Jay-Z sold his stake in the Brookyln Nets so he could start a sports marketing agency. Tired of just partying with top athletes from the booths of his 40/40 club, Jay wanted to represent these guys, to make money off their friendship in ways that only he could. According to a New York look at his business exploits and a link with Pepsi, we already know he's maximizing his own profit margins.
New York's Andrew Rice did a sprawling examination of Jay-Z's business ventures, from the block to the boardroom, from his time as a young hustler in the Marcy projects to running Roc Nation Sports, the sports agency he launched in April with CAA and "Worldwide" Wesley Morris (LeBron's former handler) by stealing Robinson Cano from superagent Scott Boras. He's spent the last few months developing Roc Nation Sports into one of the hottest players in sports, signing New York Jets quarterback Geno Smith, New York Giants receiver Victor Cruz, and the crown jewel: NBA superstar Kevin Durant.
Jay's company will be in charge of marketing these mega-athletes from now on, but they won't be reaping major profits from mega-contracts. Money comes from marketing deals, as Jay demonstrated with his recent Samsung deal. "Fees for playing contracts are set fairly modestly: usually between 3 and 5 percent. The cut from marketing deals is considerably higher, and that will be where Carter concentrates his efforts," Rice explains. And if that's true, if the marketing deals are where Jay is making his cash in this arrangement, then he's already seeing green from his first client. The New York Post reported Cano signed a multi-million dollar deal with Pepsi that'll debut during the All-Star game on Tuesday. He's already making money for himself while putting his clients front and center.