Jay-Z officially announced the sale of his 40/40 Club located at the Palazzo Casino in Las Vegas for an undisclosed sum. The 24,000 square foot sports bar will no longer operate under the 40/40 brand, and all association with Jay-Z and the club will be terminated as well.
“The sale is a great business decision, we are delighted. We look forward to expanding the brand even further to Chicago and Tokyo ,” Jay-Z said in a statement released yesterday.
While Jay-Z and his business partners will open more 40/40 sports bars in Chicago, Tokyo and Macau, the Palazzo 40/40 Club was mired with issues and financial troubles from the start. It almost failed to open for its New Years opening celebration due to failed health code inspections and there were numerous public complaints by employees of unfair treatment and termination. This included the over-hiring of staff once management realized how slow business actually was getting.
While the official press release spins the sale of the 40/40 Club as a good thing for Jay-Z, numerous business publications reveal that the sale was a necessity due to heavy financial losses that the Palazzo and Jay were both taking. The reality is that the Palazzo Las Vegas bought out the lease from the 40/40 so that they could finally turn a profit on the space and turn it into a restaurant and race and sports book facility.
Nice analysis, Yeti. I was surprised to see that most Hip-Hop outlets basically reprinted the press release without a critical eye. I wasn’t surprised, but was disappointed nonetheless, that most of the comments following any such regurgitation of the release were echoes of “get that money, Jigga”, “Jay is the greatest businessman of our time”, “Hov’s gonna see a billion before the decade ends” and whatnot.
I am awed by the successes that Jay has had, and I take no pleasure at all in seeing the Vegas 40/40 not work out. I am, however, happy to see that WooHa can l;ook through the spin and provide thoughtful commentary on the business of Hip-Hop.
Hey that’s the breaks. You can win em all. I still think Jay is the most savy business man out there.
The problem was that at the 40/40 club there was ESPN on the screen, but ESPN plays World Poker Tour. You can’t do that in Vegas. They play have real poker for your to play.
Jay has money so people approach him with ideals for him to invest. But what i would like to see is the detail to which he is involved (not just a partner), can he build a successful bus from the ground up, what type of creative ideals does he bring to the table (revenue flow) not just picking out paint colors or pictures.
I dont think you can call Jay-Z even the most SAAVY Business man. He was used as a pawn(investor) to draw people to the spot. Everything is spun to make it seem like all business’s are all Jay. Does he even know all aspects of his business b/c that is required.
Common sense should tell you that he doesnt have enough money to outright by the Nets by hiself plus with his lack of time and experience i seriouly doubt the he could run that organization without a full time commitment.
Jay is in the position that if you put his name on it, 80% of the time it should be a success.
same with 50 cent……….they take a credit thats misleading! there investors not businessmen, anybody with alot of money can do the same! all the poor people made jayz rich! suckers! I never bought nothing of his brand, he is the devil………this video so youtube removes it!
http://vigilantcitizen.com/?p=1948
@ B Easy – Agree with you on certain things. That cuz of his name and popularity, people just come to him with these opportunities and he doesn’t necessarily seek them out. BUT a good businessman would have control of his team and know the important things.
Its like 50 – all the bidness mags focus on his entourage of buisness folk that take care of his deals. But you also hear how close he is and how he approves everything. The downfall is when these artists are too “busy” to make financial decisions and have someone make them for them. Or the opposite when they make the decisions on their own w/o consulting experts
Good Business
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yall did hear them state sold in order to STILL turn a profit..
business venture overall failed.. but he still made cake off it
The 40/40 club can’t even pay their bills. We provided 2 strippers for an event at their Las Vegas club in July 2008 and have never been paid. We were suppose to recieve a check from the New York office which never came. During the first few weeks they said it was on the way. Now they are just avoiding our calls. I would not recommend doing business with them!
The 40/40 club can’t even pay their bills. We provided 2 strippers for an event at their Las Vegas club in July 2008 and have never been paid. We were suppose to recieve a check from the New York office which never came. During the first few weeks they said it was on the way. Now they are just avoiding our calls. I would not recommend doing business with them!
1-800-734-8386
http://www.SinCityStrippers.com
It's just sad to hear that they will no longer operate..
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