How Def Jam Recordings Founder Russel Simmons Built a Multi-Million Dollar Empire and Allegedly Lost It All

What is Russel Simmons' current net worth?

Record executive and entrepreneur Russel Simmons has an estimated net worth of $10 million as of December 2023, according to Celebrity Net Worth. However, several reports continue to peg his net worth at $350 million, despite rumors of him being broke.

Simmons is best known for co-founding the record label Def Jam Recordings which signed artists like La Rock & Jazzy Jay, LL Cool J, the Beastie Boys, Oran "Juice" Jones, and Public Enemy, among others. He also created a lucrative business empire, co-created the HBO series “Def Jam Comedy," and helped produce “The Nutty Professor” starring Eddie Murphy.

Russel Simmons' sources of income

Russel Simmons’ rise to build a $300 million hip hop empire

Simmons earned his first significant fortune from Def Jam Recordings, which he co-founded alongside Rick Rubin in 1984. The label almost single-handedly popularized rap music in the mainstream with artists like LL Cool J and the Beastie Boys. Simmons sold half of his stake in Def Jam in the mid-90s to Polygram for $33 million.

Later, in 1999 Russell sold his remaining stake to Seagram for a whopping $130 million. By then, Rick Rubin had also sold his half of the company to Universal Music Group for $120 million. Russell then went on to establish several more businesses. His company, Rush Communications operated a concert promotions business and an artist management business with one of the biggest names in music under its umbrella.

Entrepreneurial ventures 

Simmons launched his clothing line, Phat Farm in 1992. The brand introduced hip-hop-inspired clothing into the mainstream fashion industry. It later launched sub-brands like Baby Phat, which was led by his then-wife, Kimora Lee Simmons. Simmons sold Phat Farm in 2004 for $140 million which is estimated to be worth $225 million in today's dollars.

In 2013, Simmons founded Unirush LLC, which provided pre-paid debit cards to low-income individuals. The company was sold to the Green Dot Corporation for $147 million in 2017. Further, Rush Communications went on to get involved in several other business ventures, including energy drink companies, websites, and book publishing. Simmons also published his self-help books, such as “Do You!” and “12 Laws to Access the Power in You to Achieve Happiness and Success.”

Career in entertainment

Simmons co-created the HBO television series, "Def Comedy Jam" in 1992 alongside Stan Lathan. The series went on to play a significant role in launching the careers of comedians like Martin Lawrence, Eddie Griffin, Chris Tucker, Kevin Hart, Dave Chappelle, and Katt Williams.

Russel Simmons' real estate assets

The longtime residence of Simmons was a Manhattan penthouse. He listed the property in 2012 for $11 million. He later lowered the price of the 7,500-square-foot property and ultimately accepted an undisclosed amount. His last asking price for the property was $5.5 million. Russel bought a $5.9 million home in Los Angeles in 2013. He sold the home in 2018 for $8.125 million.

Russel Simmons' social media following

Personal life: Russel Simmon’s fall from grace

Marriage and divorce settlement

In 1998, Simmons married model, Kimora Lee. Lee later claimed that the two met when she was 17 and Simmons was 35. The couple welcomed two daughters, Ming and Aoki Lee Simmons, before divorcing in 2008.

As per their divorce settlement, Simmons paid Kimora an undisclosed amount to separate their marital assets. He also provided funds for her to acquire an $8.5 million mansion in Beverly Hills. He was further ordered to pay $40,000 per month in child support, $20,000 per child. 

Sexual assault and rape allegations

In 2017, Simmons was accused of rape by a model named Keri Claussen Khalighi who alleged that he raped her in 1991 when she was 17 years old. Soon, writer Jenny Lumet also came forward and accused Simmons of raping her in 1991. After the allegations surfaced, Simmons stepped down from his leadership role in all of his businesses. Several companies, including HBO, distanced themselves from him.

Later in 2017, The Los Angeles Times published five separate accounts of women who had been the victim of sexual misconduct or sexual assault by Simmons. The story was furthered by The New York Times which published four accounts from new women with more rape allegations. A total of 13 women came forward with these allegations while Simmons denied everything. He sold all his assets in the country and relocated to Bali speculatively because the nation didn't have an extradition treaty with the U.S.

Simmons recently opened up about the allegations in an interview on the show “In Depth with Graham Bensinger.” Simmons continued to deny allegations but admitted to being “crude” and in “compromising situations” in the past. He also revealed that he had taken a total of nine polygraph tests which somewhat proved his innocence.

Lawsuits

Simmons and Kimora had invested in the beverage company Celsius, acquiring 3.9 million shares in the company. Half of the shares were set aside for their divorce settlement. However, when Kimora’s current husband, Tim Leissner, former banker of Goldman Sachs was arrested for his involvement in the 1MDB scandal, Kimora allegedly used all of those 3.9 million shares as collateral for his bail.

Later in 2019, Russell sued Leissner claiming that he transferred the shares to his account and the account of a shell company. Two years later, in 2021, Simmons also sued Kimora for fraud. The lawsuits still appear to be unresolved and they may be the cause of Simmon’s financial problems.

Current financial woes

In recent times, Simmons has taken a few jibes on his daughters on Instagram. As per a report, in June 2023, his daughter Aoki Simmons posted a series of screenshots of their Whatsapp conversations in which Simmons claimed to be broke.

He alleged that Kimora and Leissner stole $250 million of his fortune. If the allegations stand true, Simmons’ net worth has surely taken a huge hit.

Russel Simmons' awards

2011 GLAAD Media Awards: Excellence in Media Award

2009 Image Awards (NAACP): Vanguard Award

2013 PGA Awards: Visionary Award

FAQs

What is Russell Simmons most famous for?

Russel Simmons is best known for being the co-founder of Def Jam Recordings, which started the hip-hop revolution by promoting stars like Public Enemy, the Beastie Boys,  Run-D.M.C., and LL Cool J.

How old was Kimora when she dated Russell?

Russell Simmons and Kimora Lee Simmons met in 1992 when she was 17 and he was 35.

What is Russell Simmons' net worth?

Russel Simmons has an estimated net worth of $10 million as of December 2023, according to Celebrity Net Worth. However, several reports continue to peg his net worth at $350 million, despite rumors of him being broke.