The deal, which includes the rapper’s copyright holdings, has been called “Lebron-sized” by a close source.
Well, the top hip-hop star recently made the most significant shift of his career. Drake’s current record contract has landed him a huge payday. According to Variety, the Certified Lover Boy has re-signed with Universal Music Group for a new deal worth up to $400 million, which would encompass “various creative channels and income streams.”
Drake has struck a multi-faceted deal with Universal Music Group that encompasses recordings, publishing, merchandise and visual media projects. The agreement could be in the vicinity of $400 million or more. https://t.co/8y8GZ4NIVl
— Variety (@Variety) May 3, 2022
According to Variety, the announcement was made during UMG’s Q1 earnings conference. Insiders have suggested a value of $400 million, but it might be far more. The deal is “LeBron-sized,” according to a source.
Drake has entered into a multi-faceted deal with Universal Music Group, CEO Sir Lucian Grainge confirmed on the company’s earnings call today.
Described by an insider as “LeBron-sized,” the deal encompasses recordings, publishing, merchandise and media projects, per @Variety. pic.twitter.com/Jfto5OttvF
— Boardroom (@boardroom) May 3, 2022
During a conference call, UMG CEO Lucian Grainge described the arrangement as a “extensive, multi-faceted partnership” that will encompass Drizzy’s “recordings, publishing, apparel, and visual media ventures.”
Drake’s agreement comes on the heels of The Weeknd’s announcement of a similar arrangement (who may soon be going by just Abel). The Weeknd signed a similar extension of his previous deal with Republic (a subsidiary of Universal) earlier this year, which would cover “recorded music, publishing, merchandise, and video,” according to reports. According to Variety, these partnerships have grown increasingly common as a strategy for major labels to retain the industry’s top performers under their roofs as technology advancements and societal shifts have enticed more and more musicians to go it alone outside of the label structure .
“Drake benefits from a deep catalog that performs well. Also, he became a free agent at a young age,” one industry vet said while another added, “Drake has the bargaining power to negotiate a net profit split with the best deal terms and a humongous advance upfront.”
