Image Source: PRNewsfoto/Moet Hennessy

Can LVMH And Jay-Z’s Ace Of Spades Take Over The Sports World?

CBx Vibe:What’s Free” Meek-Mill Ft. Jay-Z

By Richard Johnson

  • Jay-Z strikes a deal with LVMH worth over $600M for his Armand de Brignac
  • This deal could facilitate cross-pollination into the sports world for LVMH and Jay-Z’s Roc Nation Sports

LVMH’s Moet Hennesy (LMUY +2.55%) has purchased 50% of Jay-Z’s Armand de Brignac, a deal that could facilitate cross-pollination into the sports world, in which both sides are deeply involved. This new deal is worth over $600 million, which could result in a cash-payout of roughly $300 million along with a new push into the sports arena. It seems like his lyrics hold true: “I’m 50% of D’usse and it’s debt free – 100% of Ace of Spades, worth half a B – Roc Nation, half of that, that’s my piece – Hunnid percent of Tidal to boss it up with my G’s.”

Why This Matters: LVMH’s newly found interest in sports entertainment has led them to partner with top athletes and artists to plug their brands where the light shines the brightest, making Hennesy the “Official Spirit of the NBA”. Also, the league’s Larry O’Brien trophy is now presented in a case designed by Louis Vuitton as part of a multiyear partnership with the NBA. Other LVMH subsidiaries take part in athletics, too. Dior released a Nike (NKE +1.59%) Jordan sneaker last summer, Tag Heuer sponsors Porsche racing and athletes like Naomi Osaka and golfer Tommy Fleetwood, and champagne line Veuve Clicquot sponsors the Polo Classic.

Additionally, Jay-Z’s Roc Nation Sports represents Kyrie Irving, Leonard Fournette, Marcus Rashford, and many other athletes. His company also has an ongoing partnership with the NFL for its Super Bowl halftime show curation, and social justice initiatives. It will be very easy to now blend Armand de Brignac and LVMH deeper into the sports world.

Let’s not forget that In 2006, Cristal executive Louis Roederer voiced his displeasure over the hip-hop community’s association with the high-end champagne brand. Jay-Z, who had been instrumental in the popularity of Cristal among hip-hop fans, took offense and his business to Armand de Brignac, which makes Ace of Spades champagne, buying 50% of the company in 2006 and the other half in 2014.

As if questioning Jay’s iconic pivots and outreach wasn’t hard enough, consider this: a bottle of Ace of Spades champagne averages $292, but the price can increase dramatically and go north of $200,000! So to all of the entrepreneurs, innovators, and noble hustlers-alike, soon we will be thanking Mr. Carter for shrugging his shoulders at the nose-bleed-seat-sideliners, with a toast to Black excellence.

Situational Awareness: It’s important to note the financiers of our time are not only found on Wall-Street, but across all industries and disciplines. While Hip-Hop artists have rarely been viewed as fiscally conservative, it was only a matter of time before the industry made the transition; without fashionably assimilating I might add.

CBx Vibe:What’s Free” Meek-Mill Ft. Jay-Z

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