Jay-Z and Roc Nation Sports: Good Business?

Earlier this week, Jay-Z has proven once again that he is a serious business, man. Already a household name in both the music and fashion realms, Hov has officially extended his talents into a new venture: professional sports. Lining up with leading sports and entertainment agency CAA, he launched Roc Nation Sports. And in true Jay-fashion he has entered the game with a bang by signing two big-name athletes to his newly formed agency with Yankees superstar Robinson Cano and New York Giants’ wide receiver Victor Cruz. The former broke the news by firing his big-time agent Scott Boras, who is one of the most influential characters in the professional sports game. According to Jay himself, his involvement in sports is more than just logical but rather natural:

“Because of my love of sports, it was a natural progression to form a company where we can help top athletes… the same way we have been helping artists in the music industry for years.”

However, not everyone in the industry shares his enthusiasm. Despite his past success, opinions are mixed on whether or not Jay and Roc will succeed in the sports game. Billboard talked to industry experts about the potential prospects of Jay-Z’s sports endeavor in their article “Jay-Z and Roc Nation Sports: What Are Its Prospects?” While comparisons with Master P‘s now defunct sports management company, who yielded what is considered one of the worst in sports history for his only client NFL running back Rickey Williams, seem to be unjustified at this point, it remains to be seen what Shawn Carter’s true intentions are behind his latest branch. Keith Reed, senior editor at ESPN the Magazine, who specializes in sports and business management, says:

“I don’t know how big of a deal it is right away. I think it’s fair to say that entrepreneurs have their first acts… and if they’re really successful and transformative, then they get a second act. A great example of that would be [BET founder] Robert Johnson. Here’s a guy who started a television network, ran it, build it, took it public, took it back private and made a billion dollars. And then he started his second act. [He’s the former majority owner of the NBA’s Charlotte Bobcats.] When I look at Jay-Z beginning his second act, I have to ask the question, ‘Is this a guy who’s second act is going to be all about building the kind of clout, the kind of influence in sports that he already has in entertainment?’”

According to Keith Harrison, associate professor of the DeVos Sports Business Management, it is all about branding anyway. He argues that it was music what made artists like Ice Cube, Dr. Dre, 50 Cent, Queen Latifah and Jay-Z entrepreneurs in the first place. However, it was their respective business ventures that made them wealthy.

“You have to study how they broaden their brands. All of these people start out in a musical content and they evolve. It’s a natural convergence of sports and entertainment management. If we listen to Jay-Z over the years, we kind of knew this was coming. He’s rapped about his affinity with sports. He wants to get in that game. It’s not necessarily going to be a great revenue return [at first]. We have to understand that Jay-Z is positioning these things to market the other businesses he has.”

And that’s exactly what Hova has to offer to the game, according to Ira Childress, president of Childress Sports Consulting – which works with college and professional athletes.

The biggest thing Jay can provide… is the ability to build and have relationships. Jay will provide access. That’s key. It’s all based upon trust. Robinson Cano knows that Jay-Z is working with people who can get the numbers. But he also knows ‘I trust Jay.’ So that’s a big step.”

What are your thoughts on this? Do you agree with Roc Nation Sports being a logical and lucrative addition to Jay-Z’s business operations? Discuss below and make sure to read the entire article over at Billboard for more expert views.