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Zack OMalley Greenburg - Empire State of Mind: How Jay-Z Went from Street Corner to Corner Office

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Zack OMalley Greenburg Empire State of Mind: How Jay-Z Went from Street Corner to Corner Office

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Im not a businessman-Im a business, man. --Jay-Z Some people think Jay-Z is just another rapper. Others see him as just another celebrity/mega-star. The reality is, no matter what you think Jay-Z is, he first and foremost a business. And as much as Martha Stewart or Oprah, he has turned himself into a lifestyle. You can wake up to the local radio station playing Jay-Zs latest hit, spritz yourself with his 9IX cologne, slip on a pair of his Rocawear jeans, lace up your Reebok S. Carter sneakers, catch a Nets basketball game in the afternoon, and grab dinner at The Spotted Pig before heading to an evening performance of the Jay-Z-backed Broadway musical Fela! and a nightcap at his 40/40 Club. Hell profit at every turn of your day. But despite Jay-Zs success, there are still many Americans whose impressions of him are foggy, outdated, or downright incorrect. Surprisingly to many, he honed his business philosophy not at a fancy B school, but on the streets of Brooklyn, New York and beyond as a drug dealer in the 1980s. Empire State of Mind tells the story behind Jay-Zs rise to the top as told by the people who lived it with him- from classmates at Brooklyns George Westinghouse High School; to the childhood friend who got him into the drug trade; to the DJ who convinced him to stop dealing and focus on music. This book explains just how Jay-Z propelled himself from the bleak streets of Brooklyn to the heights of the business world. Zack OMalley Greenburg draws on his one-on-one interviews with hip-hop luminaries such as DJ Clark Kent, Questlove of The Roots, Damon Dash, Fred Fab 5 Freddy Brathwaite, MC Serch; NBA stars Jamal Crawford and Sebastian Telfair; and recording industry executives including Craig Kallman, CEO of Atlantic Records. He also includes new information on Jay-Zs various business dealings, such as: * The feature movie about Jay-Z and his first basketball team that was filmed by Fab 5 Freddy in 2003 but never released. * The Jay-Z branded Jeep that was scrapped just before going into production. * The real story behind his association with Armand de Brignac champagne. * The financial ramifications of his marriage to Beyonce. Jay-Zs tale is compelling not just because of his celebrity, but because it embodies the rags-to-riches American dream and is a model for any entrepreneur looking to build a commercial empire.

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Table of Contents PORTFOLIO PENGUIN Published by the Penguin Group - photo 1

Table of Contents

PORTFOLIO PENGUIN Published by the Penguin Group Penguin Group USA - photo 2

PORTFOLIO / PENGUIN

Published by the Penguin Group

Penguin Group (USA) Inc., 375 Hudson Street, New York, New York 10014, U.S.A. Penguin Group (Canada), 90 Eglinton Avenue East, Suite 700, Toronto, Ontario, Canada M4P 2Y3(a division of Pearson Penguin Canada Inc.) Penguin Books Ltd, 80 Strand, London WC2R 0RL, England Penguin Ireland, 25 St. Stephens Green, Dublin 2, Ireland (a division of Penguin Books Ltd) Penguin Books Australia Ltd, 250 Camberwell Road, Camberwell, Victoria 3124, Australia (a division of Pearson Australia Group Pty Ltd) Penguin Books India Pvt Ltd, 11 Community Centre, Panchsheel Park, New Delhi - 110 017, India Penguin Group (NZ), 67 Apollo Drive, Rosedale, North Shore 0632, New Zealand (a division of Pearson New Zealand Ltd) Penguin Books (South Africa) (Pty) Ltd, 24 Sturdee Avenue, Rosebank, Johannesburg 2196, South Africa

Penguin Books Ltd, Registered Offices:
80 Strand, London WC2R 0RL, England

First published in 2011 by Portfolio / Penguin,
a member of Penguin Group (USA) Inc.

Copyright Zack OMalley Greenburg, 2011 All rights reserved

LIBRARY OF CONGRESS CATALOGING IN PUBLICATION DATA

Greenburg, Zack OMalley.

Empire state of mind : how Jay-Z went from street corner to corner office / Zack OMalley Greenburg. p. cm.

Includes bibliographical references and index.

eISBN : 978-1-101-47607-9

1. Jay-Z, 1969- 2. Rap musiciansUnited StatesBiography. I. Title.

ML420.J29.G74 2011
782.421649092dc22
[B] 2010035334

Without limiting the rights under copyright reserved above, no part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form or by any means (electronic, mechanical, photocopying, recording or otherwise), without the prior written permission of both the copyright owner and the above publisher of this book.

The scanning, uploading, and distribution of this book via the Internet or via any other means without the permission of the publisher is illegal and punishable by law. Please purchase only authorized electronic editions and do not participate in or encourage electronic piracy of copyrightable materials. Your support of the authors rights is appreciated.

http://us.penguingroup.com

For my parentsall three of themand for Danielle

Introduction

A t 12:10 a.m. on October 4, 1969, Brooklyns last Myrtle Avenue elevated train rumbled off into the night. Two months later Shawn Corey Carterbetter known as Jay-Zentered the world, making his first home in the nearby Marcy housing projects. The sprawling complex of drab six-story brick buildings today sits five blocks from the Myrtle Avenue lines ghostly remains, a block-long hollow structure that nobody ever bothered to knock down. During Jay-Zs formative years, the rest of Bedford-Stuyvesant was similarly neglected by the authorities; as the drug trade flourished in the 1980s, lessons of supply and demand were never farther than the nearest street corner. Even now, hallmarks of Marcys past remain: the padlocked metal gates guarding each parking space, the apartment numbers stenciled in white paint beneath street-facing windows to help police catch escaping perpetrators, and, of course, the rusted railway skeleton over Myrtle Avenue, just steps from the platform where the J and Z subways now roll into a modern train station.

The following pages will explain just how Jay-Z propelled himself from the bleak streets of Brooklyn to the heights of the business world. In making that journey, hes gone from peddling cocaine to running multimillion-dollar companies, with worldwide stops at sold-out concerts along the way. Once Jay-Z got going, it took him less than ten years to complete that voyage, thanks to innate talents honed through hustling. His story is the American dream in its purest form, a model for any entrepreneur looking to build a commercial empire.

Jay-Z wouldnt be where he is today were it not for his remarkable abilities as a rhymester and wordsmith. Most hip-hop buffs place him in raps pantheon, alongside the likes of Rakim, KRS-One, Tupac Shakur, and the Notorious B.I.G. Jay-Zs first album, Reasonable Doubt , packs a lifes worth of lyrics into a single disc, backed by beats thick with soul and jazz. Though his first album is still considered one of hip-hops greatest, he garnered criticism for heading in a pop-oriented direction in subsequent efforts. Jay-Z readily admits this was all part of his plan to sell more records. I dumbed down for my audience, doubled my dollars, he says in one song. They criticize me for it, yet they all yell, Holla.

While some of Jay-Zs catchier choruses have drawn the scorn of purists, radio hits like Hard Knock Life (Ghetto Anthem) were instrumental in broadening hip-hops appeal. Jay-Z has helped a cultural movement born amid the ashes of the South Bronx flourish in the fertile fields of the American mainstream. With his aid, hip-hop has gone all the way to the White HouseBarack Obama referenced Jay-Zs Dirt Off Your Shoulder at a press conference in early 2008 and reportedly called Jay-Z early in his first presidential campaign to ask whats going on in America.

This books focus is not music, but business, a field in which Jay-Zs prowess rivals his considerable musical talents. He pulled in $63 million in 2010, more than twice as much as the next highest paid hip-hop impresario, Sean Diddy Combs.

One of the main reasons for this success is Jay-Zs ability to build and leverage his personal brand. As much as Martha Stewart or Oprah, he has turned himself into a lifestyle. You can wake up to the local radio station playing Jay-Zs latest hit, spritz yourself with his 9IX cologne, slip on a pair of his Rocawear jeans, lace up your Reebok S. Carter sneakers, catch a Nets basketball game in the afternoon, and grab dinner at The Spotted Pig (Jay-Z owns a stake in both) before heading to an evening performance of the Jay-Z-backed Broadway musical Fela! and a nightcap at his 40/40 Club. But leave the gold jewelry at home, ditch the baggy shorts and athletic jersey, and dont even think about drinking Cristal: pop-culture arbiter Jay-Z has pronounced all of these items verboten. Instead, consider wearing a platinum Audemars Piguet watch along with a crisp pair of jeans and a dress shirt, preferably by Rocawear, while drinking Armand de Brignac Ace of Spades champagne. Hell profit at every step. As he says in one of his songs, Im not a businessmanIm a business, man.

Jay-Z has a nose for money. It drew him away from music and toward the drug trade as a teenager, then back to music as a young adult. In the middle of his career, it took him from the studio to the boardroom, then back to the studio. Its led him to a little bit of both in recent years, creating marketing synergies at every turn. He has a unique ability to set trends and profit from them, and he has milked many of his ventures for astronomical profits. Jay-Z pulled in $204 million for selling his Rocawear clothing line in 2007; the following year, he secured a ten-year, $150-million deal with concert promoter Live Nation at the top of the market. By my estimateinformed by three years of evaluating the fortunes of billionaires and writing about the business of hip-hop for Forbes Jay-Zs personal fortune stands at nearly half a billion dollars. With a little luck, hell make it to ten figures before his social security checks start to arrive.

Despite Jay-Zs success, there are still many Americans whose impressions of him are foggy, outdated, or downright incorrect. Over the nine months I spent working on this book, I was astonished at the number of peoplemostly middle-aged and whitewho, with varying degrees of seriousness, advised me to watch my back while writing about a rapper. Perhaps these were simply misguided quips, though I fear that more often than not, they were symptoms of the prejudice that still infects our society. This is not a book about race, but in researching Empire State of Mind , I was reminded that Jay-Zs rise is all the more remarkable because of the biases hes been able to overcome.

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