Diddy’s fortune in jeopardy after sex crime charges

Sean ‘Diddy’ Combs, the rapper, music producer, and entrepreneur, faces the potential collapse of his once vast fortune following his arrest in Manhattan and subsequent sex crime charges.

Diddy, whose wealth peaked at $740 million in 2019, was on the brink of becoming a billionaire. However, his ex-girlfriend Cassie’s allegations of sexual assault and physical abuse in November last year led to a series of lawsuits from at least nine others, severely impacting his financial standing.

Forbes now estimates his net worth at $400 million. He is embroiled in a significant legal battle to retain both his freedom and his remaining assets. The lawsuits, combined with the loss of revenue streams such as lucrative brand deals with Diageo, have made financing his defence increasingly challenging.

Recently, it was revealed that Diddy unsuccessfully attempted to use his $48 million Miami mansion as bail collateral. This mansion, purchased in 2003 for $14.5 million, is part of his extensive property portfolio. His bail proposal also included his mother’s $2 million Miami apartment, but a judge rejected it.

Diddy’s public persona in the 1990s was marked by extravagant spending and opulent displays of wealth. His record label, Bad Boy Records, propelled him to fame, with ventures into film, fashion, fragrances, and television further boosting his fortune. Over two decades, Diddy amassed nearly a billion dollars according to Forbes.

Among his significant purchases was a private jet, dubbed ‘Combs Air,’ for $60 million. His penchant for luxury extended to owning a revolving fleet of 20 sports cars, a 30-carat diamond pinky ring at the 2022 Oscars, and an art collection featuring Jean-Michel Basquiat and Keith Haring.

In 2014, Diddy bought a Los Angeles mansion for $39 million, one of many assets potentially at risk as he faces prison. Despite his claims of billionaire status, Forbes listed his peak fortune at $740 million in 2019, before controversies and business failures reduced it.

In June, Forbes adjusted his net worth to $400 million, a figure expected to decline further due to mounting legal fees. Regardless of the criminal case’s outcome, Diddy will likely face numerous civil suits from alleged victims, further draining his resources.

One significant revenue loss stems from his collapsed liquor ventures. Diddy’s partnership with Diageo, which included his vodka brand Ciroc, was highly profitable.

However, a lawsuit in May 2023 accusing Diageo of racial bias led to the conglomerate severing ties with him. Diageo contended that despite earning nearly a billion dollars over 15 years, Diddy only contributed $1,000 and failed to meet his commitments.

This partnership, which generated $66 million annually for Diddy, was a substantial part of his peak net worth. In June, following sexual assault allegations, he sold his 50 percent stake in Revolt TV for nearly $200 million, a fraction of its former value. His fashion line, Sean John, once generating over $400 million annually, has also suffered, with Macy’s discontinuing the brand.

Before his indictment in New York, Diddy listed his Los Angeles mansion for $61.5 million, seeking a $12.5 million profit. His attorney stated that Diddy anticipated the charges, indicating a strategic move to fund his legal battles.

Diddy now faces 10 civil lawsuits from alleged victims, in addition to the criminal charges in New York. These legal battles are costly, with one case already costing him $100 million. He must cover legal fees and potentially pay settlements and judgments.

In a recent case, Michigan prison inmate Derrick Lee Cardello-Smith was awarded $100 million by default after Diddy failed to respond or appear. Cardello-Smith claimed Diddy drugged and sexually assaulted him at a 1997 party in Detroit. Diddy’s attorney plans to appeal the judgment.