According to the New York Post, the recession took a toll on more than one business venture by rap mogul Jay-Z in 2009/2010. First, two Manhattan hotel development projects, one in Chelsea and the other in the Meatpacking District, fizzled out this year, costing Jay-Z and a company he controls about $50 million.
His almost 7-year-old 40/40 Club franchise, while still successful overall, has taken a few lumps as the 80,000-square-foot Las Vegas edition, with its 80-plus plasma TVs, was closed in late 2008 after just eight months in business — a victim of low attendance. Plus, a Chicago club, first expected to debut in 2009, is still not open.
In March, he walked away from a reported $2 million investment in the Aqueduct Entertainment Group, an entity selected to develop a “racino” at Aqueduct Racetrack. He bailed after federal and state authorities started to investigate potential corruption in the selection process.
Plus, there is his 1.5 percent stake in the New Jersey Nets which has performed as poorly as the team since he bought it in 2004. Jay-Z was among the group that purchased the team for $300 million — but it’s now worth $269 million, a drop of 10 percent.
Despite the financial setbacks, the rap mogul still maintains a $1 billion empire, and his business remains strong in core music and apparel retail sales, which will likely bring in 10 figures this year. His Rocawear brand, for example, has been a big seller this spring, the paper notes.
Information from Eurweb.com and The New York Post contributed to this report.
