Snoop Dogg is a modest man—10 percent of Colt 45 is all he needs.
The famed rapper is suing American brewer Pabst Brewing Company, owner of the Colt 45 malt liquor brand, for ten percent of the brand's value. (Tweet This)
A phantom-equity clause in the contract Snoop signed with Pabst when he was hired as a Colt 45 brand ambassador in 2011 entitled him to a tenth of Colt 45's net sales price in the event the brewing company was sold before 2016, he claims in his lawsuit.
It just so happens that is exactly what happened.
In 2014, beer entrepreneur Eugene Kashper and TSG Consumer Partners, a San Francisco-based private equity firm, bought Pabst and its subsidiaries, including Colt 45, for a reported $700 million, according to court documents. Those documents do not reveal, however, how much 10 percent of Colt 45's net sale price might be.
The lawsuit claims Snoop Dogg was originally hired by the company to promote "Blast by Colt 45," a juice flavored malt beverage, and was to be paid an up-front fee of $250,000 and quarterly royalty payments over his three-year contract. The Colt 45 stake Snoop is seeking, however, likely exceeds what he was originally paid.
The lawsuit claims Pabst told the rapper the sale did not trigger the clause that would entitle him to a piece of the $700 million deal, though Pabst is denying that it ever heard from Snoop.
"Pabst Brewing Company has been under new ownership and new management since November 2014. We have not been contacted by Snoop Dogg or his representatives about this issue. We are investigating the matter and would be happy to talk to Snoop or his representatives to try to get to the bottom of this," the company told CNBC.
Before Pabst Blue Ribbon was bought in 2014, it was purchased for $250 million in 2010 and relocated its headquarters to Los Angeles shortly thereafter. Its subsidiary, Colt 45, has been a leading brand of malt liquors since the '80s.