As the contract renewal of Jay-Z and Def Jam records is coming closer, rumours have started to gain momentum whether LA Reid will succumb to the exorbitant demands made by Jay-Z or will Jay-Z be fired.
Jay-Z aka Shawn Carter was hired by LA Reid, the chairman of Def Jam Records, two years ago, when the seminal rap label was struggling and needed someone to guide it through a rocky transitional phase. And Jay-Z met the challenge with great success by signing a host of young artists, including Rihanna and Ne-Yo.
But this year his contract is up for renewal and according to insiders, Jay-Z will be fired because of his high demands. A source told New York Daily News:
Jay is asking for several million as a base salary plus big bonus ‘bumps’ on records that do well. Reid isn’t going for it. They’re miles apart.
According to insiders, Reid is worried about Jay-Z’s busy schedule as he has a host of other business interest including his chain of 40/40 nightclubs and stakes in clothing label Rocawear, the New Jersey Nets basketball team and a Champagne concern. And to top it up, the rapper has come out with his own new album which is a huge success.
Some even feel that Reid is jealous with Jay-Z’s fame and position. A source said:
When Jay walks into a meeting, he sucks the air out of the room. Even without trying. At the Rock and Roll Hall of Fame awards, Jay and LA were sitting at the same table. But it was like LA was invisible.
But Reid has strongly denied the rumours by saying that there is no friction between him and Jay-Z. Reid said:
We really love Jay. He’s so important to our company, there’s not much we wouldn’t do to keep him here, money being the least of them. People at other labels may wish there was trouble. If you put the two of us in a room with an artist we want, we will sign that artist. It’s very hard to turn us down. I hope to work with him for many, many years. He’s magical. I need him.
