“I’m not a businessman, I’m a
business, man”. This lyric, which Jay-Z rapped in 2005, made it clear that he would
never become a corporate slave, but a brand name himself. Throughout the years,
Jay has established himself by taking over various industries, including music,
fashion and nightlife. In 2013, he decided to continue expanding by launching
Roc Nation Sports agency, partnering with CAA Sports, who represents more than
800 athletes (Weisman). Roc Nation took off quickly by signing Yankees
superstar, Robinson Cano, which created an irruption in the sport’s world. Cano
was previously signed to big-time agent Scott Boras, who he fired to get on
board with Roc Nation. While many believed this was a unwise move, Robinson
thought Roc Nation would be a perfect fit for him. In a statement he released in
last year, Cano explained, “I am confident that the pairing of Roc Nation
Sports and CAA Sports will be essential in helping me accomplish my short and
long term goals (Fuse). This is can be found in the video clip below.
And, Jay did not stop there! Since,
he has signed Kevin Durant of the Oklahoma City Thunder, Victor Cruz of the New
York Giants, CC Sabathia of the New York Yankees, Geno Smith of the New York
Jets, Hakeem Nicks of the Indianapolis Colts, Skylar Diggins of the Tulsa Shock,
and others (Harper). Within a year, Roc Nation is already representing the top
names in sports, which has caused chaos within the industry.
Many wonder
how this rapper-quickly-turned agent has quickly built an empire with some of
the best athletes in the game. Well, first of all, there is a certain aura
around Jay-Z. We are talking about a man who has completely captured the
American Dream with a true rags-to-riches tale. He is married to his beautiful,
equally successful counterpart, Beyoncé, friends with President, the most
famous figure in the history of Hip-Hop and a household name around the
country. Roc Nation did not need to market or pitch themselves to athletes because
his name does this for them. They want to jump on board with Jay to delve
further into the spotlight and reap his unlimited connections. With the
partnership with CAA Sports, Roc Nation has “gateway to licensing, endorsement,
speaking, philanthropy and video game opportunities” (Weisman). Basically, they
offer everything a player could want and need (and then some!). Let’s not
forget the possibility of being on stage of basically any concert in the world,
which most likely tempts athletes some more. Also, many of these superstars are
able to relate with Jay-Z in ways a lawyer or accountant cannot. In a US Weekly article, Marc Ganis, president
of SportsCorp, explained that Jay-Z
can say, “We both came from humble beginnings, both of us have women chasing
us, both of us want to make a lot of money, but not pay a lot in taxes” (US Weekly). Many people Jay has signed
have come from similar backgrounds and understand the amount of work it takes
to become successful. With this unique understanding, they feel comfortable in
his possession.
Roc
Nation’s quick success has caused a stir among others in the business. Many
industry leaders, including Scott Boras and Rob Pelinka, have complained
publicly accusing Jay of poaching their athletes (Heitner). Although there has
not been a claim filed, there is room for legal ramifications. According to an
article in Forbes, these agents could
sue Roc Nation on the terms of “tortious interference” (Heitner). This would
call for a long and expensive trial for the new sports agency. Also, when
looking at regulations governing sports agents, “it is puzzling that Jay-Z was
able to conduct business in the way he did in the early stages of Roc Nation
Sports” (Weisman). Jay did not become certified as a player agent until after
he had already signed Robinson Cano, Victor Cruz and Geno Smith. If Jay-Z acted
as a Contract Advisor to these players before he was eligible, he would be in
clear violation of NFLPA regulations (Weisman).
Love him or hate him, Jay-Z is an
accomplished man. With the biggest names in sports, Roc Nation Sports has
become an empire that only keeps expanding. Do you think athletes will continue
to sign with Jay-Z? What do you think is his appeal? Do you believe Roc
Nation’s quick rise is unethical? And, does Jay still have 99 problems or does
he have a few more on his plate now?
Works Cited
Heitner,
Darren. "Jay Z Has 99 Problems, But Is Being A Sports Agent One?" Forbes.
Forbes Magazine, 10 Mar. 2014. Web. 12 Apr. 2014.
"Jay-Z Creates Sports Agency, Signs Victor Cruz and
Robinson Cano," Us Weekly 3 April 2013. Web.
"Roc
Nation Sports." YouTube. FUSE, 02 Apr. 2013. Web. 12 Apr. 2014.
Weisman,
Jon. "Jay-Z Looks to Roc the Sports World." Variety. N.p., 11
Apr. 2013. Web. 12 Apr. 2014.
When I first heard that Jay-Z had created a sports agency I was confused. What is a rapper doing managing the careers of athletes? But then again, he’s Jay-Z and he can pretty much do whatever he pleases. Jay-Z knows good business, as he so often boasts on his records, and it seems that just about everything he touches turns to gold. I can respect the fact that Jay-Z and his athletes feel as though they are cut from the same cloth with their humble beginnings and all, but that still does not answer the question of whether or not this is in the best interest of their athletic careers.
ReplyDeleteJay-Z is a man of many talents, but can he master being a sports agent as well? Mr. Carter and his wife are taking the world by storm, and there seems to be no boundaries to their influence. But Jay-Z has about a dozen other priorities, and will his athletes really be at the top of the very long list? I think that he may have put more on his plate than he can handle. Whose to say that the specialized attention athletes would get from agents such as Scott Boras and Rob Pelinka, who have no competing priorities, would not serve them better? I think that Roc Nation Sports’ saving grace is that they are partnering with CAA Sports. “CAA Sports represents more than 800 athletes, in addition to coaches, on-air broadcasters and sports personalities, and provides a gateway to licensing, endorsement, speaking, philanthropy and videogame opportunities” (Weisman 1). It seems that CAA is well aligned with the way that Jay-Z likes to do business (having your hand in as many pots as possible) and they have experience doing it.
Jay-Z claims that this jump from music to sports is the logical next step for him. He states “because of my love of sports, it was a natural progression to form a company where we can help top athletes in various sports the same way we have been helping artists in the music industry for years” (“Jay-Z Creates” 1). The major difference between helping artists and helping athletes however is that Jay-Z is actually a musician, not a pro athlete. It seems that the biggest draw to being an athlete on Jay-Z’s label…excuse me, agency… is the extracurricular opportunities that he can provide. Victor Cruz and Robinson Cano recognize these opportunities and are going to use them to the best of their abilities. Cruz is a spokesperson for several companies and is beginning is own clothing line, there are all things that Jay-Z can help him further (“Jay-Z Creates” 1). When Robinson Cano was asked about his joining Roc Nation Sports, he said, “I am confident that the pairing of Roc Nation Sports and CAA Sports will be essential in helping me accomplish short- and long-term goals” (Heitner1). It is apparent that both athletes have their eyes set on more than a trophy.
It seems as though Jay-Z is setting out to create more moguls forged in his image and likeness and passing on the philosophy of being a business, man. When you take this into account, the whole business plan makes a lot more sense, as do the athletes that he has signed. Roc Nation Sports now manages some of the most infamous names in the business with the biggest off-field/court personalities. It is reasonable to aspire to be more, the American dream was constructed from that philosophy, but whether or not this will be the best move for their athletic careers has yet to be determined.
Works Cited
- Heitner, Darren. "Jay Z Has 99 Problems, But Is Being A Sports Agent One?" Forbes. Forbes Magazine, 10 Mar. 2014. Web. 12 Apr. 2014.
- "Jay-Z Creates Sports Agency, Signs Victor Cruz and Robinson Cano," Us Weekly 3 April 2013. Web.
- Weisman, Jon. "Jay-Z Looks to Roc the Sports World." Variety. N.p., 11 Apr. 2013. Web. 12 Apr. 2014.
The launch of Roc Nation Sports agency is the icing on the cake for the Jay-Z brand. His business endeavors range from a clothing line to a music label to a night club. Getting into sports representation truly illustrates that no industry is safe from the wrath of the rapper who hails from the slums of Brooklyn. He may have 99 problems, but getting rich certainly is not one of them.
ReplyDeleteJay-Z received a lot of skepticism when he formed Roc Nation Sports, as many industry professionals questioned if he would be able to attract high level talent and prove valuable to them. Boy were those naysayers wrong. Jay was able to partner his company with the sporting division of Creative Artists Agency. This is the largest talent agency in the world and represents over 800 clients (Weisman). With this backing, Jay began to sign one big name client after another, quickly turning the industry on its head. Robinson Cano was the first major client to with Roc Nation Sports, a surprise to nearly every member of Major League Baseball. Cano had previously been represented by Scott Boras, the biggest agent in professional baseball. Boras has built a reputation of securing the biggest contracts for his clients, making him extremely difficult to compete with. However, that didn't stop Cano from moving to Roc Nation Sports, as Jay-Z explains in his song Crown, "Scott Boras, you over baby, Robinson Cano, you coming with me." Almost instantly after that, Jay signed Kevin Durant, followed by Victor Cruz, CC Sabathia, Geno Smith, Hakeem Nicks, and Skyler Diggins (Harper). All of these athletes are superstars and no one projected that would leave established agents to move to the newcomer on the block.
Rob brings up a couple of good points as to how Jay-Z was able to establish his agency as a player in this industry in such a short period of time. Not only is he married to Beyoncé, but he also hangs out with the President on the regular. Jay has built his brand into an empire that is unrivaled in the Hip Hop world. He portrays his success as attainable for anyone who joins his team, while remaining approachable and friendly to the people he represents. As Rob stated, this is not all he is offering. The backing of CAA Sports gives Roc Nation a "gateway to licensing, endorsement, speaking, philanthropy and video game opportunities" (Weisman). Not only do athletes get a wealth of resources when they sign with Roc Nation Sports, but they also get to be represented by Jay-Z, a business mogul who most of his clients call a friend. It is a win-win situation that no other sports agent has the ability to compete with.
The only issue is that there are a few problems Jay-Z could face with his new obsession in sports representation. First, he has stolen clients from major agents who are not happy about their loss in business. Jay could face lawsuits as a result, which could ultimately take years and millions of dollars to settle. Second, Jay began courting and signing athletes prior to becoming a certified agent. Rob pointed out that this could lead to a violation of the NFLPA regulations, hampering his ability to continue to sign clients.
ReplyDeleteRegardless of what the future has in store for Jay-Z, Roc Nation is certainly shaking up the sports agency industry. It will be interesting to see if any of the legalities prevent Jay from expanding as quick as he has. Only time will tell.
Works Cited
Heitner, Darren. "Jay Z Has 99 Problems, But Is Being A Sports Agent One?" Forbes. Forbes Magazine, 10 Mar. 2014. Web. 12 Apr. 2014.
Weisman, Jon. "Jay-Z Looks to Roc the Sports World." Variety. N.p., 11 Apr. 2013. Web. 12 Apr. 2014.
Jay-Z is the epitome of a modern business mogul. He has worked his way to the top, made a name for himself, knows how to conduct good business, and maybe most importantly, people respect him. Despite the fame and fortune he has earned for himself, he presents himself as a family man and has kept his life, more or less, out of the spotlight and safe from any bad press. The man is the complete embodiment of the American Dream. With all of his success, and the good name he has built for himself as a businessman it never surprised me that he was branching out further as a founder of Roc Nation Sports.
ReplyDeleteJay-Z stated, “Because of my love of sports, it was a natural progression to form a company where we can help top athletes in various sports the same way we have been helping artists in the music industry for years." Besides his love of sports it’s no secret that professional sports is a very lucrative business. And, as a businessman, why wouldn’t he want to get involved? If you think about it, combining the appeal of big name athletes like Victor Cruz and Robinson Cano with Jay-Z, the possibilities seem endless. And with the backing of CAA Sports, Roc Nation now has a "gateway to licensing, endorsement, speaking, philanthropy and video game opportunities" (Weisman).
The thing that undoubtedly attracts athletes to Roc Nation Sports is their ability to relate to him. An article in US Weekly reports that Jay-Z has an “ ‘ability to connect with the athletes in a way that a player agent who came up as a lawyer or accountant never will,’ Marc Ganis, president of SportsCorp, told the New York Times.” Essentially, athletes want to be represented by Roc Nation Sports because they feel like someone who understands them, someone who they can trust, will be representing them.
Additionally, professional athletes typically acquire an empire for themselves of endorsements, clothing lines, sports equipment, etc. And, as a man of all trades, Jay-Z is the perfect advisor for athletes’ further enterprises. The US Weekly article goes on to say “Cruz, 26, is already a spokesperson for Nike, Time Warner Cable, and Campbell's Chunky soup, and has even started a clothing line, Young Whales, with a partner -- all things that the 43-year-old Roc Nation founder will likely help further.”
Works Cited:
"Jay-Z Creates Sports Agency, Signs Victor Cruz and Robinson Cano," Us Weekly 3 April 2013. Web.
Weisman, Jon. "Jay-Z Looks to Roc the Sports World." Variety. N.p., 11 Apr. 2013. Web. 12 Apr. 2014.
ReplyDeleteI think it’s safe to say Jay-Z and/or Beyonce is brought up in conversation at least once a day. It’s impossible to go anywhere without hearing someone humming a Beyonce tune, especially that one about surfboards. Corporate publicity stunts aside, Jay-Z’s last album Magna Carta, Holy Grail, only further cemented his status as a business man. His fans might have liked or hated his recent album, but the campaigning for it was effective in making the release an engaging spectacle. Say what you want about his music, but Jay-Z’s drive to become more than a household name is making that man more money, and less problems.
How is it that a rapper with no prior business experience came to be such a prominent figure in today’s music, sports, and corporate world? I don’t know if there’s an exact explanation for it, but a few compounding factors could give us some insight. Michael Jordan is a name that’s been synonymous with the sport of Basketball since before I was born. Straight out of college, MJ signed an endorsement deal with Nike for 500,000 dollars, back in 1984 when he first started in the NBA (Badenhausen). Today, Forbes has MJ as the second highest paying athlete behind Floyd Mayweather. Earning himself $80 million a year, while not having played a game of basketball in 10 years. Anyone with half-a-brain can see that there is a ton of potential to make money in sports.
Having ambition doesn’t necessarily result in a return in investments. Being ambitious is beneficial if you have the ideas to supplement the drive. Owning an NBA franchise is ambitious. The average NBA franchise (team) is worth $634 million (Badenhausen). If you also consider the brand endorsements, tv contracts, attendance revenues, and put it in a global perspective, imagine the possibilities in terms of monetary earnings and brand awareness. Jay-Z already owns a small share in the Brooklyn Nets, which he hopes to build into a profitable brand.
People are just naturally drawn to money. Coming from humble beginnings, Jay-Z recognizes the value of having money. So, to me, it makes sense that athletes are being drawn into signing with Jay-Z’s new Roc Nation Sports Agency (US Weekly). Having already signed highly sought-after prospects such as Kevin Durant (NBA) and Victor Cruz (NFL), Jay-Z is slowing establishing himself around recognizable athletes. Athletes can in-turn bring in endorsements and other potential investors. I believe that with Jay-Z’s history of establishing his own record label, he has mind for the management/representation business. Jay most definitely has the resources to make sure it gets done right as well.
Works Cited:
Badenhausen, Kurt. "As Stern Says Goodbye, Knicks, Lakers Set Records As NBA's Most Valuable Teams," Forbes 22 Jan.014. Web.
Badenhausen, Kurt. "How Michael Jordan Still Earns $80 Million A Year," Forbes 14 Feb. 2013. Web.
"Jay-Z Creates Sports Agency, Signs Victor Cruz and Robinson Cano," Us Weekly 3 April 2013. Web.