Damon Dash Claims He’s ‘Broke,’ Has Lost Money Investing In Himself For Years
Among his expenses: between $300,000 to $400,000 annually in child support.
“While I’m investing in something else, I might not be making the money and the profit, so I can’t afford to pay out what I was when I was having EBITA [earnings before interest, taxes, and amortization] of $8 million a year,” said on the Oct. 19 episode. “So you can’t judge how much I’m gonna pay out by how much I made 20 years ago.”
In recent years, Dash has launched a new enterprise without the initial capital. This situation was further complicated by the impact of the recession and the COVID-19 pandemic. As a result, he explained, he couldn’t afford to pay annual child support amounts of $300,000 to $400,000.
However, Dash emphasized that he wasn’t ashamed of this financial circumstance, describing himself as a “proud broke” and highlighting that he had tangible assets despite his temporary financial constraints.
According to Complex, what he was ordered to pay in child support to ex-wife Rachel Roy was calculated based on his then-earnings—including one of Roy’s fashion lines. That line is controlled by her, he said, though his ownership stake determined what he would have to pay.
According to the video, he suggested that it was only fair for his ex-wife to contribute to their children’s expenses since she was receiving the money he was contributing and was, in fact, in a better financial position. Dash noted his dedication to his investments and assets, even if it temporarily affected his ability to fulfill child support payments.
Dash has faced legal issues related to child support payments in the past. In November 2019, he was arrested for failing to meet child support obligations. At the time, he indicated financial hardship, with an inability to pay the required $2,400 as part of a lawsuit.