News: Jay Z On Verge Of Banking A Milli Following Brooklyn Nets Break-Up
Wednesday, Sep 18, 2013 11:53PM
Rap mogul Jay Z is reportedly going to receive over a million dollars for his stake in the Brooklyn Nets and its one-year-old Barclays Center.
With $1.5 million guaranteed, Jigga could earn even more chunks of money due to the Barclays popularity over the past 12 months.
Jay-Z owns slightly less than one-fifth of one percent of the Barclay Center. New York City recently appraised the Barclays Center-based on its potential income-to be worth $741 million. That works out to about $1.5 million for Jay-Z's stake. But he could get even more, given the huge success of the arena. Through the first half of this year the Barclays Center was the top-grossing venue in America. And Forest City Enterprises, which owns 55% of the arena through its Nets Sports and Entertainment subsidiary, booked net operating income of $10.8 million for the arena through the first six months of 2013. (Forbes)
Details of an unexpected power move to sell his ownership to head coach Jason Kidd surfaced online early this month.
Jay Z is selling his minority ownership in the Brookyn Nets to coach Jason Kidd, sources exclusively tell Page Six. We're told Kidd will take over Jay's .067 percent (1/15th of a percent) stake in the team for about $500,000. The move comes as Jay was forced to sell his Nets shares over a conflict of interest after he started a sports agency, Roc Nation, signing clients including Yankee Robinson Cano and Oklahoma City star Kevin Durant. A source told us, "Other owners want to give Jason a part ownership of the team, and urged Jay to sell his shares to him." (NY Post)
Coincidentally, Young Hov's interest in investing in the team came from Kidd a decade ago.
Amazingly, Jay was introduced to the team in 2003 by Drew Katz, the son of one of the Nets' principal owners, after Kidd, then the Nets' marquee point guard, suggested the music mogul buy the team. According to reports, Jay helped design the team logos and choose the Nets' stark black-and-white color scheme, and personally appealed to National Basketball Association officials to drop their objections to it. The Times reported Jay's influence stretched so far, he courted top players to join the team and even counseled execs on music to play during games. (New York Post)
Young Hov issued an official statement on his Life + Times website to break the news of his departure from the Nets earlier this year.
"Being a member of the Nets organization surpassed some of my greatest ambitions. It was never about an investment; it was about the NETS and Brooklyn. My job as an owner is over but as a fan it has just begun. I'm a Brooklyn Net forever. It's been an honor to work with Mikhail Prokhorov, Dmitry Razumov, Christophe Charlier, ONEXIM Sports and Entertainment, Brett Yormark and all the wonderful people involved in making the Nets first class. My sincerest thanks goes to Bruce Ratner, who first introduced the idea of moving the Nets to Brooklyn. A thank you and deepest appreciation goes to the fans. You are the lifeblood of any team." (Life + Times)
The rap mogul also confirmed NBA restrictions forced him to part ways with the team.
"The Nets have made their mark on the NBA and as they enter a new era, Roc Nation does as well; as we embark on Roc Nation Sports. Our newest endeavor is committed to building the brands of professional athletes as we have done for some of today's top music artists. For Roc Nation Sports to function at its full potential, NBA rules stipulate that I relinquish my ownership in the Brooklyn Nets. It was a tough decision but as I stated earlier, it's not about ownership. Congratulations to The Nets on a great season and making the playoffs! I will always be a Brooklyn Net." (Life + Times)