Jay-Z has had more than his share of success stories in the music business. He has also played an important part in a number of different successful business ventures outside of Hip-Hop. His Rocawear clothing line was a major urban fashion trend in the early years of Roc-A-Fella Records, which was sold in 2007 for a price tag of 204 million dollars. Furthermore, Jigga was the former CEO of Def Jam Recordings, responsible for signing rap superstars Rick Ross and Young Jeezy, co-owner of the 40/40 club, co-brand director for Budweiser Select, and investor in Carol’s Daughter beauty products.
With all these ventures under his belt, the one business that we do know Jay-Z for is the Brooklyn Nets… sporting the Nets fitted everywhere he goes and even dropping the Brooklyn Nets name into his song verses. But with the claim Jay has been making about being part owner of the Brooklyn Nets it seems like his team spirit is not recognized by the Russian billionaire Mikhail Dmitrievitch Prokhorov. In a recent report it was stated that Jay-Z shares in the Brooklyn Nets had been diluted from one third to one fifteenth of one percent of the team. There were no reports on why his shares were diluted, which could be any number of reasons.
It seems like Jay-Z is more of the mascot for the Brooklyn Nets than he is owner. This dilution can shift fundamental positions of the stock such as ownership percentage, voting control, earnings per share or the value of individual shares. A broader definition specifies dilution as any event that reduces an investor's stock price below the initial purchase price. With many different forms of stock dilution it is safe to say that it is too early to know if this was a bully decision by the Russian Mikhail Dmitrievitch Prokhorov or if it was a calculated move by Jay-Z, which could pay off in the long run. With all the good business Jay-Z has done over his lifetime it is hard to believe that he has lost stock in his hometown team.
The famous saying “All good things must come to an end” may be the new chapter for Jay-Z or he never really had any interest in owning a basketball team and the new found love he has for the Brooklyn Nets was nothing more than an advertising move by the new owner.
Making Jay-Z the face of the Brooklyn Nets and rewarding the Brooklyn native by giving him stock in the team, which allowed Jay to be a part of bringing in good business to his hometown, it seems like he still has 99 problems and the Brooklyn Nets is one. But with all that being said it still doesn’t change the fact that both Jay-Z and Mikhail Prokhorov are on the Billboard for the Brooklyn Nets near Madison Square Garden.
- By Mike Scientific