Hip-hop mogul/rapper Jay-Z is close to finalizing a $150 million deal with concert promotions giant Live Nation, marking one of the biggest music contracts in history.
The deal includes financing for his own entertainment venture, in addition to recordings and tours for the next decade. The deal is the first of its kind for Live Nation.
In December, Jay-Z announced that he would not renew his contract as president and chief executive officer of Def Jam Recordings after he and Def Jam's parent company, Universal Music Group, could not come to terms. Jay-Z held the positions for three years.
As an artist, he has one more album under his Def Jam contract, which is rumored to be entitled "Imagine That".
His first deal with Live Nation is his current 28-date "Heart of the City" tour with Mary J. Blige, his biggest live tour in more than three years. After the tour ends, Live Nation will handle the bulk of marketing of all Jay-Z’s entertainment endeavors, including recordings, tours and endorsements.
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. The venture, to be called Roc Nation, will split profits with Live Nation.
The overall package for Jay-Z also includes an upfront payment of $25 million, an 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-Z has entered into several lucrative business ventures over the years. He sold his Rocawear clothing line last year for $204 million, expanded his 40/40 Club chain to Las Vegas in December, and is a partial owner in the NBA's New Jersey Nets.
In his personal life, Jay-Z reportedly married longtime girlfriend Beyonce' in his Tribeca apartment on Friday. The wedding was small, having just 30 guests. The two have been dating since 2002.
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