The deal does not include touring or merchandise, according to the sources, but the group is playing major festivals and large ballrooms this summer, boosting its commercial potential. RCA declined to comment.
“People are really excited about the touring — the streaming numbers and the consumption numbers aren’t big,” one of the sources, whose label considered the deal, tells Billboard, adding that the valuation marked “crazy times.” “It’s like an Odd Future deal, but when Odd Future did that deal, it was close to $2 million.”
(Odd Future signed a deal with Sony and Red Distribution in 2011 to start Odd Future Records, and the collective’s founder Tyler, the Creator launched his own festival, Camp Flog Gnaw Carnival, in 2012.)
Brockhampton’s signing is one of many big-money hip-hop signings in recent months, including Juice WRLD ($3 million from Interscope), Lil Pump ($8 million from Warner Bros.) and 03 Greedo ($1.7 million from Alamo/Interscope). The signings point to top labels’ new spending aggressiveness in the streaming era after decades of digital malaise — tomorrow’s Spotify public listing could generate billions in major-label equity.
Kevin Abstract, one of the band’s members, called the signing a “new era” last week on Twitter, adding: “Nothing changes we still in this living room making songs making out and all of that rca just gon help us push this gay agenda.”
The deal, according to a record-business source, covers all of the group’s 14 official members.