Las Vegas Weekly

August 14, 2008 · 10:20 AM

Jay-Z’s 40/40 sale to Adelson rumored

By Robin Leach

Rumors are swirling this morning (Thursday) that rap mogul Jay-Z is in negotiations with Venetian-Palazzo officials to sell his 40/40 sports club ultra-lounge to Vegas hotel mogul Sheldon Adelson.

The New York Post is reporting : "JAY-Z is about to get richer. Las Vegas spies said the hip-hop mogul's in talks with the Las Vegas Sands Corp. - owners of the Venetian and the Palazzo - to sell them a 50 percent stake in his sports club, 40/40, for $44 million. An insider added, "That will make the 40/40 club in Vegas the largest sports-booking operation. People can gamble both at the tables and on games. The Sands will also have the right to open 40/40 clubs in London and across Europe." A rep for 40/40 didn't return calls."

Luxe Life has known for several weeks that plans were in the works for Jay Z to keep his club but trim its size as a nightclub and sports lounge. Up to half of the space that Jay Z opened there in December would then be refurbished and taken over by at least one of the existing Venetian-Palazzo celebrity restaurateurs. Luxe Life did not report the conversations as they were "preliminary in nature and no specific deal had been signed."

It is believed that Jay-Z invested in excess of $25-million to open his third 40/40 club. The other two are located in New York City and in Atlantic City. All have been major celebrity haunts of both A-list sports figures and Hollywood stars.

Both Emeril Lagasse and Steve Hanson who owns Dos Caminos in the Palazzo have had specific discussions about taking over management of the expanded food operations there. Emeril of TV Food Network fame owns two restaurants there: Delmonico in the Venetian and Table 10 in the Palazzo. Steve Hanson's company, B.R.Guest, owns many restaurants and hotels from New York to Phoenix and also Fiamma in the MGM Grand.

Luxe Life continues to monitor this developing story.

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