Live Nation Deal Could Make Jay-Z Bill Gates of Hip Hop
Jay-Z, 38, whose real name is Shawn Carter, has produced past ventures that included the Rocawear clothing line, which he sold last year for $204 million, and the chain of 40/40 nightclubs. His first venture with Live Nation is his current 28-date tour with Mary J. Blige. Live Nation is expected to contribute $5 million a year in overhead for five years, with another $25 million available to finance Jay-Z’s acquisitions or investments. The venture, to be called Roc Nation, will split profits with Live Nation. The overall package for Jay-Z also includes an upfront payment of $25 million, a general advance of $25 million that includes fees for his current tour, and advance payment of $10 million an album for a minimum of three albums during the deal’s 10-year term. A series of other payments adding up to about $20 million is included in exchange for certain publishing, licensing and other rights. These are speculations from sources close to the deals because Michael Cohl, Live Nation's chairman, does not discuss terms of the Jay-Z arrangement. (The New York Times)
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