Jon Bream
Star Tribune
Published September 5, 1992

Imagine Michael Jackson, Madonna and Prince sitting around backstage playing a variation of an old childhood game: My Contract Is Bigger Than Yours.

Prince wins. The Minnesota rocker's eye-opening $100 million contract with Warner Bros. Records, announced Thursday, is the biggest of three recent music megadeals and reportedly the biggest ever signed with a single entertainer. Earlier this year, Jackson signed with Sony Music and Madonna signed with Warner Bros., each for about $60 million.

Topping the other superstars is a big deal in these big deals. Where 20 years ago the status symbol for show-biz stars was a billboard on Sunset Blvd. in Hollywood, nowadays big-shot entertainers negotiate with such huge multinational conglomerates as Sony and Time Warner for status deals involving not only recording but also movies, television, video, books, clothing and sometimes even their fragrance lines.

The Prince, Madonna and Jackson contracts are substantially different, so it's difficult to make apples-to-apples comparisons. Jackson's deal involves six albums, an entertainment complex and potential for movies. Madonna's includes six albums and her own entertainment company, including a record label and movie company.

Prince's gives him $10 million for each of six albums, and three joint ventures with Warner Bros.: a music-publishing business, a new record label for singles (tentative name: Love) and more than $20 million to make his Paisley Park Records a joint venture with Warner. In his one-upmanship move, the Chanhassen-based rock star has also been named a vice president of Warner Bros. Records, and will get a West Coast office.

On the surface, Prince's royalty rate appears to be twice that of Jackson's and Madonna's $5 million per album - and three times his previous percentage. These fees are actually an advance on sales, like a loan, which would have to be paid back to the record label if sales were low (actually, deducted from royalties on older albums). If Prince's next album, due Oct. 20, doesn't sell 5 million copies, he won't receive a $10 million advance for his following album. And, unlike Jackson and Madonna, he didn't get a fee just for signing the contract.

"It looks like we're giving him the farm. It's a generous deal, but it's a realistic deal as well," said Bob Merlis, Warner Bros. vice president of publicity. "If his sales continue the way they have for `Diamonds and Pearls' (his current album, which has sold 5.8 million copies), we're all going to make money from the deal. If they go up appreciably, obviously he'll make a lot more money." Merlis would not confirm the amount of the contract, but Prince's managers released some details in a news release Thursday.

The big question: Is Prince worth more money to Warner Bros. than Madonna?

"Absolutely no," said Steve Hochman, who covers the music industry for the Los Angeles Times. "She keeps herself in public demand. I expect her to walk into Warner Bros. Chairman Mo Ostin's office today and say, `You're giving him how much?'"

In terms of bankability, Prince doesn't rate with Madonna or Jackson. He simply doesn't sell as many records.

Since 1983, Madonna has made eight albums with combined worldwide sales of 76 million, or an average of 9.5 million each. Her bestseller is 1986's "True Blue," with 17 million. Since 1979, the prolific Prince has released an album a year for Warner Bros. These 13 albums have sold nearly 53 million, or an average of 4.1 million each; his bestseller is 1984's "Purple Rain," 14.7 million. Two of Jackson's four solo albums, "Thriller" and "Bad," have combined sales of 73 million.

Prince's sales have been inconsistent, especially in the United States, whereas Madonna has never sold fewer than 5 million copies of any recording. Prince 's "Lovesexy" in 1988 sold less than 1.7 million.

But Warner Bros. didn't give Prince a megadeal based on his sales potential alone. The key difference between Prince and Madonna or Jackson is behind-the-scenes talent. Neither Madonna nor Jackson regularly writes songs for other artists. Prince has written several Top 10 hits for others, including "Nothing Compares 2 U" for Sinead O'Connor and "Manic Monday" for the Bangles. Prince has also produced recordings for many artists, including Patti LaBelle, Mavis Staples and George Clinton.

Warner Bros.' signing of Prince carries much cachet in the industry. It brings another prestigious artist to the Warner family, which, starting with its film studios, has prided itself on having the top creative names in the business under contract, from screenwriters to musical conductors to stars and directors. And Prince's stature in the music industry is without equal. He is widely regarded as today's leading genius for his ability to play a variety of instruments, to write prolifically and arrange songs, and to produce hit recordings.

Warner has many ways of making money off of Prince. Soundtracks are one. He wrote, produced and recorded some songs for "Batman," one of the six top movies ever in box-office receipts, and his "Batman" album sold 3.4 million copies. His behind-the-scenes potential would seem to be unlimited.

The new deal doesn't give any key to his prospects as a film star. Unlike the Madonna and Jackson contracts, Prince's does not address movies. He starred in one hit, 1984's "Purple Rain," and two subsequent bombs, "Under the Cherry Moon" and "Graffiti Bridge," both of which he also directed. Granted, Madonna bombed in "Shanghai Surprise," but "Desperately Seeking Susan," her concert documentary "Truth or Dare" and the current "A League of Their Own" have attracted sizable audiences. It was reported that Jackson's contract might be worth as much as $1 billion if he succeeds on film, video and other nonmusic projects.

Prince's attorneys are still free to negotiate elsewhere on deals for movies, video, TV, books and merchandise. Or maybe the star is simply singing the refrain to one of his recent singles, "Money Don't Matter 2 Night."

Who cares?
This is older than the org.

VERY interesting to read that now. My how times have changed!

things haven't changed that much.. his ability to tour and still have folks rework his catalog will go along way toward providing a tidy sum to mr. nelson...

I'm not an expert on that contract, but surely he must have known that not many of his albums sold more than 5 million copies. Only PR and D&P had sold that many by 1992. He was also 34, quite old for a bankable pop star. He must have known that just by age alone his sales would begin to slow - no matter how good the music was. is a great album, but did he really expect a double album with a confusing story line and "My Name Is Prince" as the lead single to sell more than Diamonds & Pearls, which was only a year old?

I remember how excited Prince was when he signed that contract.Too bad things didn't work out as planned.But Bob Merlis was wrong when he said that it was a "realistic deal".The success of 'Diamonds and Pearls' was a rare occurence for Prince.Did they really expect each subsequent album to sell more than 5 million copies?

DavidEye said:

damn crazy deal for WB to sign.

TheFrog said:

Indeed.There was no way that Prince could meet those requirements.