Nickelback inks global deal with Live Nation
LN acquires 12 artist rights, including touringNASHVILLE -- As expected, Live Nation has entered into a long-term global partnership with Nickelback, following closely on the heels of a multirights deal notched with Shakira.
A source confirms the deal is worth in the $50 million-$70 million range. Payments are set to roll out over time as the band performs. Rather than a time frame, a Live Nation statement says the deal "contemplates" all areas of Nickelback's global music enterprises, including three touring and album cycles, with an option for a fourth.
A source said the band has two records left on its Roadrunner contract.
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, nontour sponsorship and endorsements, DVD and broadcast rights, fan club, Web site and literary rights.
Nickelback, which previously toured arenas with AEG Live, is expected to play Live Nation amphitheaters, beginning next year. Similarly, the band's merchandising had been through Bravado, and will be handled by Live Nation's merchandising team in the future. Thus, merch and touring represent "found money" for Live Nation in the Nickelback business.
"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," Nickelback's Chad Kroeger said in a statement. "With that said, the Live Nation deal helps us maximize the band's opportunities in all areas of our career."
Nickelback becomes the fourth superstar act to join the Live Nation Artists roster, along with Madonna, Jay-Z and Shakira, with the previously announced U2 deal expected to be completed in the coming months.
The band is a touring powerhouse and has built its fan base by relentlessly breaking into new markets with its live shows. The Canadian rockers' last tour, which visited North America and Australia in 2006-07, sold more than 1.5 million tickets and grossed in excess of $67 million.
Nickelback ranked 20th among all touring acts in 2007, according to Billboard Boxscore.