NICKELBACK JUMPS TO LIVE NATION FOR ALL THE RIGHT REASONS

Live Nation President/CEO Michael Rapino announced that the company entered into a long-term global partnership with mega-selling, shed-filling Nickelback. No financial details were released, but there’s no question that the deal is well into nine figures considering the precedent.

The inking brings the roster of Live Nation Artists to four, following the headline-grabbing signings of Madonna ($120 million), Jay-Z ($150 million) and Shakira ($70-100 million) to 360 deals. In all, LN plans to sign four to six such deals with world-class artists in the first year of operation of its Live Nation Artists division.

The touring power’s gain is Warner Music’s loss—make that huge loss—considering Edgar Bronfman Jr. and Lyor Cohen shelled out $75 million for 75% of Roadrunner Records primarily to get hold of the Canadian superstar band. The LN signing ends WMG’s desperate attempts to work out a revenue-sharing deal of its own with Chad Kroeger and company.

The partnership includes three touring and album cycles, with an option for a fourth. Under the deal, Live Nation has acquired 12 separate artist rights to feed its global distribution pipe. These include touring, tour sponsorship, tour merchandise, tour VIP/travel packages, secondary ticketing, recorded music, clothing, licensing and other retail merchandise, non-tour sponsorship and endorsements, DVD and broadcast rights, fan club, website and literary rights.

Said Kroeger: "Our relationship with everyone at Roadrunner Records has been amazing throughout our career, and we look forward to continuing that same great relationship for the remainder of our recording commitment with them. With that said, the Live Nation deal helps us maximize the band's opportunities in all areas of our career. We are extremely confident that Live Nation's complete global team is the world’s finest, and we are excited to be a part of the Live Nation vision and future!"

Commented Rapino: “Nickelback has struck a chord with music fans all over the world and their universe continues to expand exponentially. Year over year, the band has sold more records and concert tickets, and has tremendous upside potential as they continue to break into new markets around the world. Our global distribution and marketing platform is uniquely positioned to help them accelerate the growth of their fan base and maximize their earnings across all their potential revenue streams. Nickelback’s addition to our incredible roster of artists confirms that we remain on plan to sign global rights deals with the world’s most successful artists to feed our core concert pipe.

“This deal with Nickelback will enable us to fully capitalize on our vertically integrated platform to connect the band with their fans, monetizing our unparalleled reach to drive revenues and increase overall margins,” Rapino continued. “This partnership is structured to increase our revenue and cash flow potential significantly, while reducing our risk profile. This investment is cross collateralized, spread over multiple years and comprises multiple business opportunities.”

Nickelback has sold more than 26 million albums worldwide, with their last album selling more than 10 million units globally. The band is also a touring powerhouse, as its most recent last tour, which visited North America and Australia in 2006/2007, sold more than 1.5 million tickets and grossed in excess of $67 million.