
From the February 2010 “People Who Matter” issue — on sale soon
Jay-Z walks into a gracious chamber at Manhattan’s Plaza Hotel. It’s the same room where, thousands of years ago, crown moldings were born. He walks in and already waiting for him is a tight litter of reporters with their recording de-vices and their notebooks. This is the sort of intimate press thing where the celebrity talks about whatever product he is endorsing, and they serve cold sandwiches and hummus dip. The product today is DJ Hero, a video game with which un-urban kids and guys in their mid-thirties with Costco memberships can scratch Jay-Z’s beats from the suburbanness of their own homes.
He sits down in his hard-backed chair and the reporters collect around him in a buttery little square. But Jay-Z doesn’t really sit. What he actually does is slalom down in his chair, real low like it’s a water slide. Seventy-three inches of all-black everything, laid out like a ramp. Black sunglasses, too, to block the hotel light.
“Hey, fuck shit,” he says, and he smiles so the whole room laughs.
He’s cool and tall and black. He’s witty and very cocky, but the cockiness is the unannoying kind you might admire.
He speaks differently, more warmly, to women than to men. He might be winking but you can never tell behind the sunglasses. At forty, he’s learned how to adjust for his audience, while the audience only notices that he’s pretty cool, and even kind of like them. An un-urban white guy says, “Oh, word,” after Jay-Z sublimely answers his question about an old-school gaming console. When Jay-Z charmingly says he’s so good at the game that he would destroy a female reporter at it, she laughs for too long.
A few years ago, President Clinton did the same thing. Jay was in the president’s ear at the Spotted Pig, the Manhattan restaurant he co-owns, and the president was doubled over, holding his belly, southern breathless, saying, “Stop. Stop it. You’re killing me!”
What’s different here is that Jay-Z is not Bruce Springsteen. Jay-Z is a half-dangerous rapper who grew up in the gat-happy projects of the Bedford-Stuyvesant section of Brooklyn. He sold crack on feral corners and shot his brother for stealing his ring. Badass, for real. So it’s a little weird, isn’t it, that he can make reporters and presidents alike giggle?
Two days from now, Jay-Z will perform the new New York anthem “Empire State of Mind” before a sellout crowd at Yankee Stadium. He will join U2 onstage in Berlin and get introduced by Bono to German screams as “the mayor of New York City.”
The very next morning, back in New York, Jay-Z will be introduced by the real mayor of New York as a “great New Yorker” to New York screams at the ticker-tape parade, before performing his anthem and riding atop one of the Yankees’ floats.
That same night, Jay-Z will enjoy an early dinner with A-Rod at Manhattan restaurant Nello’s before Maybaching down to Madison Square Garden to watch good friend and fellow superstar LeBron James crush the New York Knicks.
Around this time, the embattled governor of New York will call a reporter to confirm that Jay-Z has indeed been an inspiration during his recent rough patch. Governor Paterson says, “Jay tells me, ‘I’ve got your back.’ ”
But it’s the other thing the governor brings up that’s more interesting. Paterson says that every time he sees a Yankee hat, he thinks it’s Jay, “because he understands branding. I would daresay there are few people who understand it better.”
Ah, branding! It’s how you make a product so dearly iconic that people say the brand name when they mean the item itself, like “Kleenex” for “tissue.” And Jay-Z, here at the rich old Plaza Hotel dressed darkly and sitting horizontally, understands it really well. In fact, he understands it so damn well that he’s doing it differently than anyone ever has before, which is making him more famous than any hip-hop artist ever, and making him more money, too. But it’s the unintentional part of what he’s doing that’s changing America forever.

It wasn’t always like this, the rapper mogul sitting at the conference-colored table, imprinting his brand upon the masses. In his first office, when he was hooked up with thirsty, stop-at-nothing Harlem manager Damon Dash — the sort of man who tells you how hot his hot new things are until you either believe him or convince him that you do — roaches dog-paddled in the water cooler. They paid for everything in cash, rolls of fives and tens. It was amateur hour at the gangland Apollo. Unprofessional as hell but gangster slick. During one show Jay-Z tossed stacks of bills into the crowd.
But four years ago, Dash went the way of those bills. And now, today, on the amber floor of Jay’s clothing line, Rocawear, the lack of gangster is glaring. Lots of pretty black females padding around on high heels, professionally greeting visitors, professionally lauding their boss. This is corporate, carpeted America, bright and federated, a glass warren of office spaces with several small but cool concept showrooms and gallons of clear, roachless water.
Look up, left, and listen. Jay-Z’s vamping scowl is paraded everywhere, his presence vibrates from sound systems and is woven into the fabrics. You can smell Jay-Z in the rich notes of his new fragrance. A few blocks away, the CEO of the New Jersey Nets (of which Jay-Z owns a small stake) says he asks him for advice on how to better appeal to VIPs. More high-end stuff! says Jay. What kind? you ask the CEO. Just high-end stuff! he says. There is a hotel line with Jay’s name on it in the works. There are meetings about signing new talent, designing more shoes.
What Jay-Z actually does in those meetings is mythical, and irrelevant. Because what matters most deeply to every colleague, partner, and acolyte is the gift of saying that Jay-Z helped them arrive at a look, a sound, a smell, a decision. The jewel Jay-Z brings to every boardroom — the shining VVS diamond — is his name, his brand, his Jay-Z-ness, the glory of which is as unspecific as it is iconic.
Outside of the music and advertising industries, not many people know of the guy who cut and set the Jay-Z jewel. Damon Dash, in fact, is far better known. But you utter this other name in the music or ad worlds and there’s a queer little nod, an “Oh, yeah, Steve Stoute.” Not the fox that was spotted in the chicken coop, but the slippery one that picked the latch.
Short and bald with a body type that plugs his surname, Steve Stoute is the underfamous but ubiquitous guy in all the celebrity pictures. Steve Stoute and Jay-Z. Steve Stoute and P. Diddy. Steve Stoute and Mary J. Blige. Steve Stoute and Jay-Z again. Cock your head, wink, reach up and wrap your arm around your moneymaker, and … cheese!
He’s black and also liquid-shiny like the mimetic shape-shifting bad guy in Terminator 2. He’s real deal-eyed, and what first comes off as arrogance you realize later is sentience, with an extra side of arrogance. He’s wily as hell, plus hyper-protective and defensive of his products, both intellectual and carbon-based.
A former executive at Sony, where he first met Jay-Z over a game of Madden, Stoute eventually slithered over to the advertising world and worked his way up the ranks, learning how to sell street gear to white America. Authenticity is Stoute’s psalm. It is a religion that he sells best and preaches savagely. He knows that’s how you make it big in white corporate America without getting ripped for being a total sellout in the hood. I’ll take this money, I’ll shill Budweiser, but only because I always drank Budweiser.
“Jay-Z is the CEO of authenticity,” proclaims Stoute, who himself was willed an epithet by BusinessWeek — the McKinsey of Pop Culture. “Jay,” he says intensely, “was saying no to things he didn’t believe in when he first started, when he had no money. He never changed himself.”
But just as much as Stoute can lecture companies on how they can attract black and Latino consumers, he can also school black and Latino artists on how to appeal to corporate America. He is the swami of the crossover illusion — helping minority artists maintain their edge, their authenticity, while ensuring they appear unthreatening to the tennis-and-linen set.
Stoute’s worldview is both oracular and pretend color-blind. He talks a lot about the “tanning of America.” He means all those demographic boxes of black and white and Latino and eighteen to thirty-four, how the country has always been conveniently but ignorantly grouped by age and color into those debilitating provincial boxes, with no attention paid to the like mind-sets that bleed across them — the so-called tanning.
His bag is pairing hot musicians with the brands he claims make sense for them: Beyoncé for Tommy Hilfiger’s True Star fragrance, Chris Brown for Wrigley’s Doublemint gum. Stoute’s the guy responsible for taking a mediocre Justin Timberlake song and iconicizing it into the “I’m Lovin’ It” campaign.
But perhaps Stoute’s greatest success is the one that really tucked him and Jay in together: Reebok. Which was also Jay-Z’s first real endorsement gig, and his own line within a bigger line — the S. Carter collection. He and 50 Cent, rapping in loud shirts, selling a sneaker that hadn’t enjoyed any cultural relevance since the 1980s. It was Jay’s idea to get 50 in there but Stoute’s idea to make Reebok an urban brand. Why did Jay do Reebok and not Nike? Because, you see, the swami was hired by Reebok, and the swami had spoken. “It wasn’t ‘Jigga and Nike,’ because Jay-Z and I have a relationship that’s really strong,” he told a reporter at the time.
Like an endorsement-gathering snowball tumbling down the great white slopes, that relationship grew bigger and stronger with each partnership. Next came the HP campaign, in which Jay-Z is presented as the CEO of hip-hop, in which he is charming, funny, suited, and tie-clipped, discussing how he uses the computer to make his music, to manage his tour, his investments, the Nets stadium blueprints. He is powerful and iconic and corporate and safe — and he is headless, appearing from just the well-appointed neck down.
Then Budweiser, Heineken. Recently DJ Hero, Jaguar. Along the way, Damon Dash’s influence began to wave its tired arms from a lifeboat somewhere off the coast of Jay-Zion. And with each deal, another rough edge of Jay’s raw diamond was sanded down, as with each endorsement and appearance he was being furtively but surely groomed into a mainstream brand even a president could love. (Stoute likes telling the story of when Obama called Jay early in the presidential campaign and asked him what’s going on in America.)
Today, according to executives in the music industry and a sulky Dash, Stoute is pretty much involved in every aspect of Jay’s business. “Stoute was one of the first to realize that [African-Americans] had to diversify,” says one high-level executive familiar with the relationship. “And he’s taught that to Jay and is showing him how to stretch it across the spectrum of his brand.”
He has also taught Jay that friends invest in their friends. Together, they have founded and funded Stoute’s baby, Translation Advertising.
A little more on the sycophantic side, and like all Jay’s colleagues, Stoute loves relating stories about Jay’s insightful ideas. Stoute says that Jay, in his role as chief ideation officer at Translation, came up with some strategies for Johnson & Johnson. Baby oil, Jay suggested, should be marketed for its other uses, to remove makeup or to mix with suntan lotion so it glides on smoother. Those are its outside-the-box applications, and Jay-Z, with Stoute highlighting the blueprint, has learned to translate the niche into the mainstream.
And thickly those blueprints paper the walls of Jay-Z’s world. When asked how he approached Jay about starting up Translation Advertising, Stoute says that they’ve known each other for fourteen years and they’ve done a lot of things together. So, he says, a little irately, “It wasn’t an approach. It was just, ‘This is what we’re doing.’ ”
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