Jay-Z was a suprise guest at Rock the Bells NYC before. He came out and performed "Black Republican" with Nas. New York always gets dope special guests. http://www.youtube.com/watch?v=_zcWxV2KEm0
As for what to do in NYC, you're prolly gonna be spending most of your time in Manhattan. The basics would be stuff like Central Park, Times Square, Chinatown, Late Night with Jimmy Fallon (and the Roots), Late Show With David Letterman, South Street Seaport, riding the Staten Island Ferry, Statue of Liberty, Metropolitan Museum of Art, Guggenheim, etc.
Fat Beats is at 406 Avenue of the Americas. I almost walked right by it when I went there. You walk in, up the stairs, and its on the second floor. It's near Washington Square Park so you could visit both of those. Since you like basketball, the Cage on West 4th Street is in the same vicinity as well.
Check out the stores along 5th Avenue. NBA Store is 666 5th Avenue and there's a ton of places all around that area.
Check to see what events are happening at Radio City Music Hall, Highline Ballroom, Nokia Theater, BB Kings on the dates you are in NYC.
You can goto a Yankees game. If Rock the Bells was about 2 weeks later you prolly would've been able to go to that Jay-Z + Eminem show at Yankee stadium.
I haven't done it before but there are a lot of tours you can go on. There's an NBC Studio tour, a tour of Madison Square Garden, etc. I also know there's a helicopter tour of the city but I'm not sure how much that costs.
It's fun just walking around and exploring the city...and you'll definitely want to buy a 7 day Metro card for the subways.
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