There may be a leak at Def Jam that has nothing to do with the upcoming schedule of new music. An unnamed source tells George Rush and Joanna Rush Molloy of the New York Daily News that negotiations between Jay-Z and Universal Music Group’s Doug Morris have turned sour.
“He wanted big, big money that was way out of sync with the realities of today’s music business,” the source says. In 2005 Rolling Stone reported that Def Jam pays him between $8 million and $10 million annually to serve as president. Since taking the position in January of 2005 Jay-Z has helped break artists such as Rihanna, Ne-Yo and Young Jeezy while established artists such as Nas, The Roots and Jadakiss have also joined the label. Various rumors ranging from Jay joining Beyonce to form a digital label with the Apple Corporation, to him teaming up with Lyor Cohen at Warner Music Group or Rick Rubin at Columbia have circulated since it was reported that Jay-Z’s original contract is up at the end of the year.
“People have lost count of how many times he’s come out of retirement,” the source continued. “Everybody knows he’s not around the office much. Everybody at Universal loves him, but they can’t justify paying him the money he wants when so many people have been laid off.”
The Daily News and other outlets ran similar stories earlier this year, prior to the commercial success of Kanye West’sGraduation and Jay-Z’s own American Gangster album. While Jay-Z has yet to address the rumors, Antonio “L.A.” Reid, Chairman of Def Jam, shot down such rumors in March.
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“He’s so important to our company, there’s not much we wouldn’t do to keep him here, money being the least of them,” Reid said. “Everything he does is a complement to our business. I hope to work with him for many, many years. He’s magical. I need him.” Both sides are expected to resume negotiations when Jay returns from celebrating his 38th birthday in Paris, France.
