Jay-Z is being investigated by the SEC over $200m Rocawear sale to ICONIX

[Man]

You can't have it both ways, either it was a company with $700 million in revenue that sold for $200 million (red flag), which then begs the question of how you can devalue something you bought for roughly 30 cents on the dollar. Or it means that the accounting irregularities were going on BEFORE Rocafella was sold (remember, they had Russian backers from the start) and when it got to a certain point Russians took over fully, paid off the bag man, wound down the operations and bailed. Classic pump and dump the Brooklyn way

Revenue alone doesn’t indicate a company’s profit or value

You have to at least understand the costs for starters

For example if each of their piff hoody sold for $1

When you consider the costs of manufacturing, paying an staff, transporting them etc say it cost them 90 cents per hoody - so for each hoody sold they’re only making 10 cents profit

They could’ve sold 700 million hoodies meaning 700 million revenue but only really made 70 million out of it

Quick maths numbers used above are just to explain revenue vs profit only

Really we all don’t know shyt without seeing their finances

 

[blackzeus]

Revenue alone doesn’t indicate a company’s profit or value

You have to at least understand the costs for starters

For example if each of their piff hoody sold for $1

When you consider the costs of manufacturing, paying an staff, transporting them etc say it cost them 90 cents per hoody - so for each hoody sold they’re only making 10 cents profit

They could’ve sold 700 million hoodies meaning 700 million revenue but only really made 70 million out of it

Quick maths numbers used above are just to explain revenue vs profit only

Really we all don’t know shyt without seeing their finances

Why is Uber worth a billion +? Tesla? Is it because of their net profits?

 

[10:31]

holy shyt...he legit says there were Russian mobsters

@THE RETIRED SKJ


Keith Watson exposes Dame Dash - Reveals the REAL reason why Jay was made president of Def Jam *WOW*

@DonKnock @dza @88m3 @wire28 @smitty22 @fact @Hood Critic @ExodusNirvana @Blessed Is the Man @dtownreppin214 @JKFrazier @BigMoneyGrip @.r. @Dameon Farrow @TheNig @VR Tripper @re'up @Blackfyre_Berserker @NY's #1 Draft Pick

Bro Jay Z is done.

I’ve been in here reading and processing all of this going back to the first court date he skipped in the hearing

All I can say is “ “

I guess he stepped on the wrong toes and now we get to witness his downfall.

 

[☑︎#VoteDemocrat]

 

[10:31]

Outside of the music licensing residuals I’m really starting to wonder what he does to earn his money on a day to day basis..

Obviously he’s an entertainer/entrepreneur but does he have an office at Live Nation? Does he oversee the subdivisions like Rocnation sports and the music managing or is he just the face of all this?

Now let’s get analytical/critical ..

Why is a man worth a billion (or more so to speak) still touring?

I get a show here and there for the love.. but not still needing to do full on tours

Is he just the face for/of Livenation?


And now I’m 2018.. The Feds come knocking ?

 

[banner34]

Do people even still wear Rocawear

 

[prophecypro]

He'll be fine, some of y'all are making a bigger deal out of this then need be

 

[10:31]

He'll be fine, some of y'all are making a bigger deal out of this then need be

When the Feds ring your house needs to be in order.

This situation is beginning to feel like a candle in the sun..............

 

[prophecypro]

When the Feds ring your house needs to be in order.

This situation is beginning to feel like a candle in the sun..............

I just think he's the one guy who's probably smart enough to have his stuff in order and surronds and listens to enough smart people. This isnt making that much of a dent in the news cycle. I dont know I'll be shocked if anything comes from this one venture oversight, like them seizing assets or doing a bigger investigation that reveals more stuff covered up .....

Then again its been a wild year for Hip Hop outside of music

 

[Nemesis]

the Coli must be home to some of the dumbest people on the planet .....

how does SEC investigating Iconix become SEC investigating Jay Z ????

its like some of you are legitimately stupid ...lol

it doesnt take a 5 year old to guess that Jay is amongst quite a few companies/individuals supeonad by the feds whilst they investigate the company... duh

 

[10:31]

the Coli must be home to some of the dumbest people on the planet .....

how does SEC investigating Iconix become SEC investigating Jay Z ????

its like some of you are legitimately stupid ...lol

it doesnt take a 5 year old to guess that Jay is amongst quite a few companies/individuals supeonad by the feds whilst they investigate the company... duh

Are we dense or did you completely miss the post where he was supeonad and called into a court hearing he’s skipped (twice)

Or the post with a statement from his lawyer stating they feel like he’s being picked on because he’s an entertainer ?

 

[blackzeus]

The $700 million in revenue was revenue across all retailers for Rocawear-branded products in 2007.

Think of it like this:

1) Rocawear sells a branded XXXXL white tee with a Rocawear logo to Macy's wholesale for $10.

2) Macy's turns around and sells that same white tee to a young nikka for $35.

From the retailers' perspective (Macy's) that Rocawear white tee generated $35 in revenue to Macy's.

From Rocawear's perspective (the manufacturer), that Rocawear white tee generated $10 in revenue to Rocawear.

From this article:

Jay-Z Cashes in With Rocawear Deal

"...Rocawear currently does more than $700 million in annual retail sales, Iconix said."

Whenever a "retail sales" figure is quoted for an apparel manufacturer that distributes all of its product through brick & mortar retailers (meaning they don't own any of their own stores) that figure is calculated off the price that those retailers sell the goods for - not the wholesale price that the actual manufacturer receives for those goods.

The idea is to get an apples-to-apples comparison of actual market demand for different brands - because all these different brands are sold right next to one another in a Macy's, Bloomingdale's, etc., what Wall Street is most interested in is what the final price to consumers is - with the assumption that different wholesale arrangements can be worked out between the manufacturer and retailers given the demand for their particular brand.

Given that wholesale prices are generally anywhere from 1/5-1/2 of the final retail price, it isn't far fetched to assume that Rocawear did ~$200-$250 million in revenue on those $700 million in retail sales. Which would make this transaction perfectly reasonable

Iconix Brand Group, owner of fashion brands including Joe Boxer and Candie’s, said yesterday that it had agreed to buy the Rocawear brand, co-founded by Shawn Carter, the hip-hop artist known as Jay-Z, for $204 million in cash.

Rocawear has annual sales of over $700 million. The Rocawear acquisition, the largest deal Iconix has done, will be financed from proceeds of a loan made to the company by one or more affiliates of Lehman Brothers , and is expected to close in March.

Iconix also reported a higher fourth-quarter profit and raised its 2007 earnings outlook. The licensing and brand management company, in a statement, said it expected Rocawear to generate about $43 million in royalty revenue in the first 12 months.

Iconix has been on an acquisition spree, having recently picked up casual clothing brand Ocean Pacific and announced plans to purchase women’s active wear brand Danskin last month.

As part of the deal, Iconix will also enter into a separate joint venture with Mr. Carter to establish a new brand management and licensing company to identify brands to be acquired or developed. Mr. Carter will continue to be chief creative officer of the Rocawear brand, Iconix said.

Looks like it was a royalty revenue play, which in all honesty makes a lot more sense. $204M is roughly 5x royalty revenue, it's not a bad deal. If it was off of $700 million that's the red flag because that would have made Rocawear a billion dollar company.

 

[SleezyBigSlim]

Why is Uber worth a billion +? Tesla? Is it because of their net profits?

No, its because people believe in them and that they will make money eventually. Amazon has never made a dime of profit and yet one of the worlds most wealthiest companies

 

[blackzeus]

I’ll have to plead ignorance here. What are the Street credit ramifications of testifying in an SEC investigation?

F*ck Wall Street ramifications what are the physical well being ramifications of snitching on Russians?

Spoiler

 

[blackzeus]

No, its because people believe in them and that they will make money eventually. Amazon has never made a dime of profit and yet one of the worlds most wealthiest companies

So what you're saying is that their valuation is based on their gross revenue not their net profits?