U2 FOUND what they were looking for yesterday, and probably more, when they signed an estimated $300 million-plus contract with Los Angeles-based entertainment group Live Nation, writes CIARÁN HANCOCK, Business Affairs Correspondent.
Bono, Edge, Larry and Adam have signed a 12-year deal with Live Nation that will see the US company handle the band's merchandising and touring activities and run their website, U2.com
Neither side revealed the sum involved but senior industry figures estimated it could be worth more than $300 million (€190 million).
This is based on U2's phenomenal ability to rake in cash from their sell-out worldwide tours, which are run about every four years.
As a result of the deal, the Irish rockers are now nicely set up for retirement. Bono will be in his 60th year by the time the contract runs out in 2020 while the other band members are just a year younger.
U2's most recent series of concerts, which included dates in Croke Park, was the second-highest grossing tour in history, earning $389 million at the box office, according to data from Billboard magazine.
The Rolling Stones's 2005-07 Bigger Bang tour took in $558.3 million. Live Nation promoted both of these tours.
Live Nation previously has produced and promoted every U2 tour since PopMart.
"We've been dating for over 20 years now - it's about time we tied the knot," Bono said yesterday. "With regards to U2.com, we feel we've got a great website, but we want to make it a lot better. We want a closer, more direct relationship between the band, its audience and Live Nation has pledged to help us with that."
Michael Cohl, chief executive of Live Nation Artists, welcomed the U2 deal. "It has long been our intention to consolidate and extend our relationship with U2, so this is a very exciting deal for us," he said.
Live Nation recently signed a 10-year contract with Madonna worth $120 million. Madonna's deal includes rights to new music. U2, however, will continue their recording relationship with Universal Music Group. The band will release a new album in October.
Both deals highlight the shift in the global music industry and the impact of the internet on revenues. Artists now use albums primarily to promote their tours, a reversal of past trends.