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This debate was re-kindled by the 2010 Documentary,
A Courtship of Rivals, and mainly revolves around
the issue of accomplishments vs. peak ability. There is little doubt that Earvin "Magic" Johnson boasts a slightly superior resume to Larry Bird. Starting with their 1979 NCAA Title match-up, Magic proved to be the ultimate winner in their individual duel. While Bird struggled in his biggest game, Magic was effective in leading Michigan State to a championship before the largest TV audience ever to watch a basketball game.
After winning a title in 1980, Magic Johnson had proven himself to be a winner over Larry Bird on both the college and pro levels. Bird made things interesting by grabbing the title the next season, but Magic followed that with his 2nd title in 1982. After the Sixers grabbed a random title in 1983, Bird and Magic finally faced each other for the NBA Title in 1984. The Celtics 7-game victory in this series in one of Bird's greatest arguments for supremacy and pulled him even with Magic at 2 titles apiece. There can be no doubt that at this point, Bird was the better player. But, not to be denied, Magic avenged his loss to Bird the following season as the Lakers won their 3rd title of the 80s. 1986 saw Bird lead a stacked Celtics team to his 3rd title, evening their Titles rivalry at 3 apiece.
1987, for me, decided the issue as the Lakers faced the Celtics and prevailed in 6 games. Magic took the lead in championships, 4 to 3, and he did it by defeating Bird and his defending Champion Celtics. This was the peak of Magic's career. By this point, he was a better player than Bird, able to play with quickness and athleticism while also possessing the skill and poise of an experienced star. Bird, from 1987 on, was in a race against his body; a desperate attempt to win again before an ailing back caused his demise. But it was not to be. After 1986, Bird's days as a champion and an MVP were over. While he enjoyed several good seasons after this time, he was never again able to make a serious case that he was the best player in the game, or better than Magic.
With all that said, I have no doubt that Larry Bird at his best was slightly better than Magic ever was. From 1983-84 to 1987-88, Larry Bird averaged 27.3 pts, 9.8 rebs and 6.8 asts. This was his prime. This was better than LeBron James, and it was even better than Magic. Bird also earned 3 MVPs and 2 Titles during this span. With regularity, he was referred to as the best in the game and as the standard of basketball excellence. He was an outside shooter, a low-post scorer, a top rebounder, a 3 point specialist, a superior passer and a simply phenomenal player in the clutch. Magic was chasing him...but in the end, he was caught.
From 1983-84 to 1989-90, Magic Johnson enjoyed his prime. While longer than Bird's, his statistical numbers fall short: 20.5 pts, 6.6 rebs, 12.4 asts. During this time, Magic won 3 MVPs and 3 Titles. Yes, he was the greater winner. But his reliance on other players (James Worthy, Kareem Abdul-Jabbar, Byron Scott) was greater than Bird's reliance on McHale, Parish and DJ.
In conclusion, the answer about who was better between Bird and Magic relies heavily on how you measure effectiveness, or better-ness. If one's individual ability to succeed in a game over any span of time is measured, then Larry Bird from 1983 to 1988 was the better of the two. But the more reasonable conclusion is to accept that Magic Johnson equaled Larry Bird's 3 MVPs and then surpassed him by winning not one, but two more championships. Magic was better for longer and his Lakers defeated Bird's Celtics in 2 out of 3 championship series.
ADVANTAGE: MAGIC