Buss said that his decision was based on his projected rate of inflation and the salary Johnson could command as a free agent. He said he was certain Johnson could get $2 million in two years on the free-agent market.

''The $1 million a year I'm paying covers all his basketball playing,'' Buss said. ''You have to figure the kid has 10 years of playing left. After that, you and I both know he will be a legend. And he'll know plenty about basketball and business because I'm going to teach him.

''I know that $1 million a year past basketball sounds exorbitant. But consider this: 14 years from now, the average secretary - not good ones mind you, but average ones - will be making $60,000 a year. So Magic's services, as coach or GM or whichever direction we mutually choose to take, are worth $1 million a year to me.''

Johnson, who was in Lansing, Mich., with his family, could not be reached for comment. Johnson turned professional two years ago after he led Michigan State to the national collegiate title as a sophomore. In his rookie season, the Lakers won the N.B.A. title.

He was named the Most Valuable Player of the championship series after scoring 42 points against Philadelphia in the sixth and deciding game. The 6-foot-9-inch guard started at center for the injured Abdul-Jabbar.