Singer ‘Jay-Z’ gets $150 million contract with ‘Live Nation’

In what is being described as one of the biggest record contracts ever awarded, Jay-Z, the formerly retired rapper and one-time president of Def Jam Records, has agreed to let concert promoter Live Nation sell his recorded output and merchandise and organize his tours for $150 million.

But here in Boston, people in the music business aren’t sure the record-breaking deal is a wise one for Live Nation.

“His sales here are not what they used to be,” Skippy White, owner of the Roxbury music store, Skippy White’s Records, said about the rap superstar.

Still, Jay-Z, 38, whose real name is Shawn Carter, is expected to receive $25 million upfront, $5 million per year for his own label, publishing, and management business, and $10 million for each of three albums to be released over the next 10 years.

The remaining $45 million will presumably be used for the rap and clothing entrepreneur’s future acquisitions.

White said Jay-Z’s popularity is on the decline for two reasons. “When an artist gets to the point where they become so huge, they cross over to an all-encompassing pop audience, and they really go downhill in the black community,” he said. But he also said his customers are tired of hard-charging rap. “Now, they want to hear someone who can sing,” he said.

And over in Cambridge, Reed Lappin, owner of In Your Ear record stores, had a similar reaction.

“So what,” he said. ‘It’ll just mean higher prices to see his concerts.”

In Boston’s South End, Panos Panay, founder of Sonicbids, an online matchmaking site for bands and their bookers, agreed.

“While the deal is fascinating from a business perspective, I don’t see how it will benefit the consumer in any way,” he said. “All this will do is contribute to the trends that lead to higher ticket prices.”

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