Tuesday, April 01, 2008

U2 Inc.

Want U2 T-shirts? U2 caps? U2 pajama bottoms? U2 buttons? U2 anything?

Talk to Live Nation.

For the next twelve years, the American promoters will be the hand that rocks U2. The contract is said to be in the $300 million range, which is a fair bit of change. For that, Live Nation will manage all U2 merchandise and manage the tours.

If the Rolling Stones could work far past their sell-by date, why not an equally megalithic band? Bono and the lads will have to produce if they are to get a return on their $300 million investment. The high cost presumes that U2 will continue to sell out every venue on several more world tours. Their last go-round brought in well over $300 million, so one good tour ought to do it. Then the rest is icing on the money cake.

U2 has been so phenomenally successful that the band had to shift assets off-shore to reduce their tax burden. With Live Nation behind them, they'll be glad of the tax dodge because profits can only go up for U2 Incorporated.

Live Nation won't get all of the action, however. Universal Music Group managed to hang on to a proven winner. They'll get their piece of the upcoming album, due in October, and Live Nation will make a fat bit for themselves when the tour begins.....in October, most likely.


Anonymous said...

Hi just wondering where you got the U2 pic from want to use it for something but need to get copyright clearance.


O hAnnrachainn said...

Lifted it off of Google, and since Blogger is owned by Google there's no problem. I don't know what your legal issues might be if you wanted to use the photo elsewhere.