Photo: Getty Images
The Weeknd has reportedly inked a new deal that will change the way artists sell their catalogs.
According to a report Variety published on Saturday, December 13, the Canadian artist, born Abel Tesfaye, and Lyric Capital Group have finalized a new business partnership that will invest in the singer's entire catalog through 2025. The deal allows Tesfaye and his manager, Wassim "Sal" Slaiby, to maintain ownership of all master recordings, along with the "Blinding Lights" crooner's publishing.
“From the beginning of the meeting, it was clear to all at Lyric that Abel would not sell his catalog," a rep for Tesfaye said.
"He wanted to be more innovative and creative in the way we established a partnership," the rep continued. "To that end, through this venture, we constructed and launched a new business model with Abel and his iconic catalog whereby Abel and his team have the freedom to execute their creative vision with the entirety of his rights, both publishing and masters. This unique catalog deal sets a new standard for artist equity and control.”
The deal is not a traditional catalog sale. Sources told Billboard that Tesfaye and LCG essentially raised $1 billion for the singer's music assets, with 75 percent of the sum raised through debt. Lyric Capitol Partners now own 25 percent equity stake in the artist's catalog, but Abel and Sal will continue to possess all master recordings. The Weeknd will also own his publishing, which he and his writer own 75 percent of through a co-publishing stake, and will maintain all creative control. The other 25 percent of Tesfaye's publishing, which is not part of the Lyric Capital deal, is now owned by Chord Music Partners.
The only other artists to achieve such a feat are Queen, who sold its masters to Sony for $1.27 billion, and Michael Jackson. The late pop singer's recorded masters and music publishing catalogs were valued at $1.25 billion when Sony acquired 50 percent in a deal last year.