R. Kelly's Publishing Catalog Is for Sale, but What's It Worth?
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Bulletin YOUR DAILY ENTERTAINMENT NEWS UPDATE AUGUST 25, 2021 Page 1 of 19 INSIDE R. Kelly’s Publishing Catalog Is • Kanye’s Lengthy for Sale, But What’s It Worth? ‘Donda’ Rollout Is Bringing in Millions BY ED CHRISTMAN • Megan Thee As R. Kelly faces a trial in New York on federal rack- bank because business associates had been cheating Stallion Allowed to Release BTS ‘Butter’ eteering and sex trafficking charges, with another trial him for years. Remix, Judge Rules for similar charges to follow in Chicago, the singer’s “There are these people — and I don’t even know lawyer says that he’s running out of money. “His funds who they are — that still have some sort of access or • OnlyFans Reverses are depleted,” said attorney at an control of his money and his assets,” says Porn Ban After Deveraux Cannick Michael Spanking From Aug. 3 court hearing, requesting free trial transcripts Leonard, an attorney on Kelly’s forthcoming Chicago Creators, Media for his client. trial. “For 15-20 years, he had no access to the money. In jail since July 2019, Kelly hasn’t been able to tour He didn’t even have a cash card. He would literally • Amazon Music Country Lead Kelly or release new music. His existing recordings still have to ask his financial people, ‘Can I have a couple Rich Is Leaving generate plenty of revenue that flows to former label hundred bucks,’ or, ‘I need a car.’ But he had no abil- RCA Records — about $1.7 million in the United States ity to engage in financial transactions, and all these • TuneCore Promotes so far this year, Billboard estimates — but the resulting people around him did. And all these people around Andreea Gleeson to CEO royalties don’t go into Kelly’s pockets. That’s because him used all his money and took his money.” the money has been claimed by both his former In the past few years, both RCA and Universal • Olivia Rodrigo recording studio landlord and a woman who won a $4 Music Publishing Group have dropped Kelly, although Gives Writing Credit to Paramore on million judgment against him for allegedly sexually both still own rights to his work, and he scuttled a ‘Good 4 U’ abusing her when she was 16. planned tour outside the United States. So, in order Kelly’s financial problems aren’t new: He has owed to raise money, Kelly has been quietly shopping his • Wondery, Amazon millions of dollars in federal and state taxes for over publishing catalog, according to two music asset buy- Music Strike Licensing Deal With a decade. In 2019, two months after the explosive ers who were approached about a possible purchase. Tinkercast Surviving R. Kelly put the abuse allegations against Although the catalog includes over a dozen top 10 Kelly back in the public eye, Kelly told interviewer Billboard Hot 100 hits recorded by Kelly, as well as • BILLBOARD 200 Gayle King that he couldn’t afford to pay the $161,000 songs for Aaliyah, Michael Jackson and others, a CLICK he owed in child support and only had $350,000 in the (continued) TOTAL IMMERSION ESSENTIAL ANALYSIS of the latest business topics and trends formulated to give industry players the competitive advantage in a rapidly changing market. EXCLUSIVE QUARTERLY REPORTS that deliver in-depth, holistic reporting; case studies; and custom data designed to serve the industry. A DEEP DIVE LIBRARY stocked with intelligence on fan data, SUBSCRIBE TO BILLBOARD PRO FOR song catalog sales, TV synchs, Africa’s burgeoning music ACCESS TO NEW REPORTS business and the gaming industry’s embrace of artists. AND THE ARCHIVE WE’RE BACK, LIVE IN MIAMI #BILLBOARDLATINWEEK WWW.BILLBOARDLATINMUSICWEEK.COM FOR SPONSORSHIP INQUIRIES: MARCIA OLIVAL, [email protected] | MIKE VAN, [email protected] Page 3 of 19 IN BRIEF buyer hasn’t been found. A representative released before 2007 — including “Bump N’ him, and because he appears to be a moti- for Kelly declined to comment. Grind,” “I Believe I Can Fly” and “Ignition vated seller, one music asset trader tells Bill- “It has been offered to me a number of (Remix)” — appear to be covered under a board that Kelly’s catalog would likely times by his team, and of course, I’ve said no publishing deal that Kelly signed with Zom- only sell at an eight- to 10-times multiple, for the obvious reasons,” says Merck Mer- ba, which Universal Music Group acquired or between $8.4 million and $10.5 million. curiadis, Hipgnosis Songs Fund founder in 2006, along with the rest of BMG Music And “if he is guilty,” says a music publishing and CEO of The Family (Music) Ltd., adding Publishing. Some of his post-2007 songs executive, “then it is a fire sale.” that the last discussion took place about six appear to be covered under a co-publishing Additional reporting by Cathy Applefeld months ago. Kelly himself sang most of his deal with UMG, which would give him a Olson, Dan Rys and Neena Rouhani. biggest hits, and Mercuriadis believes that bigger split of songs like “Number One” A version will appear in the Aug. 28, 2021, listeners will have an even harder time sepa- and “Good Sex.” So Kelly could sell his 50% issue of Billboard. rating the man from his music if he’s found songwriter share from earlier compositions guilty. “There are incredible songs in that and both the writer’s share and co-publish- catalog,” he says, “but why would you take ing rights to the later material. Kanye’s Lengthy that kind of risk?” It’s hard to say what these songs are Another music asset buyer who passed worth now, though. R&B song catalogs ‘Donda’ Rollout on a purchase two years ago was even more typically sell for a 12-times multiple of net blunt: “We wouldn’t go near it with a 10-foot publisher’s share of gross profit, but such a Is Bringing in pole.” successful sole writer could potentially get Other asset buyers Billboard spoke with 20-times NPS, which Billboard estimates Millions say they haven’t been approached but could to be at least $1.05 million, and implies that potentially be interested, although they Kelly’s songs could have been worth up to BY DAN RYS would try to make a deal quietly in order to $21 million. avoid attention. The allegations against Kelly would o most Kanye West fans, the Kelly’s efforts to sell “in an effort to meet almost certainly reduce that price signifi- prolonged rollout for his 10th some of his financial obligations” are com- cantly. Few movies and advertisements will solo album, Donda, is yet an- plicated by the fact he’s in jail, says Nicole presumably want to license synch rights to other example of how the artist’s Blank Becker, one of his trial attorneys who his songs. His radio airplay has diminished Tlegendary perfectionism can complicate his is not involved with the catalog sale and did 98% since Surviving R. Kelly came out, and career. As West continues to tinker in the not confirm any details. “It’s kind of difficult his popularity on on-demand streaming studio, however, the ticketed in-person and to do when you’re in prison and don’t have fell 13.5% the year after the documentary livestreamed listening parties he has been the ability to speak to the people that be to (according to MRC Data), with his streams hosting have been raking in the dough. assist him with that,” she said. now growing slower than streaming overall. On July 22, West filled Atlanta’s Mer- What could be for sale? Kelly’s songs Given the accusations and charges against cedes-Benz Stadium with 42,000 fans who AUTHORITATIVE INTELLIGENCE. DELIVERED DIGITALLY. CLICK HERE FOR FREE DELIVERY DIGITAL NEWSLETTERS O N S A L E SEPT. 18, 2021 2021 NEW & R ENOVATED VENUES On September 18th Billboard will provide CONTACT readers with an exclusive backstage Cynthia Mellow | 615.352.0265 pass into the newest and latest renovated [email protected] venues around the world. This special Joe Maimone | 212.493.4427 feature will assess the architecture, [email protected] production capabilities, sound, capacity Lee Ann Photoglo | 615.376.7931 level, fan amenities, and more that entice [email protected] talent to these highly anticipated venues. Ryan O’Donnell | +447843437176 Take this opportunity to advertise your venue [email protected] and reach key touring industry decision- makers as they plan tour schedules and map Marcia Olival | 786.586.4901 out must-play venues. [email protected] O N S A L E 9 / 1 8 | I SSU E C L O S E 9 / 7 | M A T E R I A L S D U E 9 / 8 Editorial content subject to change BILLBOARD COUNTRY UPDATE APRIL 13, 2020 | PAGE Page 4 5OF of 1919 ON THE CHARTS JIM ASKER [email protected] IN BRIEF SamHunt’s Southside Rules Top Country paidA betweenlbu $25ms; to $100 aBrett ticket for a Don Y-oungan additional ‘Catc $350,000h in ’-esincome on Fifth top of guaranteed Airplay marketing spend to promote the da listening party, supervised by Balenciaga what the prior period had brought in, Bill- spot,” says one brand marketing executive, creative director DemnaLeader; Gvasalia. Travis (Days board estimates.Denning Makes Historynoting that often deals of that magnitude before, a new Beats by Dre commercial that West also has a deal with Apple Music involve multiple deliverables. “It’s either aired during the NBA Finals had teased that will let the company stream the listen- about generating revenue to help support Samthe Donda track Hunt’s second “No studio Child full-length, Left Behind.”) and first in overing fiveevents years, again Southside once Donda comes sales (up 21%) out, in the a trackingthe week.