Skip to main content

Sterling is clueless; Here's the Magic Johnson I know

By Rick Wade
updated 4:00 PM EDT, Tue May 20, 2014
STORY HIGHLIGHTS
  • Rick Wade says Magic Johnson has put his money where his mouth is in the urban market
  • Donald Sterling criticized Johnson: "What does he do for the black people? He doesn't do anything."
  • Sterling, says Wade, is just dead wrong
  • Johnson has invested in real estate, theaters, restaurants, sports teams and Starbucks franchises

Editor's note: Rick C. Wade is an entrepreneur, former deputy chief of staff for the secretary of commerce, and recently dropped out as a candidate for a U.S. Senate seat in South Carolina. You can follow him on Twitter @RickCWade. The opinions expressed in this commentary are solely those of the author.

(CNN) -- Last month I joined Earvin "Magic" Johnson to watch the Los Angeles Clippers and Golden State Warriors at the Staples Center, and I became immersed in the excitement of a great NBA game.

My excitement would later turn into disappointment and anger as a result of the controversial statements made by Clippers owner Don Sterling.

All of his statements are troubling, but his most recent -- that Magic Johnson hasn't done anything to help the black community -- is just dead wrong.

That Sterling -- who has until May 27 to respond to the NBA's charges and efforts to terminate his ownership rights -- equates help with handouts shows his flawed and outdated understanding of charity and philanthropy. While Sterling gave an inconsequential amount of cash to the L.A. chapter of the NAACP to help dilute his well-documented record of racism, Magic used his millions to bring economic development to struggling black communities, to create businesses and jobs, to encourage black entrepreneurship and to inspire other black businessmen and businesswomen to invest in inner cities.

Rick Wade
Rick Wade

The protracted discourse this country has been having about race and the NBA offers a real opportunity to foster a more long-term solution to the economic disparity in black communities.

The NBA and players should work together to create more pathways to team ownership and more business opportunities across the league's supply chain for African-Americans and other minorities. This would be good not only for the league and players, but for minority businesses, fans, and the many youngsters who aspire to sports careers. I can't think of a better person to help lead such efforts than Magic.

What Sterling doesn't understand, but Magic does, is that "help" in the 21st century economy is about investing in people and communities so that they can become economically empowered. It's about providing opportunities that can make individuals more financially independent and make black families more financially solvent. It's about creating businesses that bring money into black communities, and keeping the money there.

Opinion: The 5 apology rules that Sterling broke

Unlike many professional athletes, Magic has always understood the economic impact of sports and sought to extend his financial clout to the broader community. As he said in a recent interview with CNN's Anderson Cooper, "My whole life is devoted to urban America. We go back and educate others on how they can be successful. It's not about giving them money. It's about giving them tools."

Whether through real estate investments, Magic Johnson Theaters, restaurants, fitness centers, sports teams or Starbucks franchises, Magic has been transforming urban centers and in doing so may attract other businesses that wrote off black communities and their buying power.

Sterling: Magic Johnson acts so holy
Magic: Sterling 'living in the stone ages'
Friend: Magic wouldn't plot against him

Over the last three decades, startups by entrepreneurs -- companies less than five years old -- have accounted for most of the new jobs in the private sector. Arguably, the scarcity of these new, dynamic, fast-growing companies in black communities has contributed to some of the chronic unemployment we see today, the very joblessness that often lies at the root of so many of our broader social problems, from drug dealing and gang violence to neighborhood decay and broken families.

These challenges defy easy solutions. However, a new corner store here or a barbershop there can't create widespread economic opportunity. Targeted government programs can help, but long-term, private-sector investment is absolutely critical for economic sustainability.

Magic understood early on the business of basketball. He leveraged his relationships and successfully made the transition from athlete to entrepreneur. He is an important role model to youngsters who are eager to be successful in sports but clueless about how to get there.

Opinion: Sterling apology was an epic fail

I witnessed firsthand the sway that Magic had as a surrogate during the 2008 presidential race, when I was a senior adviser to the Obama campaign, coordinating the involvement of many athletes and entertainers.

Young people responded enthusiastically to Magic, energized by their hero and the prospect of a young black president who played ball himself. Few of these young people will become NBA players, but lots can own businesses.

Magic represents an important nexus between the little boys who play on the neighborhood basketball courts and the big boys who play on Wall Street. His entrepreneurship represents the bridge from poverty to prosperity.

Other professional athletes can build bridges, too, but they have to see themselves as modern-day entrepreneurs with real power to make a difference, as comfortable speaking in corporate boardrooms as they are playing ball, and as interested in owning businesses as they are in being big-ticket consumers with expensive homes and cars.

The NBA generates over $4 billion annually and the top 10 players reportedly earn a combined $200 million dollars combined each year. With that kind of money they can afford to invest in high-growth companies in energy, technology and advanced manufacturing that create high paying jobs. Athletes also can challenge companies whose products they endorse to locate manufacturing and distribution facilities in distressed urban areas.

While they're at it, they should certainly work towards pooling their resources, buying teams, and ensuring a culture of diversity, integrity and mutual respect.

Unlike Don Sterling's shameful and insincere attempts to buy credibility in the black community, that's something the players' millions can actually attain.

Follow us on Twitter @CNNOpinion.

Join us on Facebook.com/CNNOpinion.

ADVERTISEMENT
Part of complete coverage on
updated 12:50 PM EDT, Tue July 29, 2014
LZ Granderson says the cyber-standing ovation given to Robyn Lawley, an Australian plus-size model who posted unretouched photos, shows how crazy Americans' notions of beauty have become
updated 7:56 AM EDT, Mon July 28, 2014
A crisis like the Gaza conflict or the surge of immigrants can be an opportunity for a lame duck president, writes Julian Zelizer
updated 2:22 PM EDT, Sat July 26, 2014
Carol Costello says the league's light punishment sent the message that it didn't consider domestic violence a serious offense
updated 8:51 AM EDT, Mon July 28, 2014
Danny Cevallos says saggy pants aren't the kind of fashion statement protected by the First Amendment.
updated 2:52 PM EDT, Mon July 28, 2014
Margaret Hoover says some GOP legislators support a state's right to allow same-sex marriage and the right of churches, synagogues and mosques not to perform the sacrament
updated 2:31 PM EDT, Mon July 28, 2014
Megan McCracken and Jennifer Moreno say it's unacceptable for states to experiment with new execution procedures without full disclosure
updated 2:50 PM EDT, Mon July 28, 2014
Priya Satia says today's drones for bombardment and surveillance have their roots in the deadly history of Western aerial control of the Middle East that began in World War One
updated 12:35 PM EDT, Mon July 28, 2014
Jeff Yang says it's great to see the comics make an effort at diversifying the halls of justice
updated 11:55 AM EDT, Sat July 26, 2014
Rick Francona says the reported artillery firing from Russian territory is a sign Vladimir Putin has escalated the Ukraine battle
updated 2:22 PM EDT, Sun July 27, 2014
Paul Callan says the fact that appeals delay the death penalty doesn't make it an unconstitutional punishment, as one judge ruled
updated 6:25 PM EDT, Thu July 24, 2014
Pilot Robert Mark says it's been tough for the airline industry after the plane crashes in Ukraine and Taiwan.
updated 11:10 AM EDT, Fri July 25, 2014
Jennifer DeVoe laments efforts to end subsidies that allow working Americans to finally afford health insurance.
updated 11:33 AM EDT, Sat July 26, 2014
Ruti Teitel says assigning a costly and humiliating "collective guilt" to Germany after WWI would end up teaching the global community hard lessons about who to blame for war crimes
updated 8:45 AM EDT, Fri July 25, 2014
John Sutter responds to criticism of his column on the ethics of eating dog.
updated 9:02 AM EDT, Fri July 25, 2014
Frida Ghitis says it's tempting to ignore North Korea's antics as bluster but the cruel regime is dangerous.
updated 2:50 PM EDT, Fri July 25, 2014
To the question "Is Putin evil?" Alexander Motyl says he is evil enough for condemnation by people of good will.
updated 2:03 PM EDT, Thu July 24, 2014
Laurie Garrett: Poor governance, ignorance, hysteria worsen the Ebola epidemic in Sierra Leone, Guinea, Liberia.
updated 9:49 AM EDT, Thu July 24, 2014
Patrick Cronin and Kelley Sayler say the world is seeing nonstate groups such as Ukraine's rebels wielding more power to do harm than ever before
updated 6:05 PM EDT, Wed July 23, 2014
Ukraine ambassador Olexander Motsyk places blame for the MH17 tragedy squarely at the door of Russia
updated 7:42 AM EDT, Thu July 24, 2014
Mark Kramer says Russia and its proxies have a history of shooting down civilian aircraft, often with few repercussions
updated 2:53 PM EDT, Thu July 24, 2014
Les Abend says, with rockets flying over Tel Aviv and missiles shooting down MH17 over Ukraine, a commercial pilot's pre-flight checklist just got much more complicated
updated 9:17 AM EDT, Thu July 24, 2014
Mark Kramer says Russia and its proxies have a history of shooting down civilian aircraft, often with few repercussions
updated 12:37 PM EDT, Thu July 24, 2014
Gerard Jacobs says grieving families and nations need the comfort of traditional rituals to honor the remains of loved ones, particularly in a mass disaster
updated 10:13 AM EDT, Thu July 24, 2014
The idea is difficult to stomach, but John Sutter writes that eating dog is morally equivalent to eating pig, another intelligent animal. If Americans oppose it, they should question their own eating habits as well.
updated 12:30 PM EDT, Wed July 23, 2014
Bill van Esveld says under the laws of war, civilians who do not join in the fight are always to be protected. An International Criminal Court could rule on whether Israeli airstrikes and Hamas rocketing are war crimes.
updated 10:08 AM EDT, Wed July 23, 2014
Gordon Brown says the kidnapped Nigerian girls have been in captivity for 100 days, but the world has not forgotten them.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT