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Jay-Z's New Puma Role Could Create Conflict Of Interest With Roc Nation

Jay-Z was once certified with the NBPA, but he's not listed in a current directory and is no longer certifiedGETTY IMAGES

Jay-Z accepting the role of Creative Dir for Puma Basketball is "possibly putting the hip-hop mogul in a precarious position of competing loyalties" and the "appearance of a conflict of interest," according to Rick Maese of the WASHINGTON POST. Jay-Z "represents athletes from all walks" at Roc Nation, but it is the basketball side of his business that "could potentially create problems in his new position with Puma." Many are wondering whether Jay-Z will have "trouble wearing two hats and asking what kind of potential conflicts he'll have to navigate serving dual roles." While Jay-Z was certified with the NBPA in the past, he is "not listed in a current directory and is no longer certified." However, he is "still the head of Roc Nation, and has certified agents working under him." Some have also "wondered this week whether Puma's new hire could create obstacles for Roc Nation." Basketball agents are "not allowed to have 'a financial interest in any professional basketball team or in any other business venture that would create an actual conflict of interest or the appearance of a conflict of interest.'" Puma Global Dir of Brand & Marketing Adam Petrick on Monday initially said that Jay-Z would "play a role in recruiting players to Puma, though he later said he was mistaken and Jay-Z's formal duties, at least on paper, apparently will be focused more on design and branding." If that is the "extent of his duties, Jay-Z's work for Puma might not raise many eyebrows" (WASHINGTON POST, 6/20).

CULTURE CLUB: Former NBAer Baron Davis said Puma is "trying to be a part of the culture." Davis: "What better way than to pick the godfather of culture in Jay-Z?" ESPN's Byron Scott gave "kudos" to Puma for going "after somebody of that caliber and to understand what he means in the community to all these kids that have been basketball fans for so many years" ("The Jump," ESPN, 6/19). ESPN's Bomani Jones said Puma's recent athlete and celebrity signings -- including top NBA Draft prospects Deandre Ayton, Marvin Bagley III and Zhaire Smith -- are a "hell of a splash for a company that hadn't signed a male basketball player in 20 years." ESPN's Pablo Torre said signing Jay-Z is the "best they can do, because so much of the battle for one of these companies is just for us to know that they exist so we're talking about them." Torre: "That is a success, attention is a success. But the golden touch of Jay-Z is an open question because we thought the Brooklyn Nets were going to be revolutionized because of Jay-Z's association." Jones: "Jay-Z represents a certain level of cool. I just don't know if he's that guy for 2018" ("High Noon," ESPN, 6/19). FS1's Chris Broussard said Jay-Z is "not going to resurrect Puma." Broussard: "Jay-Z was even bigger when he was with Reebok. He had his own shoe with Reebok and it didn't do anything on the court or off the court" ("Speak For Yourself," FS1, 6/19). 

FAMILIAR STRATEGY: In N.Y., Bromwich & Draper write Puma is "looking to distinguish itself from competitors like Nike, which still dominates the sneaker marketplace, by elevating the importance of off-court style in its basketball shoes and apparel." Puma's partnership with Jay-Z has "signaled its commitment to a familiar strategy: letting big-name celebrities steer its brand," which Puma has done previously with Solange Knowles and Rihanna in '13 and '14, respectively. Puma also has worked with celebs like Kylie Jenner, Selena Gomez, The Weeknd, Cara Delevingne and Big Sean. Petrick said that Puma's relationship with Rihanna "helped the company understand how best to work with high-profile collaborators: Give them the ball and get out of the way" (N.Y. TIMES, 6/20). FS1's Jim Jackson: "If I'm bringing in Jay-Z and I want to connect the hip-hop world with the NBA, it's not going to be so much, 'I'm selling the shoe,' more so than, 'I'm selling the lifestyle and the brand of Puma,' and now you got it all encompassed" ("Speak For Yourself," FS1, 6/19). 

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