When it comes to doing business, Jay-Z seems to have been graced with the Midas touch. The rapper has been involved in numerous lucrative business deals, and was recently placed at number one on Forbes’ “Top Earning Couples” list with wife and singer Beyonce.
On Thursday, however, Jay filed a $3.7 million lawsuit against investment firm Highland Capital Management over a 2007 loan for a hotel that was never opened. During that time, Hov reportedly borrowed $52 million to open his own hotel in Manhattan, to be christened the J Hotel. In order to avoid repossession, however, the rapper was forced to sell the loan to Highland when the property value fell due to an uncertain economy.
Jay-Z’s lawsuit claims that Highland’s unresponsiveness and consistent delay of negotiations regarding the loan led to a loss of $20,000 a day. According to the lawsuit, “This action arises out of the efforts by defendants [Highland Capital Management] to bleed additional funds from the plaintiff [Jay-Z].”
In response to the claim, the investment firm offered its own response. It said in a statement, “Highland believes the claims asserted by Mr. Carter are meritless, and [the company] will vigorously defend itself and intends to pursue the obligations owed to Highland’s investors by the borrower, Mr. Carter and the other guarantors.”
No word yet on when the trial will happen.
hotels are only $52 mil??? damn the economy is bad.
i sold mine for $120 a while back
…And when you passed Go, did you collect $200?
“fuck you, pay me”
you pay me now!
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I don’t see Jay tryin to scam an investment firm for $$$, that just doesn’t make any sense. Why would he waste his valuable time trying to get money this way?
But this investment firm, they deal with $$$ all day every day, they know the tricks and the ins and outs. BUT they shouldnt have tried to slip one past Jay … now his lawyers will earn their pay and get Jay that $$$$$$$$ !
Sounds like the ole Senator Clay Davis move (The Wire). Shiiiiiiiiiiiiiiiit!!!
Suing for $3.7 million? What happened Jigga? What was the hotel going to be about anyway? Playing loud, profanity laced rap music during the morning buffet, or having a talentless hack like freeway perform at the live band area at the lobby? Having rocawear as the default choice of clothes placed in the room cupboards?And having 40 oz in the minibar ? No CNN, ABC, CBS etc. Just BET and MTV? And having hookers as hotel staff?
No wonder highland Capital had reservations doing business with you. You’re better of selling crack to kids and then bringing that money into legitimate business started by other people’s hard work and turning black money into ‘good’ money.
Go back to rapping fool. That is, if you can stop yourself from delivering another dud like your previous 3 albums.
Stans can start to dub me what they call a ‘hater’. I can understand you must be high on the crack he sold you as well.
Just because he’s a rapper doesn’t mean he’d fall into such a stereotypical-style of management. Anybody with half of a mind would realize doing all those things would garner little appeal and end up being a commercial failure. Jay-Z’s showed at least a little buisness savvy so I’d doubt he’d do something this moronic.
I will admit that he’s last 3 albums were duds though…
Damn – so Jay Z’s gotta chase 3.7 million on the pretext of some ol business bullshit? Laughing out loud! This nigga’s supposedly got enough chedda to not bother with small scale shit like this – or has he?
If you know the real world of business you know that all the Forbes/Fortune/Wall Street mags like to put out that the wealthy are wealthy in fact while often they are on wealthy on paper. So the ageing rapper appears on Forbes cover with his ‘wife’ Beyonce but their wealth like that of most entertainers and most ‘multi millonaires’ who aint the powers they pretend is mostly on paper.
You’ve gotta look at the income after taxes – and Uncle Sam takes half. Yeah you’ve got tax havens but they aint what they used to be and you’ve gotta look at expenditures, Jay Z’s business ventures that are losing money (the 40 40 places which didn’t pay their employees properly – often a sign not just of exploitative owners like Jay Z but of running on a loss) and the rest.
Paper wealth like the white mags focus on is different from the reality of expenditures and loss. The Global Meltdown has wiped out the wealth of ‘multi millionaires’ like Jay Z and Beyonce in stocks for a start.
Recall that Jay Z lived like husband and wife with Larry Johnson, NFL player, in Trump Towers. These niggas didn’t own the place – they were doing a form of renting. If Jay Z really had that chedda the nigga would have bought the place outright. Most rappers and other musicians are renting their places in France or wherever their publicist says they ‘ive’.
It’s just fronting – Jay Z’s got money but most of it’s on paper . And wait til he does something his white industry owners don’t like (don’t mean standing up for niggas because he aint gonna do that). You’ll find the nigga will owe money left, right and centa and lose the shit he does own.
REALBIZ is a HOMO. What nigga worries about another niggaz paper. Get yours FUCKFACE!!!
3.7 million is small scale?? I can’t begin to grasp that.
The monies are investments son. Look at Warren Buffett for instance: the man has a net worth of over $50 billion dollars, but he only pays himself a salary of $100,000 a YEAR. He lives in the same home he grew up in over 30 years ago.
But that doesn’t mean he’s broke. If he needs to shift the money in the right place he would. But smart business men who make moves always keep their money recycling into investments. Warren’s money is tied into his company and stocks — just like Jay-Z.
So, what is your point even? Just because the money is on paper doesn’t mean it’s not HIS; minus taxes and yada yada.. but who doesn’t have that problem?? He’s still $200 million richer than you.
I guess your saying Jay-Z does not have the money that Forbes says he has because he is going to court about 3.7 million dollars. Now some of your statement is correct in that alot of measured wealth is on paper like stocks, bonds, and other investments that have not actually matured or been realized. That wealth is based on the potential of the investment, but Jay-Z’s is not primarly based on investments, his wealth has been accumulated over years for providing goods and services i.e. concerts you receive actually payment for that. He is now able to make investments.This is when your money is working for you and even then you’re not using your own money, you take out a loan (the 52 million that caused this problem) or have a group of people with money to invest with you.that spreads the risk out so if the investment does not pan out and goes south no one investor takes a huge hit. But I digress. The investment for the hotel was not feasible at the time he sold the loan to Highland Capital, because the primary source of repaying the loan is no longer a viable option but you are still on the hook for the repayment of the 52 million you don’t want the loan to go in default and you want the most favorable terms of repaying the loan thus the need to renegotiate the terms of the loan, but until the new terms are agreed to you are paying back the loan at the higher rate so they prolong the time frame until the negotiations. Let me put it in terms you can understand because it’s hard for some one like you to fathom #’s this big, Say when you got to Ross Dress for less to put that fly ass ecko sweatshirt for 30.00 on layway you have what? 30 days to get it out that means that you have to pay 1 dollar a day, 7 a week but since you be balling out of control with that big ass Wendy’s check you get you say you will do 10 a week, but when you get your check you’re short ,so you go and talk to the lady in customer service to explain your situation but everytime you get there she’s on break or at lunch so you can’t discuss the siuation to get the 10 dollars lowered to 7 for 2 weeks so you have paid 20.00 instead the 14.00 you could have if you had talked to the lady in customer service, so you sue for the 6.00 you would have saved if she would have had her fat ass at the customer service desk. Get it
i sold my hotel for one gigillion dollars yo. i get zee money..
The cryingasses here jumping to the defense of Jay Z give another reason to laugh at unschooled niggas who think rappers speak the truth.
Since y’all think studying Economics 1 at college gives you ‘knowledge’ (exception the bitch GWIZ whose been smoking cheap crack in the projects, the kind Jay Z used to sling when he was runnin around for real drug dealers and struggling to get by, which then magically became ‘drug dealer who shifted weight’ when in fact Dame and Biggs put in money, real drug dealer came up with the other cheddah that got Jay Z making his frist record), take it from somebody who knows about business – fronting is part of the rapper resume.
If you aint Bill Gates, Warren Buffet, and all those whites who have the real wealth and power. Jay Z’s just the water carrier for the big timers in the whole Nets shit – that’s why he’s there, they need a Black man to do their dirty work when they throw out the Black people from the area they want to ‘develop’.
Fools don’t understand – you aint owning anything til you’ve paid for it. A mortgage means shit until it’s paid off. Jay Z rents most of ‘his properties’ and I’m sure you didn’t see that there’s a lien that’s been put on one of them. He aint got the cash flow because he aint worthy a multi millionaire’s real worth outside of paper statements. You don’t own property til you own it – it’s paid off. Jay Z has paid off shit.
Any cashflow that Jay Z had went on fronting, the parties, the jewellery, hiring of yachts, hiring of planes, paying off niggas who know shit about his private sex life (forget about the Beyonce bullshit, when you aint living with your woman most of the time that’s a clue), paying niggas for protection, buying off niggas he knew as ‘security’ etc.
All the shit like Diddy who couldn’t even pay for the gold crown his son wore at his birthday party but had to hire it. It’s mostly illusion and when you aint got the liquidity then you’re going to be selling your investments. The Global situation has a lot of the real wealthy fucked so these rappers are going to be fucked right in their pretend rich asses.
The 40 40 clubs aint making much money. Jay Z aint ‘smart’ – he’s another dumbass who thinks if he keep saying he’s this and that he’ll be it. Reality whups your ass if you play that game too long. He’s renting most of his ‘properties’ and the mortgages on the ones he’s trying to buy are bleeding him which is why he cries like a bitch in lawsuits – he doesn’t want to pay back money for failed business ventures. Typical ignorant rapper attitude.
What up homie I see you back on here talking about what another man has in the bank. You sound really angry about Jay-Z. I know you have more to offer to the world than just talking about this man.
Well if you really understood how wealthy people operate, you’d understand that wealthy people would much rather use LEVERAGE than own straight out.. You get a higher rate of return that way then buying an asset out… It makes no financial sense to own those properties straight out when you can use financing.. Wealthy people understand that using LEVERAGE, that is OTHER PEOPLE MONEY to acquire your assets keep your cash in your pockets so you can pursue more endeavors with your cash… You tried to sound smart like you understood something but obviously not.
What you recited was middle class thinking not wealthy thinking.. They rather have their cash working for them then tied up.. Why buy an asset full out when you can acquire it for a fraction and CONTROL it.. The object of the game is control not ownership.. They rather CONTROL an asset not own it! Thats what wealthy people understand and non wealthy people dont.. Thats I jewel I just dropped that you might not get till you rub shoulders with some wealthy people.
you sound like, more then just the average person. Someone who knows quite a bit about investing i would love to learn a thing or two from you
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