. In the deal, Jay-Z would leave Def Jam to start Roc Nation which will finance and see Jigga managing, making recordings and touring for the next ten years, splitting profits with Live Nation. "I've turned into the Rolling Stones of hip-hop," Jay-Z said.
The deal gives Jay-Z $25 million upfront, $5 million a year for five years to cover overhead for the label, advance payment of $10 million an album for a minimum of three albums , plus a series of payments adding up to about $20 million for publishing, licensing and other rights. Jigga says the deal is a way "to reach the consumer in so many different ways right now. Everyone's trying to figure it out. I want to be on the front lines in that fight," continuing "In a way I want to operate like an indie band," he said. "Play the music on tour instead of relying on radio. Hopefully we'll get some hits out of there and radio will pick it up, but we won't make it with that in mind."
Live Nation has already signed Madonna to a similar deal and earlier in the week they announced a deal with U2. Critics of the company’s model believe it will be hard
for them to turn a profit on such an expensive deal. The company’s
stock price actually fell after they announced their $120 millon deal
with Madonna. But Michael Cohl, chairman of Live Nation, says the deal
does not depend on increased record sales to be successful. “He could
be doing more tours and doing great,” Cohl explained to the Times.
“There could be endorsements and sponsorships.” He added, “The whole is