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New York has “99 Problems” — literally.
The state government bought a one-third share of Jay Z’s Roc-A-Fella Records at an auction Thursday in hopes of recouping $8.7 million that the label’s embattled co-founder, Damon Dash, owes in back taxes.
An anonymous Albany rep entered the winning $1 million bid at the federal auction in Manhattan in hopes of flipping the 33.3% stake in the famed hip hop label — which produced hits such as “Hard Knock Life” and “99 Problems”— for enough cash to make up for Dash’s huge tax debt.
The state made a creditors bid on the legendary rap company’s shares, meaning they didn’t have to front the $1 million, and can now resell the portion of the company at no risk.
It is not clear when or how the state will sell the label rights to pay off Dash’s tax debts.
Two other anonymous bidders were in the running — bidding $250,000 and $223,000, respectively — for the portion of the firm, which also founded the Rocawear clothing line.
New York City has also demanded more than $193,000 in unpaid child support from the record executive in recent months, according to billboard.com, and will be paid from the bid money.
“The auction is over but the work is not complete,” said attorney Chris Brown, who represents two plaintiffs to whom Dash allegedly owes money.
“Mr. Dash’s legacy is now New York State property. I will work with New York State and New York City as the next phase of ownership of the shares.”
Dash was previously listed the 27th most tax delinquent Empire State resident, according to state records.
The auction was delayed earlier this year after Jay-Z intervened in the matter in August and tried to claim ownership of his first album “Reasonable Doubt,” which would be one of the company’s main assets. He said that the full ownership would revert to him in 2031, giving anyone who bought it only six years of control.
But the city of New York made a filing saying that was not true.
“JAY-Z has issued widely publicized statements warning potential bidders that copyright ownership will revert back to him in 2031,” the city wrote in the letter to the court that was obtained by All Hip-Hop.
“Those statements are false and extremely damaging to the City’s interests in ensuring that the auction will generate sufficient funds to satisfy all existing child support arrearages and secure future child support payments.”
Natraj Bhushan, a lawyer for Dash, said he was shocked Jay-Z, whose real name is Shawn Carter, didn’t make an appearance at the auction, which was held at the Ink Hotel 48th Street in Hells Kitchen and overseen by United States Marshal for the Southern District of New York Ralph Sozio.
“I think it’s surprising not to see Mr. Carter here bidding on a one-third interest. Now he has the government involved in his affairs,” said Bhushan, who sidestepped other questions about the bid.
English (US)