Jay-Z is reportedly close to finalizing a $150 million deal with concert promoter Live Nation to launch a venture called Roc Nation. This coming after Jay-Z stepped down from longtime label Def Jam as president when his contract expired at the end of 2007.
As part of the approximately $150 million partnership, to be called Roc Nation, Live Nation would finance future start-up ventures by Jay-Z, which could include his own label, music publishing, and artist consulting and managing. The deal should be finalized later this week according to the New York Times. 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 deal also reportedly calls for Live Nation to make advance payments to Jay-Z of $10 million for a minimum of three albums spanning the 10-year term, a general advance of $25 million that includes fees for his current tour with Mary J. Blige, and an upfront payment of $25 million. A series of other payments adding up to about $20 million is included in exchange for certain publishing, licensing and other rights.
“It’s really about trying to invest in the future, trying to invest in maybe coming up with a new model, because going in hard making records with artists and throwing those records into a system that’s flawed is not exciting for me.” said Jay-Z.
This puts an end to speculations of an all-digital record label with Apple, among other rumors. Live Nation, known primarily for major rock & country tours have recently inked deals with both U2 and Madonna.
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