08.27.08
PALAZZO RECLAIMING 40/40 SPACE
Sands can’t knock Jay-Z’s hustle. (Via www.myspace.com/jayz)
Palazzo just announced that it will take over space currently used by 40/40 Club and will use that area and the surrounding environs for a large-scale sports book and a specialty restaurant. It was previously rumored that Jay-Z would be selling a 50 percent stake in the club for $44 million and that Sands would have the right to open 40/40 Clubs in London and throughout Europe. Under the terms of today’s deal — for an undisclosed amount — the sale is just for the lease of the Las Vegas location and not the naming rights, so the lounge will no longer continue to operate under the 40/40 name.
“The sale is a great business decision, we are delighted. We look forward to expanding the brand even further to Chicago and Tokyo,” Jay-Z said in a statement.
UPDATE: According to a Palazzo representative, this arrangement is exclusive to this location and has nothing to do with any other Sands locations.
Tags: 40/40 Club, palazzo
Wow, what a shocking development. Wouldn’t it be great if someone did a story delving into the real reason why Sands bought out the club? Financial woes? Rumors that the club’s clientèle was not welcome in the Palazzo? Anyone?
According to one former 40/40 employee I spoke to today, the club was only busy “one night a week.” I imagine the bottom line is the prime suspect here, but despite the rumors of Jay-Z selling off just a stake that had been out there, this arrangement came together on this angle fairly quickly and quietly. That’s impressive considering the club’s $20 million price tag.
Wow! I knew it was going to happen it was just a question of when. That place was doomed from the start. What a waste of 20 mil. I wonder how much of a loss Jay-Z and his other owners took. It shouldn’t make me happy but it does
that place needs better lights, the club is darker than Poetry
*rimshot*