To acquire Jay-Z, Live Nation ponied up a pay package worth $150 million—It’s highest to date. The terms of the deal include $5 million a year for five years to cover overhead for Roc Nation, plus $25 million for any investments or acquisitions. Carter will also receive an initial payment and general advance totaling $50 million, $10 million an album for a minimum of 3 albums, and $20 million for some licensing and publishing rights.

Live Nation plans to recoup that money from music sales, licensing, touring, sponsorships and endorsement deals. Already, Jay-Z’s twenty-eight date Live Nation sponsored “Heart of The City” tour—featuring singer Mary J. Blige—is expected to gross upwards of $33 million. But Roc Nation—a joint venture between Carter and Live Nation—is how the concert promoter really stands to benefit from the deal. Essentially, Live Nation plans to build a franchise of businesses around Jay-Z, similar to how Carter built various enterprises around the hip-hop star. Michael Kohl, the Chairman of Live Nation, even revealed to the New York Times, “What he’s done has kind of mirrored what we want to do and where we think we’re going.” Roc Nation will share revenue with Live Nation, and act as the umbrella for Carter’s outside business endeavors. Thus far, those ventures include music publishing, a record label, talent management and consulting. [ link ]