How much did 50 cents deserve from its famous vitamin water confirmation/equity business?

On May 24, 2000, a 25-year-old rapper named Curti's “50 Cent” Jackson was shot nine times in the point blank area, while he was sitting in front of his grandmother's house in the back seat of a car. As if by a miracle, he survived. But as if Columbia Records were just a few weeks later, as if it were just a centimeter after death if he weren't traumatic enough, and dropped him out of her label just a few weeks later and protected his debut album.

It could have been the end of his music career before she even started. Instead, 50 cents rebuilt its physical and mental strength and became the number one rapper in the world within a few years. His debut album would sell over 15 million copies worldwide and consolidate its place in music history.

The Breakout album that has changed everything

“Get Rich or Die Tryin”, published on March 8, 2003, made his debut under Shady/Aftermath/Interscope Records. The album was powered by the Monster Single “In Da Club”. He climbed number one in the Billboard charts and stayed there for nine weeks in a row. Between March and July it sold over 5 million copies in the United States alone and more than 15 million worldwide.

But not everyone celebrated. Just a few months before the publication, the manager of 50 cents, Chris Lighty, and his company Violator Management had agreed to expire half of the music gains of the 1950s to complete his record business. It was a desperate step that was necessary because every large label had previously rejected 50 due to its violent and controversial call. The amplifier still kept a 15% management fee, but the victim lit a fire under Lighty to find new sources of income.

The strategy for equity-over-salary

The errors of ten million license fees motivated against the persecution of confirmation transactions that were associated with a serious upward trend. Instead of deciding on flat -rate fees, they pursued business that included large advance payments and equity investments. When the fame of the 1950s exploded, also his business Empire: a clothing line, G-Unit Records, a ringtone company, a video game, a film studio and more.

One of the biggest offers came from an unexpected place: Vitamin water.

A sip that has changed everything

At that time, Rohan Oza, an experienced drink manager who had recently left Coca-Cola, worked as a brand manager for a company called Glacéau. They had a fighting sports drink called vitamin water. One day, Oza 50 cents appeared in a Reebok commercial – and at the end of the advertisement 50 took a sip of vitamin water. Here is the ad:

https://www.youtube.com/watch?v=msl-z1sgkiu

What seemed spontaneously was anything but. 50 had been introduced to the drink by his personal trainer and really loved it. However, it is even more important that Chris Lighty and Rohan Oza were long -term business known. Years earlier, Lighty had arranged a tribe called Quest to appear in Oza's legendary “thirst” strike campaign-the first to use black hip-hop artists to address urban consumers directly.

Lighty knew that Oza would see the ad and draw attention. He did it.

After Rohan Oza saw the commercial, he arranged 50 cents and Chris Lighty to get to the headquarters of vitamin water. By chance, the headquarters of vitamin water in Queens, ny, was just a few blocks from the spot where 50 cents grew up. When the meeting was completed, 50 cents agreed to be vitamin Water's first celebrity endorser in exchange for A Fee of 5 million US dollars and an equity share in the company.

Chris Lighty and 50 cents (photo by Johnny Nunez/Wireimage)

Introduction of the Formula 50

At the time of the deal, vitamin water worked on a new taste that contained 50% of the recommended daily allowance of the FDA of vitamins. Of course it was called “Formula 50”. With 50 cents as the face of the brand, the marketing machine entered high equipment. Advertisements, posters, bus wraps and radio spots appear everywhere.

It worked. Sales exploded. Between 2005 and 2007, the vitamin water rose from $ $ $ 355 million to $ 700 million. By 2007, the brand checked 30% of the US sports water market.

The Coca-Cola Buyout of $ 4.1 billion

On May 25, 2007, Coca-Cola-Rohan Oza's former employer-Glacéau acquired 4.1 billion US dollars in cash. According to a version of the legend (which was able to spread happily for years), 50 cents had 10% vitamin water. This would have translated into a payday of around 410 million US dollars for Mr. Jackson. Unfortunately it is not exactly. It is believed that the real number is nearby 2.5%What would have translated into the area $ 102 million Input tax. He would have paid around 36 million US dollars of federal taxes and state and state taxes of 11 million US dollars for a total of 47 million US dollars. That would be about approximately about the after-tax revenue of 50 cents from vitamin water sales 55 million dollars.

Maybe not as amazing as the lengthy $ 400 million/$ 200 million after taxes, but still an extremely impressive payday.

The lesson

The vitamin water deal of 50 cents is still one of the best known and most profitable contracts in entertainment. Everything because he supported a product that he really loved – and had the business foresight to take equity instead of cash.

Become rich or try dying? 50 cents did both – and a few others.