Russell Simmons Net Worth

What is Russell Simmons' net worth and salary?

Russell Simmons is an American record executive and entrepreneur who has a net worth of $10 million. If you were expecting Russell Simmons' net worth to be higher, in June 2023, he claimed to be "literally broke" in a message he sent to his daughter. Much more info on these financial issues in the next section below.

Russell Simmons is probably best known for co-founding Def Jam Recordings, the record label that would popularize many early rap artists. Russell co-founded the label with Rick Rubin in 1984. Mr. Rubin had recently started a record label from his college dorm room, and the two acquaintances decided to form a partnership. They soon signed T La Rock & Jazzy Jay, LL Cool J, the Beastie Boys, Slayer, Oran "Juice" Jones, and Public Enemy, among others, to their label.

Russell Simmons later sold his portion of Def Jam Recordings to Universal Music Group for $120 million. He continued to remain influential in Def Jam's subsidiary labels and subsequently launched three very popular clothing lines: Phat Farm, Argyleculture, and American Classics. Through his company, Rush Communications, Inc., he also controls a production company for film and another for television, a management company, a magazine, and an advertising agency. He also owns a large portion of the hip-hop-focused website Global Grind.

Although this entrepreneur's career has been undoubtedly successful, his life has also been marred by controversy. Serious allegations of sexual misconduct and even sexual assault have plagued his public reputation in recent years. At least one of the allegations includes rape, though he has denied all charges. These allegations surfaced in the wake of the #MeToo movement, a social movement against sexual harassment and assault. Multiple women accused Simmons of sexual misconduct, including rape, spanning over three decades. The alleged incidents were said to have occurred from the mid-1980s through to the 2010s. Some of the women who came forward included publicist Kelly Cutrone, screenwriter Jenny Lumet, and model Keri Claussen Khalighi. Simmons consistently denied all accusations, stating that all his relations had been consensual. The allegations led to significant personal and professional repercussions for Simmons, including stepping down from his businesses. HBO also removed his name from the "All Def Comedy" series, and a planned book was canceled. Despite his denials, these accusations have cast a long shadow over Simmons's career. In recent years, Simmons has lived primarily outside the United States while denying the accusations against him. His story is one of enormous cultural impact, financial success, and lasting controversy.

Is Russell Simmons Broke?

In June 2023, Russell's daughter Aoki Simmons posted a series of screenshotted WhatsApp conversations with her father to Instagram, several of which seemed to imply that he was "broke," had lost an enormous amount of money to his ex-wife, and was generally experiencing some sort of financial problems. If true, this would be an unbelievable financial fall from grace for a person who was at one time a titan of several industries with a net worth of several hundred million dollars. Certainly, Russell's financial situation has not been helped by his sexual misconduct allegations, which have rendered him somewhat of a pariah in various business and entertainment circles. We went into much greater detail on Russell Simmons' supposed financial issues in this article, but here are some of the major points:

According to the screenshots shared by Aoki Simmons, Russell appears to say he was "literally broke"… and that ex-wife Kimora Lee Simmons had "stolen my money and the love of my kids…"

Later, he claimed Kimora and her current husband, former Goldman Sachs banker Tim Leissner, had taken:

"…what equals $250 million of my money… It's OBVIOUSLY MINE OBVIOUSLY…"

To these allegations, Aoki replied:

"She DID NOT STEAL IT… YOU LOST IT… understand?! YOU LOST IT with your actions."

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Early Life

Russell Simmons was born in the Queens borough of New York on October 4th, 1957. He was raised in Maryland by his father, a public school administrator, and his mother, a parks administrator. Simmons has stated that during his upbringing, drug use was widespread in his neighborhood. He became involved in the criminal lifestyle that surrounded the drug trade from a young age and took drugs himself. Although his father tried to encourage Russell to find honest, legitimate jobs, the boy was more interested in participating in gang culture. This continued until one of his fellow gang members was murdered.

Russell Simmons decided that he should take school more seriously and enrolled in the City College of New York in Harlem. While he was studying sociology, Russell connected with several pioneers of the hip-hop movement, including Kurt Walker and Eddie Cheeba. Upon hearing the latter perform, Russell knew that he would focus on making hip-hop popular throughout his life.

Founding Def Jam Recordings

Russell Simmons first broke into the industry by managing Kurtis Blow (born Kurtis Walker). After being rejected by nearly every major label, Simmons secured a historic deal for Blow with Mercury Records—the first time a major label signed a rapper. Following the success of the single "Christmas Rappin," which sold over 400,000 copies, Simmons dropped out of college to focus on his management firm, Rush Productions. While his brother Joseph "Rev Run" Simmons and his group Run-DMC achieved massive success on Profile Records under Russell's management, Simmons wanted a label of his own.

In 1984, Simmons partnered with Rick Rubin, who had already released "It's Yours" under his new Def Jam Recordings imprint from his NYU dorm room. Together, they signed a 16-year-old LL Cool J, whose debut single "I Need a Beat" became an underground sensation. The momentum led to a landmark distribution deal with Columbia Records (a division of CBS) in 1985. Def Jam soon exploded into the mainstream with the Beastie Boys' "Licensed to Ill," which became the first rap album to top the Billboard charts and eventually sold over 10 million copies.

While the late 80s saw the label grow into a powerhouse with acts like Public Enemy and Slick Rick, the corporate structure was shifting behind the scenes. In 1988, the same year Rick Rubin departed to form his own label, the Sony Corporation purchased CBS Records (Def Jam's distributor) for $2 billion.

By 1992, despite its cultural influence, Def Jam was in a financial crisis. The label was reportedly $15 million in debt to Sony due to massive overhead and a few underperforming projects. Facing the possibility of total collapse, Russell Simmons was forced to renegotiate. To settle the debt and secure a multi-million dollar bailout to keep the doors open, Sony converted its role from distributor to owner, taking a 50% equity stake in Def Jam.

In 1994, PolyGram purchased Sony's 50% stake in Def Jam for $33 million. While co-founder Rick Rubin had already departed the company in 1988 to launch American Recordings, Russell Simmons remained the face of the brand. The final windfall came in 1999, after PolyGram merged into Universal Music Group; Simmons sold his remaining interest in the label to UMG for a staggering $130 million—the equivalent of roughly $240 million today.

(TIBRINA HOBSON/AFP via Getty Images)

Expanding the Brand

After Def Jam, Simmons continued building businesses that bridged hip-hop and mainstream commerce. In 1992, he launched Phat Farm, a clothing line that translated urban streetwear into a national fashion brand. Phat Farm grew rapidly, becoming a staple in department stores and urban fashion outlets.

He also created Def Comedy Jam, an HBO series that provided a platform for rising Black comedians, including Martin Lawrence, Bernie Mac, and Chris Tucker. The show became a cultural phenomenon and expanded Simmons' influence into television and live entertainment.

Over time, Simmons invested in or founded additional ventures, including Argyleculture, Baby Phat, and Rush Communications. He authored books focused on entrepreneurship, spirituality, and personal development, positioning himself as both a business leader and lifestyle guru.r.

Clothing Lines

Russell Simmons started three clothing lines: Phat Farm, ArgyleCulture, and Tantris. Phat Farm became immensely popular as a result of the growing hip-hop movement and was sold to Kenwood in 2004 for $140 million. ArgyleCulture was aimed at millennial men, while Tantris focused on yoga apparel.

Further Business Ventures

In 2013, Russell Simmons founded Unirush LLC, a company that provided prepaid debit cards to low-income individuals. In 2017, this company was sold to the Green Dot Corporation for $147 million. Rush Communications became involved in a vast range of other business ventures, including energy drink companies, websites, and book publishing. Russell used the latter to publish various self-help books, such as "Do You!" and "12 Laws to Access the Power in You to Achieve Happiness and Success."

In 1999, Russell Simmons became a vegan. He is outspoken about matters related to animal rights and supports various groups that fight to end animal suffering. In 2015, he released a book called "The Happy Vegan: A Guide to Living a Long, Healthy, and Successful Life."

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Sexual Assault Allegations

In 2017, multiple women publicly accused Simmons of sexual assault or misconduct, with allegations spanning several decades. The accusations emerged during the broader #MeToo movement and included claims from former colleagues and associates.

Simmons denied the allegations, stating that any relationships he had were consensual. Nonetheless, he stepped down from his business roles and resigned from companies he founded. The controversy significantly altered his public standing and business influence.

Several civil lawsuits were filed in subsequent years. Some cases were dismissed, while others remained in litigation or were resolved privately. The allegations marked a turning point in Simmons' career, shifting the focus from his entrepreneurial accomplishments to questions surrounding his personal conduct.

In the end, a total of 13 women came forward with these allegations. Russell Simmons denied everything, sold his assets, and relocated to Bali. At least one of his accusers suggested that Simmons chose Bali because the nation doesn't have an extradition treaty with the United States.

Kimora Lee Marriage and Divorce Settlement

Russell Simmons married Kimora Lee in 1998. They actually met when she was 17, and he was 35. The couple had two daughters together before divorcing in 2008.

According to the terms of their divorce settlement, Russell paid Kimora an undisclosed settlement to separate their marital assets. Soon after divorcing, he produced funds for her to acquire an $8.5 million Beverly Hills mansion. He was also ordered to pay Kimora $40,000 per month in child support, $20,000 per child.

Real Estate

In 2012, Russell listed his longtime Manhattan penthouse for $11 million. He lowered the price of the 7,500-square-foot property a number of times before finally accepting an undisclosed amount. Immediately prior to the sale, he had been asking $5.5 million.

In 2013, Russell paid $5.9 million for a home in Los Angeles. He sold this home in August 2018 for $8.125 million.

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