music business | Jay Z to sign $150 million deal!

Jay Z to sign $150 million deal!

New york rapper Jay Z is to set to sign one of the largest music contracts ever for $150 million with concert promoters Live Nation.

The deal unlike most other record company deals as Live nation will preside over all areas of Jay Z’s activities where as most record labels only handle specific areas such as recording sales. Other acts who have signed similar deals include Madonna and U2.

Live Nation will initially give Jay Z a payment of $25 million and will help to finance the New Yorkers other business interests, taking a percentage of the insuing profits.

Jay Z is currently signed to Def Jam and is due to release one more studio album before he can leave. The rapper was president of Def Jam for three years before stepping down after failing to agree a larger contract with the labels parent company Universal.

This deal is a result of the fall in sales of music which has been felt all over the world and in all genres, companies now are looking at securing a share of all artist revenues which could turn out to be more lucrative then recorded sales alone, for example Jay Z sold his clothing company Rocawear for $204 million but his latest album sales were only 1 million.

Jay Z’s first undertaking will be a 28 day tour with Soul and R&B queen Mary J Blige from then on Live Nation will integrate the marketing for all of Jay Z’s activities.

Get ready for Jay Z the brand!