Jay Z Discussing 150 Million Deal With Live Nation
Posted on April 3, 2008 by Jamie Slaughter
Jay-Z is once again looking to expand his massive empire in the music industry by confirming a huge $150 million deal with Live Nation. The New York Times has since reported that this is the single most lucrative deal offered to anyone by Live Nation, and the dot's on the I's and crossed on the T's of the contract are expected to be put in place by the end of this week. The Hip Hop star will leave Def Jam Records to begin Roc Nation, which will host a number of Jay-Z's business endeavours. The deal will include financial backing for his entertainment venture, records/tours for the following ten years with profits being divided between both parties.
Live Nation is confident that the deal will boost their own reputation, and will allow them to cash in on not only music, but merchandising connected with the rapper. "I've turned into the Rolling Stones of hip-hop," Jay-Z said in an interview with the Times. Live Nation will also fund the creation of Roc Nation, which will hold his own label, management, talent consultation and music publishing. They will also inject $5 million per year for five years, on top of a $25 million investment to fund Jay-Z's future signings to the label.
There will be an initial payment of $25 million, an advance of $25 million which will fund his current tour, and a $10 million payment for every album for a minimum of three albums. Finally, in exchange for certain rights and licensing policies, there will be a $20 million payment.
Jay-Z has described the deal as a way "to reach the consumer in so many different ways right now. Everyone's trying to figure it out. I want to be on the front lines in that fight."
"In a way I want to operate like an indie band," he said. "Play the music on tour instead of relying on radio. Hopefully we'll get some hits out of there and radio will pick it up, but we won't make it with that in mind."
Live Nation has made the following statement declaring why they selected Jay-Z as their pioneer, as they suggest their own visions are in a parallel with the way Jay-Z thinks. "What he's done has kind of mirrored what we want to do and where we think we're going.", Michael Cohl, chairman of Live Nation commented.