New York state now owns a stake in JAY-Z's Roc-a-Fella Records after winning a bid for Dame Dash's sought-after stake in the iconic label.
According to the New York Post, an anonymous rep from Albany put down a $1 million bid during a federal auction held in Manhattan on Thursday, November 14. The state government placed a creditors bid for one-third share of the brand Hov, Kareem "Biggs" Burke, and Damon Dash founded in the early '90s. This type of bid means the buyer doesn't have to front the payment immediately, and allows them to resell their share without any issues.
“The auction is over but the work is not complete,” attorney Chris Brown said. “Mr. Dash’s legacy is now New York state property. I will work with New York state and New York City as the next phase of ownership of the shares.”
New York state will now be able to profit off the rights to the label's prime asset, Reasonable Doubt. New York state hopes to use their share of the company that released JAY-Z's debut album to help recoup the $8.7 million that Dash owes in back taxes. In addition to that hefty debt, Dash also owes $193,000 in child support, which will be paid using funds from the bid. He's also on the hook for a $823,000 judgement to director Josh Webber. There's no word on how or when the state will earn enough to pay Dash's massive bills.
The auction for the rights would've happened earlier this year, however, Hov reportedly tried to halt the auction to claim the rights to his first studio album. He maintains the trademark will eventually revert back to him in 2031. The state responded by calling Hov's claims "false and extremely damaging" to the city's mission to pay Dash's debts. However, court documents obtained by iHeartRadio show a judge refused to hear the state's arguments on the matter.
Damon Dash has yet to comment on the situation. He's currently focused on promoting his new BET film Honor Up with Cam'ron, Murda Mook and more.