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Dame Dash's stake in Roc-a-Fella Records just got even more expensive after the scheduled auction was postponed amid new updates in two other legal cases.
According to a report Billboard published on Wednesday, August 28, a federal judge approved a motion to reschedule the U.S. Marshals Service's auction after the minimum price went up significantly. The price of Dash's shares was increased to help satisfy debts for the former music executive's unpaid taxes and child support. The auction was supposed to happen Thursday but was pushed back by three weeks to help determine who will get paid first.
The purpose of the auction was to help Dash pay the $823,000 judgment he owes to movie producer Josh Webber, who won a civil lawsuit against Dash in 2019. However, New York City and New York state weighed in with demands that the sale must also be used to pay off massive debts Dash owes. He reportedly racked up $8.7 million in back taxes that he has to pay down, and he owes the city $193,000 in unpaid child support.
Webber's attorney Chris Brown, who was tasked with dealing with potential bidders for the auction, said he reached a deal with New York City and New York state in a filing he made on Monday. As per the agreement, the original $1.2 million asking price for Dash's stake was increased to $3 million. New York City will receive the first payment of $193,000 to satisfy the child support followed by New York state, which will get $1.7 million to pay down Dash's back taxes. Webber will get his $823,000 payment afterward.
Following smaller payments to other civil litigants, the rest of the sum will go toward New York state to pay off the remainder of Dash's $7 million tax debt. Dash will still have other debts to deal with in the future. The city wants at least $700,000 from Dash for future child support payments and requested to pause all payouts until a judge rules on the issue.
Brown requested an extension for the sale to establish the pecking order for all funds. The auction will now happen on September 21. The sole item that's up for sale are the rights to JAY-Z's debut album Reasonable Doubt. Shawn Carter and the company's other co-founder Kareem "Biggs" Burke attempted to halt the sale, however, they were unsuccessful. Either way, Hov will earn the rights back in six years no matter who places the highest bid.