Rap Mogul Jay-Z Confirms Selling His 40/40 Club, Feeling Delighted

© Erik Kabik/PR Photos

Talk has been mounting around the web that Jay-Z has sold his 40/40 club in The Palazzo and Casino in Las Vegas. It was not until Wednesday, August 27 though that the hip-hop mogul broke his silence, officially confirming that he and his business partners are selling their hot spot joint to the Palazzo Resorts.

The amount of money he received from the agreement is not disclosed and the reason for the sale also isn't made public. Jay-Z's partners however said that the sale is simply for the lease and not the naming rights. That being so, the club will no longer operate under the 40/40 brand.

It's been claimed that The Palazzo is planning to renovate the club, making it into a restaurant as well as a large-scale race and sports center. Speaking about that matter, President and chief operating officer of the Palazzo, Rob Goldstein, said "By adding a complete gaming component to an already distinctive 24,000 square-foot space we will be able to create a very unique environment for our guests."

Jay-Z himself admitted to be feeling "delighted", claiming the sale as "a great business decision." He and his business partners furthermore are planning to open 40/40 clubs in Chicago, Tokyo and Macau within the next 12 months.

Jay-Z opened his Las Vegas 40/40 club in January 2008. Becoming a celebrity hot spot ever since, there have been reports of problems though. It struggled to open for New Year's Eve after reportedly failing inspection. Some of its employees also filed lawsuit, accusing it to have failed to pay them the minimum wage.

The first 40/40 club itself initially was opened on June 18, 2003, in New York. Its name reportedly refers to an exclusive club of baseball players who have 40 home runs and 40 stolen bases in one season.