Live Nation Nears a Deal for Managers of Music Acts
Tuesday, December 3, 2013
New York Times (11/13/13) Sisario, Ben
Sources say Live Nation Entertainment is in advanced negotiations to purchase U2 and Madonna's management companies. As part of the arrangement, Live Nation would pay more than $30 million for both Principle Management run by U2 manager Paul McGuinness, and Maverick, run by Madonna's manager Guy Oseary. McGuinness would assume Principle's chairmanship and Oseary would become U2's day-to-day manager, under the terms of the merger. "I am delighted that Live Nation, who with Arthur Fogel have been our long-term touring partners, have joined us in creating this powerful new force in artist management," McGuinness says. "I have long regarded Guy Oseary as the best manager of his generation, and there is no one else I would have considered to take over the day-to-day running of our business." Pollstar reports that four U2 tours and one by Madonna are among the top 10 highest-grossing tours, with U2's last tour making more than $700 million in ticket sales. In 2007, Live Nation signed a $120 million deal with Madonna that covered touring and recorded music rights for 10 years, and it later sold the recording rights to Universal. In 2008, it forged an agreement with U2 to manage the band's touring and merchandising exclusively for 12 years. Such deals signaled a major shift in the music business, as artists looked to concerts, merchandise, and various other outlets to recoup lost record sales.
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