The Stool Pigeon music newspaper

Madonna has insisted she deserves every penny of her gargantuan new $120 million deal with promoters Live Nation. The 49-year-old superstar has struck a landmark agreement, which will allow all of her records and merchandising to be handled by the touring company. She’s now committed to three more world tours and albums before she reaches 60.

“The paradigm in the music business has shifted and as an artist and a businesswoman, I have to move with that shift. For the first time in my career, the way that my music can reach my fans is unlimited,” she said. “I’ve never wanted to think in a limited way and with this new partnership, the possibilities are endless. Live Nation has offered me a true partnership and after 25 years in the business I feel that I deserve that.”

Madonna will be the founding member of Live Nation’s new operating branch Artist Nation, who will control her brand, tours, studio albums, merchandising, sponsorship, music-related TV projects, fan clubs, film projects, DVDs and websites.
She would have to sell around 15m copies of each of the concert promoter’s three albums to recoup its huge investment - something she hasn’t done since 1990’s Immaculate Collection.

As reported last issue, Madge sold her stake in her own Maverick imprint (part of the Warner Music Group) following a multi-mullion dollar lawsuit between Warners and its subsidiary. After Live Nation put the offer, worth £59m, on the table Mrs Ritchie gave Warners first refusal to match it. Warners suggested the figures didn’t add up.

Warners head Edgar Bronfman Jr said: “If a deal (with an artist) doesn’t pencil out in a way that meets the needs of artists within a framework of financial discipline, we’re more likely to walk.”

Live Nation top dog Michael Rapino chose to have a subtle dig at Warners: “Madonna is a true icon and maverick as an artist and in business. Our partnership is a defining moment in music history,” he said.

Madonna is thought to be getting a $17.5m cash advance on signing a 10-year deal with the US firm as well as another $50m in cash and shares, and a huge windfall for each of the three albums she has committed to.

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• Madge sells up just as Waners rumours mount (Posted in 013 October 2007 | Business News)