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The Forbes Five: Hip-Hop’s Wealthiest Artists 2018

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Last June, when Jay-Z and Beyoncé welcomed twins to their family, they did what many couples do in the wake of a new arrival–move to a bigger home–on quite an epic scale. Over the next few months, they shelled out $26 million for an East Hampton mansion and scooped up an $88 million Bel Air estate, adding 21,000 square feet per newborn. That’s the sort of thing you can do when one partner is a pop demigod and the other is the richest rapper on the planet.

Jay-Z upped his net worth from $810 million to $900 million over the past year, seizing hip-hop’s cash crown for the first time since Forbes started counting back in 2011. The Brooklyn-born mogul’s jump is due mostly to the rising value of his interests in Armand de Brignac champagne and D’Ussé cognac, on top of nine-figure ownership stakes in his Roc Nation empire and Tidal streaming service.

“We always complain about, ‘We don’t own this, we don’t own that.’ … Here he is, this man who owns that,” superproducer Swizz Beatz told me in an interview for my book 3 Kings: Diddy, Dr. Dre, Jay-Z and Hip-Hop’s Multibillion-Dollar Rise. “The sky is not the limit: it’s just a view.”

Jay-Z, Diddy and Dre are not only the wealthiest hip-hop acts on the planet, but the richest American musicians of any genre. Longtime Forbes Five champ Diddy ranks No. 2 this year despite increasing his fortune slightly in the past 12 months; tepid trends in the vodka and cable TV sectors have affected his interests in Ciroc and Revolt, but heady growth at DeLeón tequila, his joint venture with beverage giant Diageo–and massive annual earnings totals in recent years–have kept his net worth trending in the right direction.

READ MORE: Kendrick Lamar: The Conscious Capitalist

Dre ranks third with $770 million, creeping upward thanks to the market trends boosting his nine-figure windfall from Apple’s $3 billion buyout of Beats in 2014. The superproducer is also in line to receive a slug of Apple stock this summer worth well over $100 million; depending on the tech giant’s share price at the time, he could leapfrog Diddy and Jay-Z when that happens.

After the top three, there’s a long drop before the fourth and fifth names on the list: Drake and Eminem, tied at an even $100 million apiece. The youngest impresario of the bunch, 31-year-old Drake has earned more than $250 million since 2010, before taxes and spending; an equity stake in Virginia Black whiskey and pricey estates in Toronto, Canada, and Hidden Hills, California, pad his holdings. His inclusion on the Forbes Five represents yet another career goal achieved.

“If I’m not on your list this year, I’d be gravely disappointed,” he told Forbes back in 2013. “That’s pretty much my objective every year … other than making good music.”

READ MORE: How DJ Khaled Rolls: Hip-Hop’s Boldest Star Shows Off His Major Keys

Eminem isn’t known as a businessman like some of the other names on this list, but he’s still the best-selling rapper of all time and moved more albums in the U.S. during the 2000s than any act in any genre. Fresh off new album Revival, he makes his Forbes Five debut as former listmember Birdman–Drake’s Cash Money Records boss–slips below the $100 million mark in the wake of some apparent liquidity issues.

To compile the Forbes Five rankings, we follow the same procedures used to calculate our list of the world’s billionaires (our annual update arrives Tuesday): valuing major assets, poring over financial documents, and speaking with analysts, attorneys, managers, other industry players and, in some cases, the moguls themselves.

So who will be the first hip-hop star to reach the billion-dollar mark? Trends in the spirits world could continue to play a key role for Jay-Z and Diddy. After the furious rise of vodka in the first part of this decade, fueled largely by flavored variants like those of Ciroc, the market has shifted towards cognac, whiskey and tequila.

“D’Ussé fits right in there,” says Eric Schmidt, Director of Alcohol Research at Beverage Marketing Corporation. “I think DeLeón is poised for growth … it could one day be the next Patrón, but it’s a long road.”

Jay-Z, meanwhile, shouldn’t be slacking off anytime soon: though he and Beyoncé bought their East Hampton abode outright, according to public records, their $88 million Bel Air mansion comes with a $52.8 million mortgage. – Written by 

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Entertainment

Harry And Meghan Need $3 Million-Plus To Be ‘Financially Independent.’ Here’s How They May Do It.

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Prince Harry and Meghan Markle would like to “become financially independent,” they announced Wednesday—and that may have to happen sooner rather than later, as Prince Charles, Harry’s father, is reportedly threatening to pull the millions he gives them each year. How they plan to replace those funds remains a subject of feverish palace intrigue about which the couple remains mum.

But what is clear: By stepping away from their duties, they likely are no longer prohibited from earning income the way senior members of the royal family are, clearing the way for them to take real jobs. What will those be? And how much will they actually need to make in order to live in the style to which they’ve become accustomed?

Annual Costs: Roughly $3 Million A Year (Not Including Renovations)

It’s hard to pinpoint the exact amount that Prince Harry and Markle earn from the various royal mechanisms each year—and a spokesperson for the Sussexes did not respond to questions about on the couple’s finances—but 95% of their annual income comes from Prince Charles, Harry’s father, via the Duchy of Cornwall. A trust that consists of 131,000 acres of real estate and more than $450 million in commercial assets within the United Kingdom, the Duchy of Cornwall was established in 1337 to support the direct heir to the throne.

That estate paid a combined $6.5 million (or £5.1 million) to the Duke and Duchess of Cambridge (Prince William and Kate Middleton) and to Prince Harry and Markle in the fiscal year ending March 2019, according to the latest financial report. The funding for the princes and their families didn’t change much from 2018 to 2019, although both reports were prior to the birth of the Sussex couple’s son, Archie. Let’s assume the brothers split that income from the Duchy (though William and Kate, with three children, are likely taking a bit more). While the Duke and Duchess did not immediately surrender this income, reports surfaced Friday that Charles is threatening to cut them off completely.

The Duke and Duchess of Sussex did announce that they will “no longer receive funding through the Sovereign Grant,” which we know covers an additional 5% of their income, and used for their official duties. It covers official business such as international tours, travel to official events and the upkeep of their homes and offices, and comes from about 25% of the revenue from the Crown Estate (£85.9 million or $112.2 million for the 2020–2021 fiscal year), a portfolio of investments controlled by the monarchy—though not by the royal family or the government—and includes properties across the United Kingdom. (For example, the Queen herself does not own Buckingham Palace.) 

In 2018 and 2019, the couple used money from the Sovereign Grant to travel across the world, from Fiji to South Africa, on official royal business. While the royal annual reports don’t detail how much the Sussex’s travels cost in total, their trip to Fiji and Tonga cost $105,000 (£81,000), according to the latest Sovereign Grant financial report. (While it may seem that travel costs could go down as the couple steps back from royal duties, they say they plan to split time between the British Isles and North America, which will lead to new expenses.) 

Based on what we know, we estimate the total of the couple’s funds from the Duchy and Sovereign Grants to be a (very conservative) $3 million—again, not including security costs. 

And that’s not including the cost of their home and renovations: The Sovereign Grant covered last year’s $3.12 million (£2.4 million) refurbishment of the Frogmore Cottage, the four-bedroom plus nursery home in Windsor where the couple lives when they are in England. The home’s maintenance began before the couple decided to move in and was covered by the Queen, under existing commitments to maintain the upkeep of certain historical buildings, while the couple privately paid for the furniture and decor. Even though the house is property of the Queen, the couple plans to continue using it as their official residence when they are in the United Kingdom—meaning less rent to pay. 

None of this takes into account the cost of their security, which is reportedly covered by the Metropolitan Police, and which the family is expected to continue to accept.  

With all of these expenses and their easy access to funds facing a precarious future, the questions remains of how, exactly, the couple plan to earn the millions that their lifestyle demands. 

What Could Make A Royal Gig: Books, Speeches, SponCon?

They do have some money to live off of: Thanks to her seven-year stint on the television drama Suits, Forbes estimates that Markle has a net worth of about $2.2 million. Prince Harry has money of his own as well, as he and his brother received the bulk of Princess Diana’s $31.5 million estate upon her death in 1997.  

But it is likely that they will join other royals, like Harry’s cousins Princess Beatrice and Princess Eugenie, and actually take paying gigs (the former works in finance, while the latter works at an art gallery). While no announcements have been made as to how exactly the couple plans to make money, it would seem natural that they take up work in the entertainment and media fields. 

Markle has said that she was giving up acting for good once she joined the royal family; maybe this is an opportunity for her to change her mind. At the height of her acting career, she commanded up to $85,000 per episode of SuitsForbes estimates, a number that would likely shoot up thanks to her royal title if she decided to return to the screen.

But it is more likely that the pair will take up shop on the speaking and book circuit. High-profile speakers like former president and first lady Bill and Hillary Clinton can earn up to six figures per speech to corporations and universities, while even B-list celebrities like Jersey Shore’s Nicole “Snooki” Polizzi could command $32,000 per oration during the height of her fame. 

A hit book has the potential to earn the couple even more. A seven-figure advance is typical for celebrities like Amy Schumer and politicians like Elizabeth Warren, with some high-profile authors earning even more. In 2017, former president and first lady Barack and Michelle Obama signed a record-breaking $65 million book deal with Penguin Random House, while Hillary Clinton scored a $14 million advance for Hard Choices in 2014, and Bruce Springsteen got $10 million for 2016’s Born to Run. 

There’s also talk that the couple, which favors new media and direct lines of communication with their fans, may even start a podcast, which could be a lucrative endeavor. Last year, advertising spend on podcasts reached an estimated $680 million, according to a PricewaterhouseCoopers report, and that number is supposed to shoot up to $1 billion by next year.

And in the unlikely chance they’re ever interested in following the footsteps of the royal family of Calabasas, the Duke and Duchess could surely earn an enormous sum doing sponsored content on their widely popular (10.4 million followers) Instagram account. Celebrities like Kim Kardashian West and her half-sister Kylie Jenner earn up to $500,000 per post.

Of course, the details of the couple’s future, and their future earnings, are all in flux, as Buckingham Palace’s curt statement on the matter made clear. And the wording of their own statement made sure that they can work toward financial independence on their own time. One thing is for certain: It doesn’t seem as if the Duke and Duchess will be hurting for cash anytime soon.

By  Madeline Berg, Reporter, Forbes Staff and Deniz Çam , Wealth Reporter, Forbes Staff.

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Arts

Forbes Africa’s Best Photographs In 2019

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[Compiled by Motlabana Monnakgotla, Gypseenia Lion and Karen Mwendera]

Image 1:

Kabelo Mpofu, an entrepreneur, took over his mother’s shop in Meadowlands, in the South African township of Soweto. He is hopeful of making the family business a success despite big retail stores opening up in the townships and swallowing up the corner groceries.

Image 2:

Africa is the youngest continent in the world. Every year, South Africa observes June as Youth Month, honoring the anniversary of the Soweto Uprising on June 16. In this image, the country’s sprawling township of Soweto comes alive with youth dancing in the winter weather to local and international music at the Soweto International Jazz Festival, an annual confluence of history, art and culture.

Image 3:

Women hold up placards against gender-based violence during a ‘Shutdown Sandton’ campaign; this after a spate of brutal rape and killings in South Africa.

Image 4:

Car dealerships were among the businesses set alight in Johannesburg’s Jules Street, during the spate of xenophobia attacks in South Africa in August this year. The spark that fueled the raging fire began in Pretoria, the country’s capital, when a taxi driver was shot dead by a foreign national who was selling drugs to a youngster in the central business district.

Image 5:

Sibusiso Dlamini, the co-founder of Soweto Ink, works on one of his regular clients at his tattoo parlor founded in 2014 with his long-time friend, Ndumiso Ramate. In 2019, Soweto Ink held the fourth annual tattoo convention, and for the first time in partnership with BET Africa, to break tattoo taboos in Africa.

Image 6:

Mmusi Maimane, the former leader of South Africa’s opposition party, Democratic Alliance, is about to cast his vote in front of local and international media houses who had wrestled to get the perfect shot in his hometown in Dobsonville, Soweto, during the elections in South Africa in 2019.

Image 7:

The brother of South African journalist, Shiraaz Mohamed, begs for government intervention after Mohamed was kidnapped in Syria on January 2017 by a group of armed men. The group demanded more than $500,000 for his freedom.

Image 8:

South African President Cyril Ramaphosa with his body guards at the Sandton Convention Centre in Johannesburg, South Africa, where the three-day South Africa Investment Conference was held in November.

Image 9:

In a world that’s embracing new technology, inspiration is being found in bug behavior. The hard-bodied dung beetle is now key to robotics research, in Africa too. Astounded by this discovery early this year is Marcus Byrne, a researcher at the University of the Witwatersrand in Johannesburg who has been studying dung beetles for over 20 years. He holds up a metallic replica of a dung beetle in his hand in his office at the university.

Image 10: 

Mzimhlophe Hostel, a hostel among many others in Soweto, erupted with service delivery protests prior to the elections in South Africa. In the same vicinity, an informal settlement was also allegedly set on fire. Brothers Mduduzi (32) and Kwenzi Gwala (22), pictured, had arrived in Johannesburg looking for employment. They sold African beer, but their shack was set alight while they were still at church. They lost all their stock and possessions.

Image 11: 

A thrift market in the heart of Johannesburg’s central business district, not too far from a busy taxi rank, known for its pavement robberies. Despite the crimes, thousands of small entrepreneurs trade in this raucous market every day.

Image 12:

ANC, DA and EFF supporters dancing and chanting outside the Hitekani Primary School in Chiawelo, Soweto, South Africa, as they await South African President Cyril Ramaphosa to cast his vote in his former primary school. 

Image 13:

Tenants in the discarded Vannin Court in Johannesburg look on from their balconies as jubilation erupts on the ground floor.

Image 14:

Vestine Nyiravesabimana makes money weaving intricate baskets made of grass to feed her nine children in Kigali, Rwanda.

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Life

Colors For Mandela

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The world of comic books is dominated by stories from the West. Two South African brothers are helping reshape that narrative with a central character inspired by the iconic hero.

Nelson Mandela had his own following at the recent Comic Con Africa convention at the end of September in Johannesburg.

At the center of all the organized chaos at the event at the Gallagher Convention Centre attended by 71,000 visitors over four days was a comic book bearing the late South African president’s name created by brothers Phemelo, 28, and Omphile Dibodu, 25.

The comic book, Young Nelson, features an African superhero, for readers in the continent and beyond.

Co-founders of Rainbow Nations Comics, a black-owned comic book and publishing company established in 2018, the Dibodu brothers were born and bred in Rustenburg, known as ‘platinum city’, in South Africa’s North West province.

Far from their hometown, the duo were in the big city for the event, showcasing their creations to an adept audience – people dressed as superheroes, cyborgs and zombies – who crowded around their stand and were as colorful as the comic books they were thumbing through.

READ MORE: Marvel Money: How Six Avengers Made $340 Million Last Year

“Wow, that looks cool, who is Young Nelson?” asked a curious bystander.

Phemelo was ready with his answers even as his brother assisted with more queries. 

“Young Nelson is a proudly South African black comic book inspired by the late Nelson Mandela,” responded Phemelo.

In front of him, on the table, a large poster of Young Nelson, featuring a young black male with the South African flag over his shoulders and a gold-colored map of Africa emblazoned on his shirt.

This day saw the launch of the very first issue of Young Nelson titled An Act of Kindness, for R20 ($1.3) a copy.

Phemelo, the writer, and Omphile, the illustrator, say they were inspired by Mandela and some of their own life experiences growing up.

“I think I wanted to pay tribute to the old man in a way that it would hopefully inspire others to look at him in the way that many South Africans see him,” says Phemelo to FORBES AFRICA.

In the story, ‘Young Nelson’ gets his nickname when he volunteers at a local boxing gym. The people watching him witness his skills and ability to solve problems, so they equate him to the young Mandela, who was famously a boxer in his youth.

“[The lead character] doesn’t like the nickname at first but once he sees the significance of it and his heroics, how they are taken up by the community to represent who they are, he takes the name and rolls with it and that’s his superhero name going forward with the series,” Phemelo explains.

READ MORE: How Disney’s Investment In Entertainment Brands Like Marvel and Star Wars Will Power The Launch Of Its New Streaming Service

Young Nelson’s real name in the comic is actually ‘Thabo Mo Afrika’, inspired by South African president Thabo Mbeki, who succeeded Mandela.

“ ‘Mo Afrika’ is a generic surname [which] translated into English is ‘an African’. So I wanted to see every African seeing themselves in Young Nelson,” Phemelo adds.

The young writer’s plan is to take his product to bigger markets, but for now, the African comic industry is a tough market to capture for lack of any funding.

“Imagine getting paid for what you are doing. That would [make a] big difference. Once people realize that their art can be compensated, more of us will actually start creating content the world would want to start reading,” he says.

Bill Masuku, a speaker at the Comic Con event and who is also a digital artist, shares the same sentiments.

“In Zimbabwe, where I am from, it is pretty grassroots. Everyone is self-publishing and if you don’t really have a passion for it, the book won’t come out,” says Masuku, who has been a part of the African comic industry for over three years. He is the founder of Enigma Comix Africa, and creator of Razor-Man and Captain South Africa.

“As much as new creatives are coming out every day, what really makes the comic book industry is distribution. And seeing that [Young Nelson] has such widespread potential really makes me hopeful for where we are going,” says Masuku.

For comic books to thrive on the continent, they need a big financial push from publishers, distributors or investors, unlike any other medium.

The Dibodu brothers were fortunate to have been sponsored by the Rustenburg Herald, a weekly local newspaper in Rustenburg.

“The problem with creating by yourself is that you can only create at a certain rate and you do burn out. So you find people who have been making comics who have three or four issues out and it’s easy to forget about them as a consumer,” he adds.

Globally, platforms like Weekly Shōnen Jump in Japan make it easy for Japanese creatives to publish their work as the comic book and manga industry is thriving there, making it one of the best-selling magazines. Weekly Shōnen Jump has sold over 7.5 billion copies since 1968.

But the African comic industry has a long way to go.

Kugali, a digital platform founded by three entrepreneurs and friends from Nigeria and Uganda, is designed to help people find and share the best African narratives and comics. It is an entertainment company that focuses on telling stories inspired by Africans, offering much-needed exposure to young creatives such as Masuku and the Dibodu brothers. For now, the reception the Dibodus are receiving give them some hope.

“It’s been awesome and inspirational. I didn’t know people felt the same way as me. It’s amazing when people are [reading] the story of the character and people are saying ‘you know what, that’s what we need’,” says Phemelo. At the end of Comic Con, they managed to sell over 300 copies of Young Nelson.

“People are catching onto the culture. I think it might even grow bigger than the American industry only because I think we are a very artistic community… Whether you look at the hieroglyphics in Egypt or the cave paintings by the bushmen in South Africa, we draw,” he says.

He also plans to sell his comics to local book stores in the country.

The team is currently working on their next creation – a black African female superhero called Imbokodo.

“We are looking for new creators we can partner with and create our own justice league, our own Avengers, to actually have young kids in South Africa look at their heroes the same way Americans look at their heroes in the Comic Cons to come.”

Young Nelson is a refreshing reminder that not all heroes wear capes.

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