Why Jay-Z May Be Having “Liquidity Issues”: A Look Back

Posted on February 5th, 2010 - By Bossip Staff

Categories: Jay-Z, News, When The Checks Stop Coming In

Yesterday, BOSSIP reported that Camel defaulted on debt payments on a $52 million dollar loan and then sued the lender for harassing him and wanting their money back. Well, BOSSIP went digging.

Last year, Camel’s attorney Michael DiMattia sued him for not paying his legal bills. The lawyer was working on behalf of Jay-Z in a federal lawsuit that claimed 400 workers his NYC 40/40 club were not paid minimum wage or overtime.

Back in 2007 before the economic collapse, Camel bragged in “30 Something” that “I got the right stock, I got stockbrokers that’s movin’ it like white tops”.

After this track dropped, the stock market fell by more than 50% and it’s very likely the investment portfolio Jay-Z was bragging about took a big hit and he sold off his investments near the bottom, like many inexperienced investors who didn’t want to lose anymore stacks.

Even with the “seemingly” lucrative $150 million LiveNation deal, with the collapse of music sales, fashion sales, some investments he had in the stock market before it imploded, and considering his “private plane with a bodyguard lifestyle”, it’s very likely Jay-Z is still very rich but is not “liquid” (have access to a lot of his net worth). This is a possible reason why he had trouble making payments on the $52 million loan and why he has to crank out hip-hop albums once every 2 years at 40+.

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  • http://www.twitter.com/egOriginal Kofi

    Don’t forget the money he made moving weight before the rap game… lmao . Bet it comes in handy now . Put that on FORBES!

  • Rihanna’s sharp n witchy fingernails took the oath-Mariah’sconcertlastnightwasGREAT!

    he is so gross!

  • BEYONCE FANS HAVE MENTAL ISSUES

    I TOLD YALL SO JAYZ DOES DRUGS

    AND NOW HE’S TRYIN TO GET INTO BEYONCE’S POCKETS

  • kreative

    damn jay u will bounce back u always do…….

  • LouLou

    God sees everything……

  • BEYONCE FANS HAVE MENTAL ISSUES

    I BAT BEYONCE DIDNT SEE THIS COMING…

    3 MILLION DOLLAR VACATIONS EVERY YEAR FOR HIM AND BEYONCE

    2 MILLION DOLLARS BIRTHDAY PARTYS

    10 MILLION HE SPENT ON THEIR WEDDING

    BEYONCE TALKIN ABOUT HOW SHE NEVER HAD TO BUY ANYTHING FOR HERSELF THAT’S WHY SHE STILL HAVE 80 MILLION IN THE BANK….GOLDIGGING AZZ HOE

    EVERYTHING YOU GOT I SPLIT THE BILL… YEAH RIGHT NOT IF YOUR HUSBAND’S GOING BROKE

    JAYZ NEEDS TO GET BEYONCE TO SPEND SOME OF THAT 80 MILLION IN HER BANK

  • BEYONCE FANS HAVE MENTAL ISSUES

    HE’S JUST TRYING TO GET BEYONCE TO PAY OFF HIS BILLS…AND I BAT SHE FALLS RIGHT FOR IT

    JAYZ ALWAYS TRYIN TO GET OVER ON PEOPLE THAT’S ONE REASON WHY A LOT OF RAPPERS DONT LIKE HIM TODAY

    DRUGS I TELL IT’S THE DRUGS

  • Voice of Reason

    52 mil is a lot of money to have as cash. Businessmen borrow, no matter how rich they are to manage the level of liquidity. Its sensible business. Whe you a re big and succesful you are a bigger target so I can understand some the hate I’m seeing from some not-so-successful individuals in here

  • gloxx

    WHAT EVER GOES UP….. MUST COME DONE… THOSE ARE THE RULES OF LIFE

  • jiangleia

    Valentine’s Day is approching
    Someone told me…
    W_e_a_l_t_h_y_R_o_m_a_n_c_e_S.C_o_m.. is where many highly successful people are in search of someone for a quality relationship in their life, the same as me:)

  • Freeze

    MAN THE HATE

  • buzy bee

    i’m not a jayz fan but gosh..yall some hatin azz m.f.’s up in this. Very jealous and joeing his jock. Get a life

  • Sarah

    BEYONCE NEEDS TO GET HER A WHITE MAN LIKE NAOMI CAMPBELL, KELLY ROWLAND AND JESSICA WHITE. BEYONCE GET YOURSELF ONE OF THOSE RUSSIAN BILLIONAIRES GIRL THEY WON’T HAVE YOU SHOWING YOUR COOCHIE AT 40 YEARS OLD LIKE HOW BLACK JAY Z WILL.

  • Nique

    He still has more than I do so…..

    NO COMMENT! LOL

  • http://myspace.com/itsjohnp john newton

    Cats praying on this dude downfall…everybody speculating on how much money he got…he’s been on the forbes list top3 the past 10 years for money being made, so if you really do the math and quit hating you might not really have a case to HATE…lol

  • I’m Just Me…Keeping It Real Since: 1983….71 Days!!!

    I am pretty sure he will be alright.

    I am with Nique…he got more than me on his worse day, so…

  • Whatever

    @ Kofi….you ain’t right! LOL LOL LOL.

  • lavegan

    Get them jews out of your pockets. They swindle people out of money. Look at Nicholas Cage, Jay Z and countless others over time.

  • J

    PEOPLE READ WITH UNDERSTANDING
    HE IS NOT BROKE HE HAS LIQUIDITY ISSUES

  • mena

    @ Sarah you sholl know what to say!!! Marriage= for better or for worse…then divorce!!!! Ask Tina. Bey aint as dumb as she look

  • jswang

    All the hate for a black man! Get out of here! Hov is doing fine financially. Its a lot of people a whole lot richer than Hov that the stockmarket took under.

  • darealwifey

    There is a phrase in business. It’s called, “OPM” or Other People’s Money. You NEVER use your own money for business purposes if you can avoid it. Rich people leverage other people’s cash. Not saying that JayZ isn’t having cash flow problems, but business issues are not necessarily indicative of personal ones.

  • http://Timeiscoffee.com TimeisCoffee

    I have liquidity issues too. My father sent me $2 million. The money is in Hong Kong and it will be on my account on monday!
    Can somebody lend me $2000 so i can pay my rent?
    lol!
    —————————–
    Jay Z : this is a real entrepreneurs issues, you need to take risk to make more money.
    —————————-
    Everybody wants to go to paradise no one wants to die!!!!

  • num1dominicano

    what people don’t know that it is cheaper to operate via debt than equity….however, if you can’t eventually pay back those debts you are screwed…and for fools in the industry, if your assets aren’t liquid, it’s like not having them at at all since everything they do is for show…you can’t wear stocks and bonds around your neck and wrists..

  • diane

    from my understanding he was just one of many investors and he stopped paying because no one else held up there end of the bargain….Just one of many investors not sole, I don’t reaaly care for Jay z like that with the blasphemous lyrics and all but this story is a little off

  • flawda

    Darryl Nururdin

    Way to school these fools, successful people don’t invest their money for the most part; they invest the banks money. It’s like the idiots who believed Michael Jackson was really broke.

  • Sweet DEE

    Dont hate on Jay-z and Bey. Just because they
    have money. Because if it was me I would spend
    it to. If you got it spend it. Do the dam thing
    Jay. It’s you world. I hope you got God in it.

  • SlimDigital

    You folks are the biggest haters. Jay still got more bread than all yall . . . combined lol. I aint on the man nutz but you gotta give bread respect. Funny how yall worshiped this dude for 10 summers straight and now that his cash match his raps its a problem. I guess yall rather hear a man fake like he got money in his raps.

  • kerry

    bahahahahahaha

  • real black is chocolate f’ck fake azz bullsh’t!!!! real nikka aka Gmen

    fugly!

  • kerry

    wtf is that yellow stuff on his face? let me guess…bleach cream.

  • num1dominicano

    kerry

    2/5/10, 10:31:am

    wtf is that yellow stuff on his face? let me guess…bleach cream.
    ———————-

    ahhh…sunlight…are you serious…??

  • Carmen

    He really looks like a Camel from the side profile…LOL

  • Carmen

    LOL @ Sarah comments… Beyonce is to ghetto to mess with a white man.

  • samech

    He’ll be fine. I don’t care…

  • cocoa49

    every Empire has it down fall….jigga, hov or Jay Z, what ever you want to call him, is no exception. these idiots need to stop bragging on their money.

  • La Mexican AKA Shamerika

    Jay-Z wants a baby from Bey sooooo bad to have that money on lock. Bey don’t want no kid cause probably she sees that Hov is going down hill with the bad business he doing. Plain and simple people. Jay-Z defaulted on a $52 milli loan but yet can spend millions on vacation, millions on jets and private places…$52 milli to him should be about $52k to us “normal” people and now can we defaul on that? JAY-Z DOING SOME THANGS and he gon’ get caught up, lose Bey and go into REHAB. So, GET ON AUTo-TUNE BUDDY. IT AINT DEAD AND MAY SAVE YOUR LIFE, YOUR MARRIAGE, YOUR FANS, AND YOUR MONEY!!

  • kerry

    @num1dominicano
    SUNLIGHT?! He is in a dark club. Does that look like sunlight? Sweet baby Jesus. Please erase your post.

  • http://copthat.com CLICK ME PLEASE!!

    you people are nuts.

  • BlackSuperior

    I didn’t beleive it before but now I do….I swear he looks just like that Joe Camel>>>I am sorry Jay. That was wrong Damn it.

  • thatbrutha

    SO WHAT IF HE HAS TO CRANK OUT and album every 2 years.
    rolling stones, and all these other WHITE BANDS DO IT.
    The WHO ARE PLAYING THE SUPER BOWL yet a brothas can’t stay in the music his people have created?
    THE STUPID THING is that nias, don’t get that they are hating on their own and trying to push their own out the door while the other groups stay making money.

  • LeoGlamVixen

    I can’t say ish…Hell, my rent due as we speak! LOL

  • LeoGlamVixen

    Why does the paparazzi insist on taking photos of him at horrible angles? Geesh

  • Miss All That!!

    Bey and Jay Z are too Rich and Perfect!!!! I want one of them to F**K up!!!!! I am tired of seeing Bey Bey all over the media!! Dam give someone else a chance.. Her bald headed sister Solange is taking DJ jobs from professional DJ’s trying to put food on the table for there family’s.. BEY please go somewhere and hide from us until we miss you!!

  • http://Bossip KERO

    AND YOU WONDER WHY HE CHOSE BEYONCE OVER RIHANNA, OR WE WONDER WHY BEYONCE SHAKING THAT A.S.S. SO HARD- TO KEEP THEIR HEADS ABOVE WATER. HOW ELSE IS SHE GOING TO CONTINUE TO FLY PRIVATE. ALL THEY MISERABLE A.S.S.E.S. BE LYING LIKE THE HAVE SO MUCH MONEY. IN THE NEXT FEW YEARS WE WILL SE WHO ENDS UP BANKRUPT ON CELEB FIT CLUB OR SURVIVOR. JUST LIKE TOM CRUISE BROKE A.S.S. THEY BE STUNTING AND LYING !

  • Manuel

    Im surpised…on how many haters are sitting on this blog…praying for another man’s downfall….sad

  • Linwood Rose

    These types of lawsuits happen all the time in business. It’s a strategic move and not an indication of liquidity and or financial state. Just because he has the money doesn’t mean he thinks he should pay it if he has cause not to.

  • pusceegalore

    Is that why he still tours?

  • monique

    Hopefully Beyonce has better investments on her side of the spectrum. If Damon Dash is any barometer of how is money is flowing, he is not too far behind. Do I think he’s broke-broke? Absolutely not. He can live off of interest alone for the rest of his life. He was probably netting around $100 million, versus the $500 million. So…not feeling too sympathetic. He just has to sell off some of his assets to cover that loan. But if anybody needs money, Jay-Z needs it. The broker he is, the drier Beyonce will get for him.

  • ba-donk-a-bonk

    Can you be in the Illuminati and broke at the same time?

    I dunno bout that broke stuff……..

  • jay

    No comment! I’m working for minimum wage, lol.

  • FattDoll

    Chris Brown and Dr. Murray and em did it!

  • IVB

    Look working in the investment banking financial sector ill lend some input on “said” article. Separating fact from fiction.

    The article didnt or shouldnt have stated that he defaulted on the loan by not making payments, the article stated that they pulled out of the deal and decided not to build the J Hotel. Therefore the loan once received will have to be paid back. From experience in this albeit on a somewhat smaller scale most investors bond their loan. Meaning they create a funding source to pay their obligation for the initial loan. Jay-Z did this as well, this is what they mean when its stated “the fund MATURED in August”. Jay-Z has not defaulted on that loan or any loan per that article. Be careful how you process news and information e.g. (Tea Party Express…the president is a radical socialist muslim that drinks tea with Farakhan and Ayers plotting to overthrow the government.)

    Jay-Z does or potential owe their binding agreement on guarantees. Meaning if you go and buy a car and take a loan then turn around and try to pay the car off the next week, you owe the interest or the payoff amount etc, unless it was agreed upon as a “principal only tender” or “same as cash offer” etc.

    So they are arguing over the amount he owes on top of the 52 million they borrowed and paid or borrowed and never used.

    Pay atention people, people write sometimes to slant your view of a person, dont fall for it.

  • moneymagnet

    Real ballers and powerplayers NEVER have to bluff or put their business in the streets simply for the fact that it’s not good business sense for your haters and people to know what you do….So in otherwords, Jigga needed to stop braging PERIOD!!!
    ——————————————————–
    Real Ballers don’t even like the Jay-Zs of the world. They move around silently and you would never know how much wealth they’ve acquired. There are MANY VERY wealthy, HIGHLY EDUCATED black people, but they’re smart enough to keep quiet. these idiot rappers make $1 million and think they’re home free. Real wealth is $500 million or more, not $1 million when 40 % has to go to the IRS, 10-15 percent to some shady agent, 1 percent to the phony entourage, and a few thousand to the groupies. Most of the wealthy blacks I know have either an MBA or a highly successful & experienced mentor.

  • PETE

    YALL STUPID THIS DUDE WORTH BOUT 500 MILLION. HE AINT PERFECT AND SUM DEALS GO BAD OR NOT AS EXPECTED SOMETIMES.. GROW UP!

  • prettyfaceAKA

    @moneymagnet I agree…time will tell…wait and see…

  • africanamericans are stupid

    YOU KEEP HATING ON EACH OTHER AN EXPECT THE WHITE MAN TO TREt you right. you guys are so stupid and ignorant. this guyis in the forefront of your culture opening barriers never seen, all you do is look to disgrace him cause he is rich. jeal;ousy and lack of schoolin has killed your hoods and left you ignorant the ones that are a lil educated still hate on each other cause education cannot trump DNA

  • africanamericans are stupid

    Gosh african Americans are the dumbest race i have ever encountered bet africans from africa and Haiti are a little different even though barbaric but better!!!!

  • NYC Gal

    Alot of these rappers just brag. They really don’t own anything. They have money but they are not wealthy. I always knew he didn’t have the money he said he had. Most of his money comes from Ri Ri’s cd.

  • NYC Gal

    Ever bet Jay-Z will be showing off with a new car or something like that. To show folks that he still got money. Please don’t be fool. He might be showing off a lease car!

  • http://www.naylandhouse.com www.naylandhouse.com

    Jay-z will be okay

  • rico 9

    wrong- get the story right… there is alot more going on with the partners in the hotel not coming through with their side of the deal.

  • http://www.bossip.com N.Y. till the day I die!!!

    Every big rapper coming out of N.Y.C is being hate on! A couple of years ago all of you a$$ wipes was on their dikk!!! Stop being so obvious with that hate! But, Jay dug his own hole by turning his back on his real ni99as!!!

  • moneymagnet

    Tyler Hicks and a bunch of gurus have been teaching the OPM model for years, yada, yada, yada. My point is this: you DO NOT go out and pay $66 million for a plot of land-PERIOD! Unless that land has oil on it, to be $66 million in the HOE before anything is built is pure foolishness, I DON’T CARE whose money it is, established businesses like Tavern on the Green can’t even bring in the money they need to stay open, and is currently switching hands. PLEASE TELL me why he would waste $100 million in NYC at this time. He should’ve done this in a place like Catalina Island, but not build a luxury hotel, donald Trump has that market LOCKED, him and a few other people, PLUS NY is really not the hotspot that it was, it’s too darned crowded, the noise is UNBELIEVABLE, and the RATS-OMG! He should’ve taken this project elsewhere where he could do it with a lot less money, for that amount of money, he’s going to have Gucci Stores & all the top jewelry stores, but most of those people aren’t selling like they used to, did they even do a business plan for this venture? For $20,000, I would’ve advised him against this plan. A global recession and you want to build a luxury hotel in a market with an 80% saturation rate. He’d better go build grocery stores, because people needs food EVERYDAY! Or better yet, set up offices in China & build an online casino, the only problem is China’s economy is about to hit the skids too. Why didn’t he invest in oil in Nigeria like the Chinese did?

  • bluekid

    JZ is not broke, only in America he is having these Liquid problems, In his Swiss Euro bank he is not having any problems at all just like OJ they have people over their money that know how to move and shake. If you notice JZ and Bey Bey is more so in Europe than in the United States. Go Figure!

    Poor a&& people would never understand this, that are clueless of banks other than here in America.

    No body in their right mine would have money here. Euro is the way to go.

  • hiya

    this is supposed to be a terrible year for beyowulf and jz, this year will kill their relationship forever. and yeah he got $150 mill for the live nation deal but uncle same got $75 of that and his jew attorneys got 25% he is still left with a lot of money but not $150. and their wedding was not $10 million some people on this blog are sure stupid. any way good luck jz and beyowulf you will need it this year. maybe all the ish jz did 13 years ago is finally gonna come to haunt him this year.

  • hiya

    I knew that J hotel was never going to happen. the only people who would stay there anyway are dumb blacks. smart blacks would never give their money to jz. he is a fake loser for sure.

  • Miami chick

    ThatBlkChick, IVB & Money Magnet, you guys are all spot on.

    Word to the wise…don’t rejoice in another’s downfall or tribulations, instead take heed and learn from it.

  • 1M isn’t that much money..

    If Nicholas Cage can go flat broke busted..so can anyone else..

  • TOPNOTCHKILLA

    DONT BE FOOLED JAY HAS MONEY!

  • http://www.industryexposed.com don’t shoot the messenger

    all you need to know about Jay-Z and Beyonce at www dot industryexposed dot com

  • 2Sweet

    Well, I wouldn’t mind having his bank account regardless. A financial downfall for him would still be anybody’s come-up. LOL! And I’m not a fan of this dude but he’s stacked up.

  • YNV Me

    a lot of wealthy folks live off their “net worth”..

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