International concert promoter Live Nation will invest roughly $3 million in Korn, according to a New York Times article, for an estimated 6% in the rock band’s box office, licensing, publishing, merchandising and CD sales. The deal is unique in that it allows the promoter to invest in the band’s overall career while tapping into revenue streams that have heretofore been unavailable to promoters.
The Korn/Live Nation joint venture expands on the partnership Korn created with EMI Music in September (Billboard, Nov. 12). EMI invested $25 million upfront for an estimated 30% stake in Korn’s overall business.
The Live Nation deal runs for two album cycles, beginning with Korn’s current album, “See You on the Other Side,” released Dec. 3.
Like the EMI deal, the Live Nation venture was brokered by Korn counsel Gary Stiffelman with law partner John Branca in conjunction with Korn management The Firm. Live Nation’s interest in the joint venture does not dilute EMI’s investment.
Though a tour is set to be announced Friday, Korn’s touring earning potential remains unclear. At the height of Korn’s popularity, the band grossed slightly more than $15 million in annual ticket sales as a headlining act, averaging about 50 U.S. dates per year, according to Billboard Boxscore. Last year, a 17-date headlining run grossed $3.8 million.
