Connect with us

How They Lost Their Fortune

How Famed Rap Producer Scott Storch Blew $100 Million Fortune

Published

on

Scott Storch

Everyone loves a good rags-to-riches tale, but nothing is more intriguing than watching a Greek tragedy unfold before your very eyes. Famed hip-hop producer Scott Storch was once at the pinnacle of the rap game. Within a few short years proceeding his prime, the producer had hit rock bottom and lost his $100 million fortune (and nearly his mind) in the process.

For most fledgling hip-hop beat-makers, helping Dr. Dre to create the classic Chronic 2001 album would be the highlight of their career. But that was just the beginning for the then-mercurial keyboard player and wannabe rap producer from Philadelphia.

Hip-Hop Royalty

Storch created and played the famous piano hook on the worldwide Dr. Dre hit-single “Still Dre,” alongside other melodic hooks right across the critically acclaimed album. But he didn’t stop there. Over the next several years, the producer became hip-hop royalty and cemented his legacy as one of the greatest beat-makers of all time.

Over the course of his heyday between 2001 to 2007, Scott Storch commanded $100,000 per beat and was regarded as the hottest producer in the game. Artists lined up to give Storch checks when his gravy train was in full swing.

cocaine

He worked with the likes of Beyoncé, Christina Aguilera, Fat Joe, 50-Cent, Chris Brown, Erykah Badu, Nas, Snoop Dogg, Justin Timberlake, The Game, and many more. His signature piano sounds and melodies are still etched into the fabrics of 2000s hip-hop and helped the funky white boy amass over $100 million in royalties.

The problem was that this funky white boy began liking the white powder more than his Akai sampler and drum machines.

The Fallen Scott Storch Empire

In the early-2000s, Scott Storch lived in a stunning palatial sea-view mansion on Miami’s exclusive Palm Island at the peak of his career, which he referred to as the ‘Hit Factory.’ The house was worth $10 million at the time and was recently purchased by another rap music mogul, Birdman, for a cool $20 million.

At the pinnacle of his success, Storch was taking ballin’ to unprecedented levels and might have even helped to coin the slang phrase. He owned a $10 million 117-foot superyacht and a stunning collection of 15 rare and collectible cars, including a $740,000 Rolls-Royce Phantom convertible.

But as the white powder intake increased, so did Storch’s erratic decision-making as the producer simply kept buying lavish things he didn’t need.

Talking about his high times in a Details Magazine interview, Storch said:

“We’d be at the club [in Miami] and I’d decide to take everyone to Las Vegas [on my private jet]. Do more coke, f—k a bunch of girls. Be up for two days and decide at 11 in the morning to go buy a Rolls-Royce. I probably bought 10 cars when I was high.”

Rumored to have bedded a litany of A-list celebrities from the 2000s such as Paris Hilton, Kim Kardashian, and Lil Kim, Storch stopped making beats while still reportedly paying $1 million per month on maintaining his lifestyle. Storch also reportedly blew $30 million in just six-months on partying with some of the most famous celebrities in the world.

Life for the producer started to go downhill fast.

By 2009, it had become apparent that Scott Storch was having real problems. Not only was he hampered by drug usage, but also in regards to paying bills. His $100 million fortune was already gone and he was waking up in a $10 million mansion with no electricity because he couldn’t afford to pay the bill.

Storch had to reevaluate life and in recent years has turned his situation around. Returning to producing records and now off drugs, aside from his monumental marijuana consumption, Scott Storch is now in a happy place.

Even though he lost his $100 million fortune, he still lives a relatively wealthy life due to his ongoing royalty and publishing payments from his classic hits, so don’t shed any tears for Scotty, he’s probably not driving around in a wreck.

Featured image from Billboard.

Alan is a professional writer with a love for the economy and the financial markets. Originally from the UK but now living and working out in Asia, Alan loves writing about all aspects of financial freedom.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Billion Dollar Companies

Billionaire Eddie Lampert’s Bizarre Ideas Behind Sears’ Grand Closing

Published

on

Eddie Lampert

Eddie Lampert was in a position to revolutionize the US retail sector. A little over a decade ago, he was worth a touch more than Amazon’s Jeff Bezos, at nearly $4 billion. Now he’s still at the helm of Sears, which filed for bankruptcy protection on Monday of this week.

Some market commentators have speculated that an eroding middle class is to blame for Sears’ troubles, but Eddie Lampert is a far more probable culprit.

The modern Sears was created in 2005 when Eddie Lampert merged it with another American retail icon, Kmart. His move to sell off a bunch of real estate assets that Kmart controlled helped Mr. Lampert to gain billionaire status a few times over–and attracted a lot of attention from major players on Wall St.

In the wake of his inspired Kmart deal, Eddie Lampert was actually able to take over Sears. Kmart’s shares were riding high in 2005, and Eddie made his move.

It would be the beginning of a long slow grind downward, which Eddie Lampert’s ideas were almost wholly responsible for. The big problem is that he had no clue how to actually run a retail business, or sink money into staying competitive.

Dear Eddie Lampert, There’s a New Technology Called “the Internet”

At their cores, the business model that a company like Amazon and a company like Sears use aren’t wildly different. Both companies sell a whole bunch of consumer stuff to the public. The big divergence between how the two companies operate is how people buy from the retailer.

Amazon allows shoppers to use a website to make their purchases, while Sears used big stores that were expensive to operate, and required much higher levels of staffing. It should be clear by now that Mr. Lampert’s decision to shun spending on developing a web presence was probably one of the worst ideas in US retail, ever.

Instead of using Sears’ deep pockets and extensive network of stores to create a hybrid business model that embraced online shopping, Eddie Lampert decided to cut spending on keeping up the appearance of Sears’ stores. He also subdivided Sears Holdings into 30 different “silos,” and then made the leaders compete for dwindling resources within the company.

The ideas that Eddie brought to the table were certainly innovative, much in the same way that a massage given with chainsaws would be. The end result is also the same. Now the corporate entity that Eddie Lampert has been slowly bleeding for more than a decade is a total wreck.

People Don’t Want to Shop in Ruins

While Eddie was turning his back on online retail, his strategy to cut costs via removing remodeling budgets from Sears’ annual spending ensured that his company couldn’t compete with other big-box retailers like Walmart and Target. The idea that one can just abandon a store’s aesthetic upkeep, and leave its employees to attract clients based on their efforts is totally absurd.

Sears bankruptcy

Image from Shutterstock

Apparently, Eddie Lampert was known for running Sears from one of his two multi-million dollar mansions, which would explain why he was almost totally disconnected from what Sears’ locations were turning into. Not that Target or Walmart are exactly a treat for the senses, but they aren’t slowing degrading from a decade ago either.

Perhaps the most difficult thing to understand in all of this is how Eddie Lampert is still in charge of anything. He clearly has no idea how to keep a business competitive. In fact, he doesn’t seem to understand that retail stores need to be kept up to attract customers. Now Sears is a mockery, and if they emerge from bankruptcy one wonders what kind of market they could hope to serve.

As for Eddie Lampert, he still has some nice houses and a massive yacht that’s named after an Ayn Rand novel. The bumbling (barely) billionaire is still trying to make deals to sell off Sears’ assets, some of which were blocked due to the fact that he was behind the company trying to buy the assets from Sears.

With so much money gone, and so many terrible ideas, Mr. Lampert may be getting out of his mansions a bit more, and spending his days in litigation. It should be a nice change for him.

Featured image from Reuters.

Continue Reading
Advertisement

Cryptocurrency News

From CCN.com & Hacked.com

MoneyMakers is a part of:


Trending

Copyright © 2017 Hawkfish AS, Gamle Drammensvei 403D, 1383 Asker, Norway