become a businessman. He became my first mentor. But then he told me, "Listen, you need to meet a guy named Michael Ovitz." The King Deal maker. In Los Angeles and in the country, right? And so I said, "Okay." So I reached out to Michael Ovitz and I said, "Hey, I would like to take a meeting with you because I want to become a businessman after my playing career is over." And he said, "All right, come on in." So Chris, I get there and I think the meeting was around 2 o'clock. Of course, I'm early for everything. So I got there about 1 and I'm sitting in the lobby. It's 3:00. It's 4:00. And now finally it's 5. So the assistant come out and get me and I go into his office and he shakes my hand. And the first thing he says, "You know, I don't know about representing you. Athletes, they spend more money than they make. I don't know if you're serious. I don't know if you have what it takes to become a businessman. I represent everybody in Hollywood. Nice meeting you." And he threw me out.

Magic Johnson: A couple weeks later, he calls back and he says, "I checked you out. And Dr. Buss told me that you were serious. Come back." So, I came back and he had a stack of magazines and he said, "Here, you read these. And I'm gonna give you a test. And if you pass the test, then I'll think about representing you." So, of course, I went back and read them all. I passed the test and he said, "I see you're serious about becoming a businessman." So he took me all around town. Meeting everybody. He taught me so much not just about business about just the art of deal making and and also making sure you have a long and big rolodex. You know and you might not need the people today but you may need them tomorrow.

Chris: Well, I mean because even on our business there's three different sides. First you have to be able to see the deal. The next stage is saying okay I actually want to make that investment. But the third stage is actually the most important stage which is winning the deal. You know in terms of being able to identify those right opportunities and then being able to execute. Execution and more execution. A lot of it really does come down to relationships. In venture, it's a very long-term game. You have to give first in order to have these things happen.

Magic Johnson: Yeah, you're right because I built a fabulous relationship with Ron Burkel. I knew Ron for 10 years before we actually did a deal together. When you think about customer service, that's what really it taught me everything I needed to know about customer service. Having a great partner and going into Starbucks and really understanding the business side of it. Your margins were incredible. I've been blessed to create not only great partnerships, but also having these people as friends. So I really look at it like when you come into business with these people, you have to play your role and do your part. I tell them, "What role do you want me to play in this partnership?" So I'mma overdeliver to you and to the company. Now I'm playing a role player in business with these men.

Chris: I think one of the things that you can be a sponge of is not just one specific industry but multiple different verticals.

Magic Johnson: There was nothing sexy about anything that I invested in. Boring businesses keep... that's a secret. Everybody wants to find the hottest company and sometimes that might be a trend. But the ones that are boring and people don't know about or care about, those are the ones who are on a consistent making money or going up, you have growth. And so that's where I want to be.

Chris: No one bats a thousand. We have the Babe Ruth effect where I have the highest number of strikeouts, but you also have the highest number of home runs. Do you have one in your memory where you missed the deal or looked at it wrong?

Magic Johnson: Yeah, Chris, there's always deals that you wish that you had wrote the check and you didn't. And then you have a deal like Nike when I was young and they wanted to sign me but give me stock. Phil Knight said, "I don't have the money they have, but I got stock." If I had did that deal in 1979, it'd be over a billion dollars. So that's the one that got away, man. But at the same time, I'm not a guy who goes backwards a lot. I move forward.

Chris: When we first met, we met in Silicon Valley when we were doing the Skydio deal. What was the interest when you were thinking about expanding your business portfolio to get into startups and Silicon Valley when nobody else was really doing it?

Magic Johnson: Well, first of all, I was looking for what's the next growth opportunity for me and my company. So I said, "Wow, all the money is going towards Silicon Valley. How do I get into that world?" And then here you come. I just needed that foot in the door. You provided that foot in the door for me and Ben as well. Here comes this opportunity with Skydio and the drones. The product wasn't even... it was still in prototype. That deal provided me with a track record in Silicon Valley and then opened up the doors for me to see other opportunities.

Chris: Now they use drones for everything. We were way ahead of the curve. What do you look for in founders or the next entrepreneur that's trying to have you become their investor?

Magic Johnson: Well, I think first of all, is it something that is not in the marketplace? Can we really look at this 10 years from now that it's going to still be here? It has growth potential. And then do we have a chance to exit or sell down the line? I want these founders to have skin in the game. They also are experts at what they do. And then we also look at it: Can we bring added value? Being Magic Johnson, all the things that we have in our toolbox, can we bring added value to the deal or to that founder and make that company grow?

Chris: Now you're seeing some of the most high-profile celebrities owning their own brands. How are you seeing those worlds like AI and blockchain develop?

Magic Johnson: Technology just keeps going and growing. AI now is going to blow people's mind. It's only going to get better. I think everybody's now moving money to invest in AI. I say to everybody, you got to get in early. Look who else is investing. If they got a track record of success and they wrote a check, I'm writing my check.

Chris: You've recently had an opportunity to join the cap table on Alchemy Health and also with Function Health. You're developing an amazing portfolio in the intersections of AI and bio.

Magic Johnson: Yeah, because there's heavy demand. Just like you look at AI, it's heavy demand for it across every industry, it's going to help everybody. Lower your cost, you're going to be more efficient. I want to make sure companies are on the cutting edge.

Chris: Let's just break down when we bought the Dodgers 2.2 billion. Now it's 8 billion. Dr. Buss bought the Lakers for $65 million. They just sold for $10 billion. Why do the valuations of these teams continue to skyrocket?

Magic Johnson: Because nobody's ever going to stop watching sports in America. That's our release. That's our get away from our everyday work life. And then streaming came in. All those companies really allowed these leagues to grow because they all want sports content. Look at the WNBA, we were losing money. But we thought that someday it would change. Now the team is worth like $300 million and growing. Soccer in America, same thing. LAFC, valuation over a billion dollars.

Chris: For the founders that are thinking about building and scaling their teams, what is your methodology of thinking?

Magic Johnson: Invest in analytics and marketing. You got to have a whole staff because that's how you win in today. And then identity. What is your identity? Who are you? Michael always pointed that out to me: Get people who are smarter than yourself. Get the right people and always pay them and then let them do their thing.

Magic Johnson: And then last but not least, don't be afraid to partner. See that myth, we got to get rid of that myth that you got to be the only one. You and I are partners. It's okay to collaborate.

Chris: I appreciate. You've been my inspiration behind everything when in terms of taking business and bridging these worlds together.

Magic Johnson: The downfall of minorities have been most of the rich people before us took the knowledge with them, didn't share it. It's been a blessing man to sit here with you so that we can educate and also help others. It's doable if you put the time in.