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As the wealthiest rapper in the industry, Jay-Z is no stranger to investing. The billionaire recently put some of his hard-earned money into a lifestyle clothing company that has the makings of becoming a multibillion-dollar brand.
Professional athletes such as LeBron James and Kevin Hart, along with some top names in the entertainment industry, saw the potential. And they’ve decided to get in on the action, becoming part owners in the rapidly growing business.
What Jay-Z’s new brand is about
Founded in 1904 in Philadelphia, Mitchell & Ness got its start in sports-related clothing by making football and baseball uniforms for local teams. In 1983, the popular brand transitioned to manufacturing vintage jerseys.
Today, Mitchell & Ness has license agreements to sell apparel collections, casual wear, and accessories for the MLB, NFL, and NBA professional sporting leagues. The company also specializes in handcrafted sports equipment. And it sells throwback jerseys for all-time greats such as Michael Jordan, Larry Bird, and many more, ranging in price between $100 and $400 each.
Earlier this year, Michael Rubin, CEO of the sports apparel giant Fanatics and former owner of the NBA Philadelphia 76ers, purchased a 75% stake in Mitchell & Ness. The deal was valued at $250 million. According to the Philadelphia Sports Journal, the remaining 25% went to a celebrity contingency led by Jay-Z. It includes rapper Meek Mill, TikTok stars the D’Amelio family, rapper Lil Baby, and sports businessman Maverick Carter.
According to Complex, at the time, Jay-Z said, “Fashion is cyclical, but classics are forever.” As an early adopter of the brand and instrumental in putting the celebrity group together, the “99 Problems” performer explained that he was proud to be “introducing the authenticity and quality of the Mitchell & Ness brand to a new generation.”
The professional athletes and celebrities who just joined Jay-Z’s investment group
Earlier this week, CNBC reported Mitchell & Ness has already grown by 30% this year. It is currently valued at $350 billion. With plans for rapid expansion, a new group of celebrities recently joined the investment team set up by Jay-Z. Rubin announced “the new ownership group will include LeBron James, Kevin Durant, Chris Paul, CJ McCollum, Devin Booker, James Harden, Joel Embiid, Odell Beckham Jr., Kevin Hart, Rich Paul, Rich Kleiman, Scooter Braun and Steve Stoute.”
The Fanatics CEO stated, “We’re really excited to get people that are making culture to be owners and band together with us on this.” The celebrities are excited about the opportunity. They intend to use their status and influence to make the company “the most diverse and culturally relevant consumer brand.”
Rubin claims, “Athletes, celebrities and artists are sick of just getting checks, they want to make money from equity. They want to be partners in these businesses.”
Jay-Z’s net worth and other investments
Jay-Z tops the list of wealthiest rappers, with Celebrity Net Worth putting his estimated net worth at $1.3 billion. The “Hard Knock Life” singer’s music catalog has an estimated value of $100 million. As he owns the publishing rights and masters, he makes approximately $5 million per year in revenue from royalties.
However, a huge chunk of Jay-Z’s fortune has nothing to do with music. The iconic producer makes most of his money from the alcohol industry, real estate, an extensive art collection, and an apparel line.
According to Parade, Armand de Brignac, the rapper’s signature champagne brand, has an estimated worth of $310 million. His cognac brand D’Usse is valued at $100 million. His Roc Nation entertainment and sport management agency is worth $75 million. And Jay-Z has a $70 million stake in Uber, plus a broad range of other lucrative business deals.
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