Jay-Z Joins Live Nation

A powerhouse was declared on March 30 connecting Live Nation and rapper Jay-Z in a 150 million dollar contract. After announcing the departure from his former record label, Def Jam, Jay-Z has struck a deal with Live Nation which will encompass the financing of Jay-Z’s own entertainment venture, Roc Nation, along with live shows and tours expanding a scope of 10 years. Roc Nation will be the umbrella for all of Jay-Z’s outside projects including his own label, music publishing, and A&R. This news comes shortly after two other multi-million dollar contracts were established with U2 and Madonna; a growing trend as labels, promoters, advertisers, and performers scramble to secure deals as CD sales continue in a downward plunge.
Unlike Madonna and U2, Jay-Z has experienced a drop in sales after his latest CD release, American Gangster only sold roughly one million copies in comparison to his previous CD, The Black Album which sold well over three million. However, Jay-Z has managed to expand his empire with the growth of his Rocawear clothing line, which was sold last year for 204 million, as well as a successful chain of 40/40 nightclubs. Jay-Z has by no means fallen victim to the plummeting trend of CD sales, but has capitalized on his ability as an entrepreneurial musical force, so much so that it was only a matter of time before Jay-Z made his next corporate move. In this deal, Live Nation is expected to contribute 5 million a year for the next five years, with another twenty-five million provided for Jay-Z’s investment in Roc Nation. Other aspects of the agreement include an upfront payment of twenty-five million, another twenty-five million for his current tour, and an advance payment of 10 million per album for the following three albums. Another twenty million will be paid for certain publishing and licensing aspects. Jay-Z is hoping that through this deal, he will be able to reach the customer through a variety of different tactics. Jay-Z explained his position by stating; “Everyone’s trying to figure it out. I want to be on the front lines in that fight.”

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