Friday, April 4, 2008
JAY-Z SIGNS 150 MILLION DOLLAR DEAL
Shawn “Jay-Z” Carter is expected to sign a 10-year-deal, $150 million dollar “360” deal with Live Nation, that will include Roc Nation, a new entertainment venture for the rapper, The New York Times reports.
If the deal goes through, Jay-Z, 38, will add more than $60 million dollars in cash to his bottom line.
The rapper, who owes one more album to Def Jam, is currently on his biggest tour outing in three years, headlining the “Heart of the City” tour with Mary J. Blige, which was produced by livenation.com.
Live Nation envisions handling all aspects of Jay-Z’s entertainment, recording, tours and endorsement deals.
Under the terms of the deal, Jay-Z will receive an upfront payment of $25 million dollars, a general advance of $25 million dollars and an advance payment of $10 million dollars per album, for at least three albums.
Jay-Z will also receive a series of payments totaling about $20 million dollars for publishing, licensing and the rights to other endeavors produced by Roc Nation, as well as another $25 million dollars to target investments or acquisitions.
Finally, Live Nation will provide $5 million dollars a year to Roc Nation to support the new company’s overhead for the next five years.
Last Monday (March 31), Live Nation announced that they had signed rock legends U2 to a 12-year global contract to expand and run the band's global music enterprises including touring, merchandising, and the band's website, U2.com.
In October of 2007, the company announced a similar deal with Madonna.
Live Nation was created in 2005, when corporate giant Clear Channel Communications was split into three separate companies: Clear Channel Communications (radio), Clear Channel Outdoor (billboard advertising; outdoor display ads) and finally, Live Nation.
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