Jay-Z to Ink $150 Million Deal with Live Nation

 •  XXL Magazine  •  by XXL Staff  •  70 Comments

Later on this week, Jay-Z is expected to finalize a deal with concert production company Live Nation said to be worth an estimated $150 million. According to the New York Times, the deal will include financing for a new record label called Roc Nation, and will cover three albums and any tours Jay agrees to over the next 10 years. The company will provide Jay with $5 million per year over the next five years for his label and talent management business, with another $25 million available for further investments or acquisitions. Jay will also receive an upfront payment of $25 million, and another $25 million advance that will include payment for the Heart of the City Tour that Jay is currently on with Mary J. Blige. He will also reportedly get $10 million advances on each of three albums he has agreed to record with Live Nation over the next ten years, plus another $20 million in return for certain publishing and licensing rights. The partnership closely resembles similar agreements that Live Nation recently entered into with U2 and Madonna. With the music industry in disarray over illegal downloads and low record sales, the company has made an aggressive effort in recent years to offer artists a new model for earning money in the industry. “Everyone’s trying to figure it out,” Jay told the Times. “I want to be on the front lines in that fight.” Live Nation will split profits from the Roc Nation venture and also plans on merging marketing efforts from Jay’s albums, concerts and merchandising. Critics of the company’s model believe it will be hard for them to turn a profit on such an expensive deal. The company’s stock price actually fell after they announced their $120 millon deal with Madonna. But Michael Cohl, chairman of Live Nation, says the deal does not depend on increased record sales to be successful. “He could be doing more tours and doing great,” Cohl explained to the Times. “There could be endorsements and sponsorships.” He added, “The whole is what’s important.”

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  • J

    First Bitch!

    • B-EZ

      SWEEEEEEEEEEEEEEEEEEEEET

    • vacat757

      I mean really the game stil needs artists like JAY who have substance in there lyrics not this popcorn rap thats out. rappin about the bling is OVERRATED

  • Chest Rockwell

    Kids thats rich!

  • J

    Dis nigga is a beast though!

  • major

    JAY-Z=PAID

    • I REIGN SUPREME

      CO-SIGN

      • http://www.xxlblocktalk.com/maxprofit Max Profit

        Nuff Said!

  • big skiz

    i said it b4 and ill say it again> jay is a business genius. much props. all the hustlers they love it, just to see one of us make it. haters keep doin your thing.
    p.s. t.i. stands for top informant snitch bitch. hahaha FUQ ALL YALL

    • I REIGN SUPREME

      That T.I. Statement is FUNNY!!!

  • Worley

    Why can’t this dude finance his own sh*t? I know most people don’t use their own money for business, but then they complain when they feel a hand in their back pocket. Invest in yourself. You are your best product.

    • Deez Nutz

      u sound like an idiot…if someone offers you a $150million you azz best to take it…get your g.e.d. dumbazz

      • Worley

        Sorry fella. I’m working on a PhD. Perhaps what I’m saying is a bit over your head. They did not offer him 150M, they invested 150M which means Jay will split profits.

        • Justice

          A PhD? Man please, and your surfing “XXL MAg.com” right. Whatever, if someone “Invest” 150 million, that is their money, they are taking the risk, you are reaping the benefits. All he has to do is produce albums from himself or other artist and tour.(what he’s already doing by the way)Econ 250. Go study.

        • whatever

          ….right, which means Jay will split profits off an investment someone else makes. ie: he takes on no risk…where’s the beef?

        • TRUTHFROMDABOOT

          @Justice
          How ignorant can people be, He said:
          “A PhD? Man please, and your surfing “XXL MAg.com” right.”

          I am an Attorney 31 yrs old grew up on hip-hop in tha gutta, decided I wanted something better out of life so I went to High school, college, and Law School! Do I suppose to listen to classical, pop, and country now. How Stupid!

        • Worley

          You know I was thinking the same thing. Are you supposed to be a teenaged goon to listen to hip-hop? It’s alright. You don’t have to believe my status. Look me on facebook. I’m the Worley with the Nas Nigger album cover son, son.

          But before I go: Justice says “All he has to do is produce albums from himself or other artist and tour.” In other words, Mr. Charlie puts up all the money and Jay does all the labor. How far removed are we from slavery?

          Long story short: you can’t beat children at child’s play. Let ‘em have their fun.

        • Justice

          RE: Or, he can put up his own money, let’s say for the sake of speech, 50 million dollars out of pocket. Of that 50 million out of pocket, after all the overhead and expenses ie. tour crew (light men, sound crew, production crew, handlers, drivers, food catering, insurance, promotions…) do you think he wants the headache of doing all of that as an artist as well as a buisness man when he can basically “Subcontract”
          Live Nation to do the foot work? In summary, either he would have to foot the bill and do all the work for close to the same profits, or he can let them work the dirty work and he performs, produces quality acts and gets paid. It’s kind of like a DOCTOR who either works for a hospital to forgo the expense,liability and heartachs or struggles at a private practice. Or, a “Lawyer” Re:TRUTHFROMDABOOT who runs his own firm, assumes all responsibility and liabilities or works under a firm who is paying what he would have made anyway, minus the crap. Me being a business owner myself, the latter is far more attractive. You never leave money on the table, first general rule of business. Ultimatly, it is his money and I’m sure he knows much better than you how to make it. People always want to tell others their mistakes, when they have a glaring on staring them in the face. Get it together “Son”.

  • ali

    money power respect.

  • CHANGE

    GET YOUR MONEY J !!!!

  • a business, man

    Worley, please only open your mouth about things you understand, i.e. how to color by numbers. Investing in yourself is hard, especially when you’d have to pay for all the venture’s HOV’s trying to get into. I mean, even though dude could probably pay for his own tour, and release a couple albums, it would be hard for him to make a profit after dropping all that money. On the other hand, he can snatch a quick 150 from these industry idiots, and laugh all the way to the bank. He’s over-charging crackers for what they did to the Cold Crush.

    • hustla

      well said my brotha, finally someone understands wat the f*** is goin on!

      jay-z=business genius

  • Pierzy

    A business beast!!

  • Kaiser

    that’s big
    only one mistake – he should have done da deal in EURO

  • The_Truth

    *WORLEY HAS A POINT!*

    That’s the difference between Dash and Jay. . .Jay is more than willing to sign with the Corp’s and spilt profits, while Dash stressed independence and total ownership. Jay could EASILY finance what this deal provides already, but maybe doesn’t want the risk of his own at stake. (they now own him, too)

    -”Don’t hold your hand out too quick. . .nothin’s free” CEO-1836

  • http://XXLMAG DUNFIYA

    STUPID ON THEIR PART, THEY(WHITEY) THINK THEY HAVE A GOLD MINE….THEM CATS(NUCCAS)AT DEF JAM KNEW HIS ASS WAS “FORK BAIT” AND KNEW HIP HOP SALES ARE FAR TOO LOW FOR THOSE “2001 SALARY EXPECTATIONS” HE WAS PITCHIN FOR…SON IS 40 YRS OLD AND WE IN A FOCKEN RECESSION B,RECORDS SALES AT A “1988 LOW”, THAT MATH DON’T ADD UP

  • avernger xl

    Worley I believe the reason Jay is seeking partnerships rather than coming out of pocket is because he is hedging his bets. He is getting another company to take a fiscal risk with him so that if it all falls apart he won’t be broke like the jacksons. He has his money working on for him in several ventures but if he goes all in on something of this magnitude yes he could stand to get a great reward but the down side could be devistating.

  • EA$Y MONEY

    seems like just last week everyone was saying there is no way he will get 150 and he did

  • BIG_ROB

    Jay is the buisnessman’s buisnessman..

    He owns his masters, multiple resteraunts, part of the nets, roc-a-fell ect ect

    Do you think that Jay and his lawers didnt sit down and figure out the specifics before he signed the next ten years of his life away?

    Honestly Smarten up people!

  • Mr. Microphone

    Every time I think Jay can’t make any more MONEY…he goes and gets richer!!! DO YO THING BIG HOMMIE!!!

  • http://myspace.com/chrismdelz Chris “Mundelz”

    Wow… $150 million deal for a 40-year-old rapper. Ok, it’s Jay-Z and if there’s one guy to do it, obviously it’s him. But that’s just way to high, not even necessarily the climate, but c’mon, his popularity as an artist is seriously waning. He’s no longer in his prime. It’ll be similar to Mike Jordan with Washington, he’ll bring in money and attention because of who he is, but just simply won’t produce the same way he would’ve in say 2003.

  • DA BOSS

    HATERS AIN’T GONNA LIKE THIS….. GET THAT FUCKING MONEY J.

  • Look

    If you look at the deal it clearly states tours and other business ventures…the way game is played is you drop albums for the attention and then make big business moves when your in the spot light. Like the def jam deal if you go back and look it up when jay was first talking about his deal with defjam he said he got his masters and full ownership of rocafella records and now add a deal for another label in which their giving a whole budget for 2 albums upfront, this good business. Plus 25 million to buy other businesses and split the profits I mean come the fuck on who is making moves like this, you could spend your own money but the is ALWAYS the chance you fail and that goes for any company. so i would rather spend somebody elses bread and keep mines in the bank. Jay makes me wanna be a business man.

  • brill

    i dont see how nigga say “oh shit that man is 40 he jordan on the wizards”….is it me or was american gangster better than anything he’s recorded not named reasonable doubt or blueprint. i mean what album last year was fuckin wit it. and then they say that dame was all about independence? you see where that got him….owing the IRS money. i just dont understand niggas. tell me you gonna turn ya back on 150mil jus cause its a white man givin it to you? and how many records went plat last year???? think jay was on that short list wit no commercial single…..niggas is crazy

  • not required

    10 Mil advance, per record for 10 years? Ummmmm, H.O.V has the $$$ blueprint.

    • http://XXLMAG DUNFIYA

      DUDE WILL BE 50 IN 10 YRS????TOURS AND RECORDS?PLEASE……JAY Z>WHITEY

      • MARK CARTEL

        DUNFIYA u make a good point bout JAYs age but i think they lookin @ it like he would b 2 hip hop wut da ROLLING STONES, PAUL McCARTNEY, U2 and AEROSMITH is 2 rock n roll…dem old muthafucks is still gettin money and they manage 2 still turn a decent profit in record sales…but like u said JAY>WHITEY

  • Stuckfresh

    WORLEY! If you working on a P.H.D why the fuck you on here sounding gay as mayday!!!

  • Khayan from the Bronx

    FOR ALL U IDIOTS WHO SAY HE SHOULD INVEST IN HIS SELF….JUST DON’T KNOW THE BIZ. THE MUSIC INDUSTRY IS IN A DROUGHT. FOR A MAN TO GET A COMPANY TO INVEST OVER 100 MILLION INTO HIM IS A GENIUS.

  • http://xxlmag.com Drexyl

    Worley? That sounds like a nigga name.

  • Jay

    “Sorry fella. I’m working on a PhD.”

    PWND LOL!!!

    “A PhD? Man please, and your surfing “XXL MAg.com” right.”

    Oh I guess if you are a doctor or working on becoming one you cant read XXLmag.com or listen to rap music?? Slave mentality nigga thinking.

  • BlackSteel

    Jay is about big business and everyone don’t understand what that means.What he is doing is part of what this capitalist country we live is base on. And that is creating a product have other people believe in that product and mass produce it to make a profit for those who took the risk and invested.If someone approached you and said they believed in you and your vision and offered to invested in you, you mean you would not accept it, I think most of us would being real.As for independence that’s a hoax just as democracy is, we all need other’s in this life no matter how much money or power we have or think we have we need others to make it happen.As for being a 40 year old rapper and still being relevent, I think he and a few other rappers are important in the game for it to survive because like it or not rap music is not selling, not only because of internet hits,ring tones and bottleggers is because people who grew up with this music has gotten older and we don’t have rap music to relate to and really don’t feel R&B to the point of listen to that all day are not spending hard earn capital on an album with one maybe two songs worth listening too. Someone is going to have to break the sterotype that a person can’t be 40 something and be in touch with the youth and make good music for all. Just my take on the situation.

  • Richard

    Ohio’s finest check me out and add me thanks.

    http://www.myspace.com/rimestrike1

    http://www.myspace.com/rimestrike1

  • JONATHAN

    SO WHAT THE NIGGAS GOING TO JAIL YOU IDT KNOW HE KILLED A PREGNANT WOMAN! WHATS HE GONNA RAP FROM JAIL! LOLOLOL ITS LIKE YOU DONT GET IT! GOODLUCK! JAY HAVE GOOD TIME AT YOUR WEDDING WE SEE YOUR RUSHING IT! GOODLUCK@! AND LIVE NATION DONT REALIZE WHAT HAPPENED TO ME WASNT JAYZ AND ITS NOT GONNA TRANSFER OVER FOR JAYZ LIKE IT DIDNT FOR THE AMERICAN GANGSTER ALBUM! HE STILL GOTTA MAKE HOT MUSIC AND THIS GUYS IS WACK WACK WACK WACK LIKE DUCK TALK! GET REAL! GOODLUCK! SEE HOW IT WORKS OUT! TRYING TO DESTROY ME OVER YOUR BOO BOO! THAT NO ONE EVER LIKED! YOU JUST WANTED ME TO ACT LIKE I LOVED HER BECAUSE OF THE DUMB SHIT SAID ABOUT YALL! LIKE IF HE WANTS TO SLEEP WITH HER SHE MUST BE ALRIGHT! GOODLUCK MAN! YOUR A JOKE! FOR REAL FOR REAL! YOU PUFF ALL THESE NIGGAS! GOODLUCK!

  • Trickdd

    Who cares how much money the nigga makes just bring out some real shit like his old music instead of all that fancy suit and tie shit dont no men in suits and ties buy your cds Jay

  • …..

    AER

  • LastCoonAlive

    Get that money Camel face. Too bad he aint gon sign any real talent. I hope live Nation isn’t expecting any real profits from acts like Tru-life Uncle Murda And Memphis DU-RAG

  • big skiz

    funny how all you supposed lawyers and future doctors dont know jack about business. not one single company no matter how big or small it is uses the owners money to start up, thats what bankers are for. first jay would have to pay taxes on all the money he invests. you know what fuq all you im not gonna waste my time trying to school you when most of you wont understand anyhow. baller haters. stay paid to all my real hustlers legit or not.

  • FG

    THRUTH FROM DA BOOTH.I WENT TO HIGH SCHOOL COLLEGE AND BUSINESS SCHOOL AND GOT AN MBA AND I AGREE THAT THIS IS A TOP OF THE LINE DEAL FOR JAY.AND AS AN MBA I CAN TELL U THAT THIS IS THE MOST LUCRATIVE DEAL ANY ARTIST COULD WISH FOR COS THAT MEANS HE GETS A GUARANTEED ADVANCE ON HIS ALBUMS NO MATTER THE PERFORMANCE .A GUARANTEED ADVANCE ON HIS CONCERTS NO MATTER THE TICKET SALES AND AN INVESTMENT IN HIS FUTURE ARTISTS THAT HE DECIDES TO SIGN .BASICLY SOMEONE PROVIDING START UP AND OVERHEAD COSTS WHILE HE SPLITS THE PROFITS .WHY SHOULD JAY SPEND 150 MILL OF HIS OWN MONEY TO DO IT?BCOS IF THE VENTURE FAILS THATS HIS 150 MILL GONE .BUT IF ITS SPONSORED BY LIVE NATION,THATS THEIR 150 MILL GONE AND JAY DOESNT TAKE A LOSS .AS A PHD STUDENT U SHOULD KNOW BETTER THAN TO BEGRUGDE THIS MOVE.

  • sb

    blacksteel you hit the nail on the head..i was having a conversation with 9th wonder and we were saying that no one was prepared for hip hop to grow up…There needs to be a format where that 30-40 year old crowd could listen to adult contemporary hip hop..There wasn’t room for a group like “little brother” on a power station or hot 97…I mean im not trying to listen to soulja boy but i still love hip hop..And im sure many other people my age feel the same way…

    by the way i think hov will be the first to do the year round performance in vegas..booked at cesar’s palace or the mgm…watch

  • Just me

    People fail to see that there are people Jay Z age that still love rap but cant relate to the Young Jucs, Solder Boys of the world. Plus you have to remember that those generations are used to buying albums and not getting them for free. This could be genuis move. If Rock artist can still sell into their 50′s why cant hip hop artist. This could change rap since 14-29 group wont be the only focus of the art form any more if the 30 and over rap heads buy rap album they like. At the end of the day money is money weather your old or young it all add up.

  • http://www.skavenger.com Luc

    Thats big money talk can you answer me?

  • Hip Hop

    Wow thats a lot a money but jay is the greatest. I read an interesting article on jay-z signing a deal with Apple on http://WWW.SUPREMEMAG.COM is that not happening.

  • NIG

    50 CENT-JAY-Z-DIDDY-RUSSELL SIMMONS-J PRINCE-DR DRE- SHOULD FORM AN DISTRIBUTION COMPANY…$$$$$$

  • http://www.hip-hopkings.com Emz

    That is some serious money…

  • KLETEWOOD

    Live Nation in thinking GLOBALLY.

    Shit….When Jay Z tours Europe; He’s going to sell tickets in Pounds. The British Pound is worth twice as much as the American dollar. The Euro is at $1.56.

    If Jay goes on tour and hits 150 cities over the next 10 years….He’ll make the cash back right there. He probably pulls in a million a show (Gross….not NET) for huge concerts.

    For all we know…he’ll probably go on tour with Madonna.

  • Mista WANG

    now can fat joe or wayne make it rain like my ni99a jay-z?

    i dont think so!!!……

    dey make it rain jay make it a blizzard fo days

    props homie

  • http://xxlmag.com kevin

    what jay did is smart he going to get some together that might sell but most of it is from touring diff tours thats going to sell

  • http://xxlmag.com kevin

    think about it diff tours with other artist the roots nas ect.a hip hop summer fest east west and down south. with his name as headliner just like the cracker do.

  • jm french nigga

    this is for you justice .man !!! i am doctor and i listen rap music .and love that! is it a problem or am i supposed selling drugs or do some dumb shit like that! elevate yourself bro this is our generation man like you say my bro in america step our game up!!!!! by the way it s good for jay .good move and we have to take notice and taking this world over like malcom used to say by any means .peace!!!!!!!!!!!!!

  • EReal

    Wow, thats one expensive Camel.

    He’s going for the ole Madonna retirement deal. Google it bitches!!!

    T.I. = Top Informant
    LMAO! Real Talk, ole snitchin ass!

  • Ramz

    SET FO LIFE.

  • wow

    this nigga will be 50 when this deal is over

  • DADE COUNTY 305

    SB… I FEEL WHAT U SAYIN HOMIE!!!

  • dappa

    69th bitches!!!!!

    oh yeah, fuck u Worley!!!

  • BIRD

    I’m not a JAY fan but I would be a true hater to not say that he has always done his thing with the business. He’s on point. Live nation is a beast also. So 10 years means he can take his time and release material when he wants. Tour- when he wants. He just doesn’t want to risk fickle fans and digital world of downloads. Live Nation can sellout arenas for 3 tours and collect big cash and sell all their overpriced crappy memorabilia at each show, then pay him 10 M here, 25 mill there at a time. In the meantime JAY will just budget his time and pursue other ventures between his lcrative deals

  • http://yahoo philly

    the roc is back

  • http://XXLMAG H-TOWN EMPEROR

    THE ONLY WAY YOU CAN MARRY BEYONCE, CAN YOU SAY PRE-NUP? BEYONCE>JIGGA,WHEN THE JIGGA GETS GREY ANNA NICOLE DAT HOE,A BUSINESS MOVE ONLY MATTHEW KNOWLES COULD BE PROUD

  • http://midstate-sport.com midstate-sport.com

    MAN 150 MILL?

    HE SHOULD HELP OUT THE ECONOMY HELP PAY OFF CHINA,LOL THAT WE OWE

    http://www.midstate-sport.com

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