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Bruce Springsteen In Talks to Sell Recorded Music Catalog to Sony Music

Sources say Springsteen is also shopping his publishing catalog, with all his rights estimated to be worth between $330 million and $415 million.

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 Starssoundtrack and the Blinded By the Lightsoundtrack.

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, Billboardestimates 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.

Q2

Original Post

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I don’t get it. He went through a lot to get ownership and control of his art back in the 70s and now he’s gonna sell it off for a big pay day and to maybe avoid paying more tax? And he’s not short of a dollar...

Cheers,

Hazy

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She said last night she read those letters...
And they made her feel one hundred years old...


I don’t get it. He went through a lot to get ownership and control of his art back in the 70s and now he’s gonna sell it off for a big pay day and to maybe avoid paying more tax? And he’s not short of a dollar...

That is exactly what I thought when I read this  story.


 

"I've done my best to live the right way"

I don’t get it. He went through a lot to get ownership and control of his art back in the 70s and now he’s gonna sell it off for a big pay day and to maybe avoid paying more tax? And he’s not short of a dollar...

Through the years if we've learned anything about Jon Landau it's this he's a shrewd businessman.  This explains everything: 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.

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.

After reading this, I can hardly blame him.

____________________________________

The SPL Rocks!

Prego che tu stia danzando con San Pietro alle porte perlacee del cielo





Pulled up to my house today
Came and took my little girl away!
Giants Stadium 8/28/03



Oats

People get old.
It’s amazing, unsettling, unfathomable, but they age and will one day even die!  

Someone said it will even happen to ME!!  

It’s inconceivable that one could fight for control over something in their twenties, win, spend almost 45 years administrating and carefully nursing it’s growth and value, and then decide one day to sell it for (gasp) profit!  My lord, die with that dental practice you cultivated since college, take that variety store you started as a teenager with you to the grave, and don’t ever think of selling that 1964 Rolls you rebuilt by hand over 20 years to anyone while you are alive!!!!!

Really, what is so surprising or shocking besides the fact that ‘you’ were not prepared for this day?  He fought for control of his music TO GET TO THIS DAY.  He got it.  HE WON.  He owns it.  He did what he wanted to do with it throughout his lifetime, and now, he is ready to move on to the next logical step as a wealthy, very wealthy, senior (another gasp) - estate planning!   His catalog will be used AS HE WISHES IT TO BE, not how you or I imagine it should.  He will plan for the day when he passes on, and will setup in advance plans to care for those who will one day survive him, be it family, friends or charities.  His musical legacy will not be the burden or the responsibility of his offspring.  

I have talked a lot with friends about the impending release of No Nukes.   I truly feel there will be a huge generation who will watch it, and especially because of the gap in time since the band last performed, when the next tour rolls around, will be let down seeing someone who does not have the exuberance, energy or stamina of a 30 year old on stage, and will still expect that one of these nights he will again do a legendary four hour show.   Steve is still with him, but when you flip over the cover of WIESS, 2 cohorts are gone and two more have died and only Gary remains.  No slight at all to Max and Roy or to Nils, but it serves to reflect on the fact that everything has changed since ‘the beginnings’, and that we are seeing a great performer past his prime.  That’s a fact, not a knock.  When he sings about the mansion on the hill, he doesn’t imagine it from the street, he remembers how he used to feel about it before he lived in it.  Prove It All Night does not carry the sexual entendre with it when sung by a septuagenarian.  Hey little girl, is your daddy home, can get creepy if you still think he’ll be on fire looking at her when he turns 71.   Most of us, now, see a reenactment of the pleasures of our youth when he performs.   A younger crowd sees a still living icon who’s youthful wildness they missed in person, but cuddle close to in hundreds of bootleg tapes and video clips and project those visuals onto him on stage  

Bruce has accomplished what he set out do as a kid, and way, way, way more, it’s safe to say.

Sell your catalogue, sell your farm, do whatever YOU want to do with the rest of your life Bruce.  You gave me 50 years.  Thank you.  It was completely unexpected that December day I first heard that ‘Rosalita’ song on the radio.   The only thing I ask of you, is don’t expect me to buy all those greatest hits, top all time hits, best of the band years, top solo performance collections or the other 50 repackagings of your music in the rest of my reclining, declining and redefining years.  I’ve already got all the oldies.  👍.    Our luck may have died and our love may be cold, but with you forever I will stay.

Q2.  🍻

Some good points well made Q2. Agree. I wonder though, is a lump sum better than giving up an ongoing regular income for your estate in the 10s of millions? I don’t know...

Also “selling out” to a big corp?...and handing over control of your art to the likes of them?

Maybe “selling out” is a bit rough, I don’t know...

You’re right though, it’s his to do whatever he likes with it...he certainly earned it.

Cheers,

Hazy

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She said last night she read those letters...
And they made her feel one hundred years old...


Last edited by Hazydavo (dmnsg)

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