In what may be the richest in a string of recent deals with superstar musicians, Live Nation Inc. is close to a $150 million, 10-year deal with Jay-Z that would give the concert promoter a financial position in virtually every aspect of the rapper and entrepreneur's career, according to people familiar with the matter, the Wall Street Journal reports.
The contract also calls for Live Nation to make advance payments to Jay-Z -- whose real name is Shawn Carter -- of $10 million for each of three albums, along with $25 million toward concert performances, and other advance payments and promises to cover certain costs totaling $50 million. The company is also to pay $20 million for music publishing and licensing rights. Live Nation would underwrite other of Mr. Carter's business ventures in areas such as clothing, out of a fund of $25 million; in the past, Mr. Carter has been involved in clothing and nightclub businesses.
In all, the agreement appears to be broader than the one the company reached last year with Madonna, which kicked off Live Nation's recent deal-making spree. Irish rock band U2 also recently made a deal with similar, though not identical, components, and many major music stars have been rumored to be examining such arrangement. News of the deal with Jay-Z was first reported Wednesday on the Web site of the New York Times.
This is not the first time Jay-Z has been involved in a high-profile situation that purports to upend conventional ways of doing business in the music industry.
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