In what could be one of the biggest music deals in history, hip- hop mogul Jay-Z is continuing to expand on his already impressive professional empire, reportedly on the verge of signing a landmark deal with Live Nation worth an estimated $150 million.

According to the New York Times, the new the deal is the most lucrative one offered by Live Nation and is set to be finalized by week's end. The deal will see the rapper/entrepreneur leaving Def Jam to start Roc Nation, a parent company which will house several of Jay's business ventures.

The terms will include financing for his own entertainment venture, in addition to recordings and touring for the next ten years and will see Jigga splitting profits with Live Nation. The deal is aiming to position Live Nation to compete directly with major labels in the areas of record distribution as well as concert tickets and market merchandise.

"I've turned into the Rolling Stones of hip-hop," Jay-Z said in a interview with the Times.

As part of the arrangement, Live Nation would finance the start-up of Roc Nation which are expected to include his own label, music publishing, and talent consulting and managing. 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, according to people in the music industry briefed on the agreement.

The one of a kind deal 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.

Jay himself sees 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," he said.

"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 chairman Michael Cohl says that he has high hopes for the new deal, even though many industry figures are doubting the potential success due to the industry's current climate.

"What he's done has kind of mirrored what we want to do and where we think we're going."



http://www.sohh.com/artic....php/14439

looks like Madonna really started something.Every artist is gonna flock to LiveNation now,lol.

i wont be surprised if within 2 months prince signs with live nation for a record 200 million deal.or if not with live nation maybe aeg concert

I bet Michael Jackson is gonna seek a deal like this.

Why?

Graycap23 said:

Are you asking why would LiveNation pay that much to get Jay-Z?

SoulAlive said:

Yes?

I think Jay Z has proven to be a better business man than both michael and prince put together.

prettymansson said:

yup

banks said:

I agree.These days,you really have to be a good businessman (or woman) to survive in the music biz.It's not just about talent anymore.

I have some thoughts on this that I cannot post here. I'll just just this sounds.....funny, in a non-funny kind of way.

didn't he retire from recording music for like 3 times already?



good for him to negotiate such a good deal though, that's a lot
of money.

banks said:

Well the business model that he, or should i say that Puffy created is the one that works for people like Jay, Kanye, and 50 cent for the most part. As Puffy said recently "i dont make shit off music" and i 100% beleive that of him and 50 and Jay to a certain extent, all the money is in their endorsements, its almost like the lifestyle of an athelete, thats why their is a fine line between musicians, and media stars.

I could have sworn that Jay-Z was like president (or figurehead) of Def Jam. I'm out of the loop!

That's quite a deal. Even if Live Nation turns out to be insolvent in a couple of years -- from all these ridiculous deals -- he stands to get a lot of upfront money.

i didnt realize he was a big draw when it comes to tours

IstenSzek said:

maybe he's broke from all that retiring...

VinnyM27 said:

He stepped down recently.

SoulAlive said:

It was never confirmed that Madonna took the deal. There was only mention of a possible deal and then nothing else. Publicity? maybe

4bjb said:

Where have you been? Madonna signed a new $120 million deal with LiveNation.It was all over the media several months ago.Her upcoming album 'Hard Candy' is the last album of her current Warner Bros. contract.

4bjb said:

Madonna Deal Done: Material Mom Signs With Live Nation
10/16/07, 1:20 pm EST



The rumors are true: Madonna is leaving her longtime label Warner Bros. and signing an unprecedented deal with concert-giant Live Nation for an undisclosed amount of money (rumors had pegged it at $120 million over the past several months). “The paradigm in the music business has shifted and as an artist and a businesswoman, I have to move with that shift,” Madonna said in a statement. “For the first time in my career, the way that my music can reach my fans is unlimited. I’ve never wanted to think in a limited way and with this new partnership, the possibilities are endless. Who knows how my albums will be distributed in the future? That’s what’s exciting about this deal — everything is possible. Live Nation has offered me a true partnership and after twenty-five years in the business, I feel that I deserve that.”

As reported earlier, the ten-year deal will encompass new studio releases, touring, merchandising, a takeover of the Madonna fan club and Web site, DVD releases, TV and film projects, sponsorships and licensing agreements regarding the Madonna name and brand. Live Nation is simultaneously announcing the formation of its Artist Nation division, which will launch with Madonna as its flagship star and oversee her projects. Artist Nation will consist of divisions that handle recorded music, merchandise (physical and online sales), concert ticketing, live-music distribution, and sponsorships and marketing. Live Nation is referring to Artist Nation as “redefining the music industry with a unified rights model,” and the set-up does seek to cover every single aspect of a recording and touring artists’ career.

In her statement, Madonna praised Warner Bros. and confirmed she has a new LP coming out on the label next year: “I appreciate their hard work and value the many relationships I have developed over the years with the label in the U.S. and around the world. I have an album coming out with them next year and I’m excited about it. We still have work to do together.”

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banks said:

I think that's a smart deal for Madonna,especially since she tours so much these days.Touring is where the real money is,so why shouldn't she align herself with LiveNation? It'll be interesting to see how LiveNation promotes,markets and distributes her albums in the future.I'm sure they have the same "think outside the box" mentality that she has.

Sounds like some one has some $ that needs 2 be Tided.

ehuffnsd said:

He's currently on tour with Mary J.Blige,if I'm not mistaken.Not sure how the tour is doing.