Jay-Z Rep Explains Las Vegas 40/40 Sale

As with all news involving Jay-Z, the confirmation that he decided to sell the Las Vegas location of his 40/40 Club to the Las Vegas Sands Corp. [click to read], set off a seemingly endless stream of rumors. Speculation was further fueled by the fact that neither party would discuss the purchase price, although the New York Post estimated the offer was upwards of $44 million. After several reports [click to read] insinuating the 40/40's Hip-Hop appeal was not welcome in Las Vegas, Jay-Z's spokesman, Ron Burkowitz cleared up the speculation.

"The club was doing good business," Burkowitz told the Los Angeles Times. "If you went there on a weekend you saw it was packed. Maybe, at other times it wasn't as crowded. But that is true everywhere. The club was doing fine. What is going on here is that [40/40's 24,000 square feet] is valuable real estate, and they came to us with an offer and this was a good business deal."

Las Vegas Sands Corp., the new owners of the club formerly known as the 40/40, have a Nevada gaming license, which means they can offer gambling--a component which wasn't available under Jay-Z's lease.

In unrelated news, Jay-Z will officially kick off his Live Nation deal by opening the newly renovated Hollywood Palladium on October 15. The venue, which is estimated to seat about 4,000, will host Jay along with a 12-piece band. This will serve as the second opening of the Palladium in nearly 70 years. The building was christened with a Frank Sinatra performance on Sept. 23 1940.

"I'm honored to play such an iconic venue," Jay-Z said in an issued statement. "Just as Frank ushered in a golden era, I hope this opening will mark the beginning of a resurgence in generation-defining live music." Tickets go on sale Sept. 5. The Roots will combine with Gym Class Heroes for a twin bill for the following show on Oct. 17.