Thursday, December 16, 2021
Mega deal for the “boss”
Springsteen sells rights for half a billion dollars
$ 500 million – it is arguably the biggest deal a single musician has ever made with the sale of his entire music and publishing catalog. Bruce Springsteen even beats old master and record holder Bob Dylan by a whopping $ 100 million.
A lot of money can be made recently with the sale of so-called publisher’s catalogs – which include the collected texts and compositions of an artist. According to information from the online magazine Billboard, rock superstar Bruce Springsteen has now broken a new record. Citing unnamed sources, it said he sold his entire catalog to Sony Music for $ 500 million.
Springsteen places itself in a row with colleagues like Bob Dylan, Paul Simon, Neil Young, Shakira, Tina Turner or even bands like the Red Hot Chilly Peppers, who have already sold their song rights for millions. Bob Dylan’s highest price ever for his catalog came in a $ 400 million deal with Universal Music.
Springsteen and Sony Music are not yet ready to comment on the sale, but according to several industry sources, the deal is signed. Discussions were reported for the first time at the beginning of last month. Negotiations, led by Universal Music Publishing, apparently went better than expected. The minimum bid is said to have been $ 350 million.
Selling music rights is a comparatively young trend. Age often seems to be the deciding factor. Towards the end of their careers – or when they reach normal retirement age – artists begin planning their estate. The sale of music and catalog rights is a particularly attractive option in view of the unexpectedly high valuations. This is a rather difficult legacy for heirs. Increasing your value requires extensive management.
On the other hand, if you own the catalog, you are involved in every use of text and compositions – for example in films or cover songs. Sony Music can therefore expect high revenues. Springsteen is one of the most successful artists of the past 50 years. In the US alone, he sold 65.5 million albums. Its extensive song catalog should produce hundreds, if not thousands, of cover versions annually, it is said. According to Billboard, Springsteen’s album catalog was estimated to have sales of approximately $ 15 million in 2020 and its publishing catalog was $ 7.5 million annually.