New York state buys share of Jay Zs Roc-A-Fella Records to make deadbeat co-founder Damon Dash good on back taxes
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.
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