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When music sales last boomed in the 1980s and 1990s, with many fans snapping up CD versions of the albums they already owned on cassette and vinyl, record companies quietly offered a rare concession to some of their top-selling ’70s and ’80s stars in order to re-sign them: they granted the artists ownership of their earlier albums. Now, as streaming fuels another boom, the major labels are paying handsomely to get those classic albums back.
The latest such in-the-works purchase is Sony’s negotiations to acquire Bruce Springsteen’s album catalog, sources say. While it is unknown what the asking price is for Sony to acquire complete ownership of his masters — which could mean no longer paying royalties to Springsteen depending on how the deal is structured — Billboard estimates that the albums carry a valuation of between $145 million and $190 million.
Sources say Springsteen is also shopping his publishing catalog, with some of those sources adding that the Springsteen camp had been looking for upwards of $350 million for both the publishing and recorded masters catalogs.
The Springsteen album catalog, which has racked up 65.5 million sales in the United States according to the RIAA website, and which includes the 15-times platinum Born In The U.S.A. and the five-times times platinum The River, still has plenty of firepower, as his music has generated 2.25 million album consumption units in the U.S. since the beginning of 2018, according to MRC Data.
While Springsteen has long been associated with Columbia Records and Sony Music, he was among a handful of superstar artists like Garth Brooks, AC/DC, Pink Floyd and other Sony artists Neil Diamond, Bob Dylan and Michael Jackson who all managed to win back ownership of their recorded masters in the last decades of the 20th century.
But now seems to be the perfect time for artists who own their copyrights to cash in and sell them and the income streams they generate — especially older artists who need to begin thinking about estate planning. In the past few years, music assets have been generating the highest multiples in history, with iconic song catalogs selling for 25 to 30 times net publishers share (gross profit), while superstar recorded masters are selling for a 15 to 20 times multiple of net label share (also gross profit, but with more complicated cost-of-goods expense deductions than publishing).
Besides that, with the Democrats in power in Washington, there is a movement to increase capital gains taxes well above their current 20% level. So despite a widespread fear that any capital gains tax increases will be retroactive, plenty of sellers are scrambling to get deals done before the end of the year in the hope that the increase won’t apply until 2022. It looks like Springsteen is about to accomplish that — at least for his master recordings.
Billboard estimates that the Springsteen catalog generated about $15 million in revenue in 2020 in a year that saw his catalog activity buoyed by a new release — last October’s Letter To You — and the carryover from 3 albums that were released in 2019: Western Stars, the Western Stars soundtrack and the Blinded By the Light soundtrack.
By averaging the last three years of financial statistics from the Springsteen catalog — a common strategy used in determining valuations — Billboard estimates the Springsteen master recording catalog averaged about $12 million in sales. After deducting production and distribution costs of 20% of revenue, Billboard estimates the Springsteen catalog produced a gross profit of $9.6 million. At a 15-times multiple, that would suggest a $145 million valuation; at a 20-times multiple that would put the valuation at about $190 million.
Further, Billboard estimates that Springsteen’s publishing catalog brings in about $7.5 million a year. Consequently, the estimated value of the Springsteen publishing catalog is between $185 million (at a 25-times multiple) to $225 million (at a 30-times multiple).
However, it’s unclear if Springsteen has settled on a buyer for his publishing catalog. Some sources suggest Sony is acquiring the publishing catalog along with the master recordings; others say the publishing catalog might still be in play. According to those latter sources, the publishing catalog is being looked at by one or more of the big, private-equity-backed publishing companies.
In any event, sources say the Springsteen camp was very selective about who they shopped his rights to and, in fact, some suggest that big private equity firms might have been approached so they could be used as a stalking horse in obtaining the desired pricing target from Sony.
All told, if Springsteen is selling all of his rights, that means his pay day could be anywhere from $330 million to $415 million, according to Billboard estimates.
Sony declined to comment, while a representative for Springsteen was unable to provide any information.
Friends, family members and long-time clients are paying tribute to music manager, booking agent and entrepreneur Jesse Aratow of Madison House Entertainment, who died Friday (Oct. 29) after a sudden, unexpected illness. Aratow, 48, was a partner and agent at Madison House in Boulder, Colorado, managed singer JJ Grey and represented the String Cheese Incident. He is survived by his wife Liza and his two young daughters Kalea and Lily.
Born in Oakland, California, Aratow attended Lick-Wilmerding High School in San Francisco and went on to Cornell University, from which he graduated in 1994. In 1999 he join Madison House Entertainment as a partner, helping grow the company’s roster of agents, artists and managers.
Aratow’s sudden passing shocked many who had worked with him since the 1990s. Billboard spoke and emailed with several of them in the wake of his death.
“How do you describe a relationship where you spent five days a week (plus a lot of weekends) with someone for over two decades?” says Nadia Prescher, Aratow’s longtime business partner and co-founder of Madison House. “We were rocks for each other. Absolute unwavering support and defense of the other. Who I am and how I am says a lot about Jesse Aratow and his impact on people. Jesse always gave love. The hole Jesse left is a chasm in our community and in my heart and soul. I know I’ll never be the same, but I know Jesse wouldn’t want that anyway. He’d want me to be even better than before. So I’m going to attempt that and I challenge everyone who loved him to do the same.”
Nearly “25 years ago Jesse and I started our first company in Telluride named Box Canyon Concerts. One of our first shows was with a local bluegrass band called The String Cheese Incident,” says friend and business partner Jeremy Stein, president at Madison House Presents. “We never looked back. It’s a rare scenario to constantly be inspired by a close friend for such a long time. Yet, it was always easy with Jesse. Jesse relentlessly grew his life through true connection, clear integrity, love, and caring for all who crossed his path. I will always be incredibly proud and honored to call myself his friend and brother.”
Kevin Morris of Red Light Management, an original partner in Madison House, tells Billboard, “you will never find a more genuine person in this business. There are no words that can describe the loss we are all feeling right now.” Mike Luba, a founding partner of Madison House and senior vp at AEG Presents, says, “there were five unique voices in Madison House and undoubtedly Jesse was always the voice of reason. My life will personally and professionally never be the same.”
Michael Travis of The String Cheese Incident says the group feels “profoundly saddened by the premature loss of our amazing brother Jesse. We have no words as the tears continue to flow as we sort through this shocking event.” Travis added that Aratow was “our first road manager and our steadfast teammate for 23 years.” String Cheese Incident’s Michael Kang adds that Aratow “was and will always be much more than our manager and booking agent. He was our fellow powder hound, connoisseur of fine food and libation, father extraordinaire, loving partner, adventure seeker and through thick and thin, he remained fiercely loyal and principled in all his affairs. He is family. We will miss him terribly and hope to honor his legacy and time in our presence.”
JJ Grey describes Aratow as an incredible manager but noted that their business relationship “pales in comparison to what knowing him has done for me as a human being. The truth of it is just knowing Jesse has made me a better man.” Grey’s agent and Aratow’s long-time friend Joshua Knight, now a vp at Wasserman Music, says Aratow was “like a brother to me in and out of work and will be sorely missed. He cared so much for his artists and his Madison House family and fought for them every day. But more than that, he was the best human, friend, father and husband. Everyone in our industry should take a note on how to prioritize your life from Jesse. Dedicate your time to your family and people you love first.”
Artist Keller Williams recalled the first time he met Aratow. “I believe it was the El Rey theater in Albuquerque New Mexico,” he says. “I was opening for String Cheese and he was the new tour manager for them. A warm smile and a handlebar mustache gave him that friendly bodyguard vibe. I think he quickly learned that it smells better working in an office. I miss him already.”
Don Strasburg, co-president of AEG Presents Rocky Mountains and PNW, tells Billboard, “Our community, our family and the music world is suffering. Jesse Aratow was a beacon of goodness. We are all stunned to write these tributes. He was too young, too good a father, husband, friend and lover of life. I will carry his love, commitment and wisdom forever.”
Pete Shapiro of Dayglo Presents describes Aratow as “a good friend to many, and a great champion for his artists. He was willing to fight his friends on behalf of his artists. He would know when to push, and he did it in a way where you actually wanted to agree with him. He was fair. He was honest. He was strong. The world needs more of him. I just wish I could book another show with him.”
FPC Live president Scott Leslie says Aratow was “the crazy combination of an agent who always got the most for his clients while also being an absolute joy to work with.” Michael Sanders with Opus One Productions says that “in 2005 Jesse Aratow was my first and only phone call when I pitched a new artist I was managing, Lotus. Ever since he started booking the band and guiding their career, Jesse has been my closest business ally and friend in the music industry.”
Alicia Karlin, vp of global touring and talent at AEG Presents and Aratow’s first assistant, tells Billboard that working with Aratow “was the greatest gift” because “we trained each other on being a team. He showed me that the best way to succeed in this business was to do it all and always supported me on my journey from touring and working at festivals to being an assistant, agent, manager and promoter. He taught me how to fight hard while acting with integrity and kindness.”
Agent Cassie Siegel from MINT Talent Group also got her start working for Aratow and was on his team for 12 years. “He was my mentor and my boss, but more than anything he was my friend,” she says. “He showed me that patience, kindness and thoughtfulness were the keys to success and that a big bear hug would always help. For 12 years Jesse was only a sliding glass door away from me, I will forever remember his cheesy dad jokes, I will miss our rose birthday lunches and no matter how much time passes, I promise always ‘to keep the dream alive.’”
Jon Hardage, partner at More Music Group, says Aratow “epitomized soul and kindness, two characteristics that can sometimes be missing in the music industry. Jesse was the kind of person who would pause whatever he was doing to listen to what was going on in my life and give thoughtful feedback.” Bobby Clay at C3 Presents notes that “there was no limit to Jesse’s generosity. He was abundantly generous with his time, guidance and most of all his wisdom. It’s hard to put together words that really describe what this loss means to the business.”
Friends can read through more comments on Aratow’s life and leave their own tributes here. Details on a memorial service and celebration of Aratow’s life will be added to this article when details become available.
On Tuesday (Nov. 2), Dan + Shay shared some disappointing news — followed by some happier news — with fans. First, the duo revealed they have had to cancel two upcoming shows on their Dan + Shay The (Arena) Tour due to a positive COVID-19 test within their touring camp.
“A member of our immediate touring party has tested positive for COVID-19 and to protect the safety of our fans and everyone around us, we will sadly have to cancel the upcoming dates in Orlando and Atlanta,” the duo said in a social media post.
The affected concerts include shows at Orlando’s Amway Center on Nov. 4 and in Atlanta’s State Farm Arena on Nov. 5. The duo shared the news with fans on social media, adding that they were unable to reschedule the shows.
“We know a lot of y’all have traveled or plan to travel for these shows, and it breaks our hearts to let you down,” the duo’s Dan Smyers and Shay Mooney said.
On a positive note, they did tease some other upcoming news — namely, a few holiday surprises set to be revealed beginning Wednesday. The duo previously released two holiday songs last year, including “Take Me Home for Christmas” and “Christmas Isn’t Christmas.”
That’s not the duo’s only recent uplifting news. Next year, they will tour stadiums as part of Kenny Chesney’s Here and Now 2022 tour. Dan + Shay will open shows for Chesney, alongside Old Dominion and Carly Pearce. For fans bummed about the two now-canceled Orlando and Atlanta shows, Dan + Shay also noted the 2022 Chesney stadium tour will be visiting markets near Atlanta and Orlando.
“We’ve always dreamed of being a part of this tour, so these shows will be extra special and we hope to see so many of y’all there,” Dan + Shay’s post read.
Lorde reminds viewers that its humans’ duty to protect the planet for future generations in her new “Fallen Fruit” music video, which she released on Tuesday (Nov. 2).
The video poignantly reminds us of the fragility of life on Earth, with the Garden of Eden metaphor referenced in the song’s title leading to Lorde’s main point that our greatest sin would be to leave our home uninhabitable for generations to come after us. But that is sadly already the case in the “Fallen Fruit” visual, as Lorde reveals that not everything on the island from her previous “Solar Power” music video will never remain peachy keen due to greedy human consumption that eventually leads to its demise.
“In the ‘Solar Power’ video, you were introduced to the island as a lush paradise — glistening water, blue skies, not a grain of sand out of place (barring that pesky beach trash),” Lorde said of the video in a statement. “Cut to: humans doing as they do, getting greedy, treating the land with disrespect and stripping it of its beauty. There’ll always another pristine place to start again, right? The gardens that were once lush and fruitful are now on fire. The fishing boats are busted up and overturned. All that’s left of the peaches are their pits. Amid all that, my character makes a choice.”
“Fallen Fruit” comes from her third studio album and climate-conscious project Solar Power, which was released on Aug. 20 and topped Billboard’s Top Alternative Albums chart and debuted at No. 5 on the all-genre Billboard 200. The song, which broke into the top 40 of the Hot Rock & Alternative Songs tally, features backup vocals from Phoebe Bridgers, Clairo, Marlon Williams and Lawrence Arabia.
Lorde confirmed on Tuesday that she will release a deluxe version of Solar Power this Friday, which will feature two bonus tracks — “Helen of Troy” and “Hold No Grudge” — that the New Zealand-born singer-songwriter described as the “black sheep” of her album.
“These songs were fun explorations on the album journey,” she wrote in a newsletter to fans, according to NME. “They didn’t quite fit into the tracklist for whatever reason but they’re both big tunes.”
Watch her “Fallen Fruit” music video below, and pre-save the expanded edition of Solar Power here.
Daddy Yankee has become co-owner of Puerto Rican baseball team Los Cangrejeros de Santurce baseball team, Billboard has learned.
The reggaeton superstar, born Ramón Luis Ayala Rodríguez, is also an investor and will be joining Chairman Thomas Axon and President Justo Moreno as owners of the San Juan-based team, which hosts its home games at the Hiram Bithorn Stadium.
For Yankee, who was raised in Santurce, this new career move hits home. “I know what it means to a kid, I’m a product of the little league and grew up going to the Cangrejeros games at the Hiram Bithorn,” he exclusively tells Billboard. “ I’m part of something that I’m really passionate about and that’s baseball.”
Prior to becoming a global Latin artist and topping the charts, Yankee aspired to become a professional baseball player, even trying out for Major League Baseball team Seattle Mariners. He was unable to pursue his sports career after being hit by a bullet while taking a break from a recording studio session. However, his dream did not stop there.
“Now is the right moment due to the inspiration and impact our Puerto Rican players are having on MLB,” he says, further emphasizing the importance of his role as co-owner. “I want to inspire the kids in Puerto Rico supporting our local team to keep developing talent in The Roberto Clemente League.”
The team is home to various Hall of Fame baseball players, including Roberto Clemente, after whom the entire baseball league is named. Additionally, the Cangrejeros of the Roberto Clemente League won the 2019-20 league championship.
“The team’s history and importance to Puerto Rico’s proud sports heritage convinced Daddy Yankee that the continued renaissance of Puerto Rico baseball was something he just felt like he needed to be involved with,” Axon said in an official statement. “The particular history of this team, and Daddy Yankee having grown up playing baseball essentially in the shadow of our stadium in Santurce, were also important in Daddy Yankee’s decision.”
Ready to “ fight to regain our crown against some fantastic competition,” Daddy Yankee will be present at the Hiram Bithorn Stadium on November 6 for the inaugural event and kick-off of the 2021-2022 baseball season.
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