50 FRAUD? 50 Cents’ Bankruptcy Filing Proves He Is A Lousy Business Man. We Have The Mind Boggling, Money Blowing Details.
When it comes to hip-hop and making money, for years 50 Cent has been put on nearly the same level as Diddy and Jay-Z . I could never imagine Diddy or Jay filing for bankruptcy…but I would have said the same thing about 50 if you would have asked me that question a month ago. Forbes had his net worth last year listed at $155 million. They too released a statement stating that they will be adjusting this number substantially. It’s appearing now that 50 Cent’s past success has to do more with dumb luck then smart loot.
THE VITAMIN WATER DEAL WAS NOT HIS IDEA
The genius of the infamous Vitamin Water deal actually belongs to Chris Lighty. Lighty had 50 drink Vitamin water (with the label showing) at the end of a Reebok commercial to bait the company into an endorsement deal. 50 Cent later agreed to be Vitamin Water’s first celebrity endorser in exchange for a $5 million fee and a 5% equity stake in the company. When the company was sold to Coca-Cola for $4.1 billion, a few years later, 50 cent made nearly $200 million on the deal.
We were all romanced by this story and just attributed 50 with being a brilliant business man. It was a story that we all wanted to believe and one that 50 never talked us out of. However, when the album sales and tours dried up, so did the money. But….spending never stopped and Curtis Jackson’s legal issues were just getting started; all of what led us to where we are today.
Here is how his ugly personal balance sheet breaks down:
G-UNIT IS LOSING MONEY
This isn’t really a big surprise. As a huge fan of G -Unit back in 2008 they are only on my mixtapes now. However what is surprising is that G-Unit is represented in several different entities each one with a separate profit and loss statement. As you can see over the last three years some parts have gotten better and some have grown worse.
G-Unit Television is probably doing well with the success of the 50-Cent produced TNT show Power, it’s hard to lose money touring so that division is in the green as well. As for selling albums, that business is tough on most artists. G – Unit records has lost over $3 million in the last 3 years.
Also notice, that this year 50 sold his entire catalog of music. This is how you know he is not lying about his bankruptcy or financial health.
HE HAS DEBT ESTIMATED AT $32,509,549.91
This is what actually pushed him to filing bankruptcy. He lost two huge lawsuits that put him in a place financially where he would not be able to cover the debt without liquidating substantial money generating assets. The first loss was $18.4 million in a headphone deal that went bad. He was trying to develop his own “Beats” by Dre and instead just got beat in court by a developer when the agreement they had in place went bad.
The second big loss was a recent law suit against Lastonia Leviston. This loss is to the tune of $7 million. This one especially hurt because 50 Cent posted a sex tape of Lastonia online in an attack on his rival Rick Ross; a decision that has come back to bite him…..in the wallet.
MONTHLY EXPENSES $108,000
Monthly expenses are like personal overhead. This is what usually does the most damage for high rollers. It’s what did Mike Tyson in as well as MC Hammer. If you or I had to get our monthly expenses under control we would just adjust the thermostat, maybe cancel HBO and get a new cell phone plan. When you are living in Mike Tyson’s old CT mansion, jet-setting from NY to LA, a simple adjustment is like removing one chair out of Yankee Stadium. You need a lifestyle change.
His household expenses look like this:
Now that’s just to keep the lights on. Now you have to drive, get dressed and live. According to the bankruptcy filings that’s going to cost you another $36K. This includes child support.
$855,091 – CHILD SUPPORT WILL TOTAL
Child support is costing the rapper $12,000 per month for his two children that he has with his model, ex-girlfriend Daphne Narvaez. TMZ reports that he will have spent over $800,000 by the time both of his children turn 18. Unfortunately bankruptcy does not make child support go away.
$500,618 – THE KING OF CARS
The $5745 auto lease is for a Bentley Mulsanne. 50’s total networth of cars is not really that bad considering. He is claiming just $500,618 in total. That’s less than ½ of a Buggati. According to insurance estimates, besides the Bentley Mulsane he has: a 1966 Chevrolet Coupe, a 2015 Chevrolet Suburban,a 2010 Rolls Royce Phantom Drophea,a 2005 Chevrolet Suburban,a 2008 Dodge Sprinter,a 2003 Chevrolet Suburban and a 2012 Suzuki Kizashi Sport.
$8.25 million MORE ON HIS HOUSE
The house has bankrupted all previous owners. Seriously. The house was originally built for $2.3 million for the founder of Colonial Realty, Benjamin Sisti. Sisti was imprisoned for bankruptcy fraud. The house was then sold to Romas Martsinkiavitchous. He was an Lithuanian importer who held the house for only 1 year before filing for bankruptcy. He then sold the house to Tyson, who lost it to his ex-wife and it was then sold to 50 cent. The house has a full size basketball court, home theater, disco and more. It was once listed for $22 million. When 50 toured the house with Oprah it was listed for just under $10 million. When he was on Oprah he was quoted as saying,
I never understand how artists get in a great situation and then not have time to count money. Like, I have plenty of time. I
Here is the snippet from Oprah were they tour his house! It’s currently on the market for $8.25 million. 50 owes $1 million on it.
WHAT’S NEXT FOR 50?
50 will continue to be 50. Filing for bankruptcy is not that uncommon in the world of business. In fact, it really doesn’t necessarily mean you are a bad business man. Quite frankly it could mean just the opposite. Bankruptcy is a tool to be used and if used right can be an extremely intelligent, well planned way to put yourself in a more strategic position. 50 reportedly currently has $2.7 million in his personal checking account. Under the protection of the bankruptcy agreement, he will most likely be able to substantially reduce his debt and possibly get out of the $1 million that he owes on the Ct. mansion and free himself of the $76K per month he is flushing down the drain. His $18K and $7k legal obligations might be able to be settled for pennies on the dollar.
He’s not only still rich, he is also still famous and has a wealth of connections. Much different from if you or I were filing bankruptcy. If anything, this bankruptcy has poured fuel to his fame and hopefully he can capitalize on it the right way. In short, he’s not going anywhere. Let’s just hope a more humble, responsible 50 emerges from this public embarrassment.
And for those who 50 has publicly clowned in the pass, all Thank You should be sen t directly to the home of Mr. Karma.
Source(s): Forbes, Huffington Post, WSJ.com, Business Insider