LIVE NATION SET TO SIGN POP STAR SHAKIRA FOR $70M!

LIVE NATION SET TO SIGN POP STAR SHAKIRA FOR $70M
By PETER LAURIA and BRIAN GARRITY
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Last updated: 11:19 am
July 1, 2008

The board of concert promoter Live Nation signed off on its roughly $70 million deal for pop star Shakira last week and a deal is expected to be announced within days, The Post has learned.

Sources said the deal will be for recording, touring, merchandising and other rights, known in the industry as a "360 deal."

Inking the Shakira deal comes just one week after a brawl in Live Nation's boardroom prompted the resignation of Michael Cohl as chairman. The battle focused on the number - and type - of artists the company is signing, as well as the economics of such deals.

Cohl's departure has sent shock waves through Live Nation, with employees in the company's Artist Nation division - which was set up to house Madonna, Jay-Z and the other artists expected to sign 360 deals - fearing layoffs.

Though Live Nation and Shakira have been in talks for about 10 months, sources said after last week's negative press, CEO Michael Rapino wanted to move quickly to finalize the deal as a way to reassure employees the he was committed to the Artist Nation strategy.

A spokesman for Live Nation declined comment. Shakira's lawyer, David Lande, did not return multiple calls for comment.

While the value of the Shakira deal is less than the $120 million Live Nation agreed to pay Madonna and the $150 million it committed to Jay-Z, sources said the price tag being bandied about was still a robust payday for the "Hips Don't Lie" singer.

"That's rich for an organization that wants to be [conservative] with these kinds of deals," said a source close to Live Nation.

Shakira still owes SonyBMG's Epic Records another English-language studio album, expected next spring, as well as a greatest-hits record.

That means that Shakira likely won't deliver her first album to Live Nation until late 2009 or early 2010, at the earliest. Prior contract commitments also mean Madonna and Jay-Z are not expected to release Live Nation albums until then, as well.

But sources said Live Nation isn't banking on Shakira's album sales or even domestic touring to make the deal work.

Aside from US cities with large Hispanic populations, sources said, Shakira lacks the built-in fan base that Madonna and Jay-Z enjoy in the US.

Rather, sources said Live Nation views Shakira as a top-level international touring draw, particularly in Latin America, where she routinely sells out stadiums.

As one source put it: "Shakira's numbers outside the US are crazy stupid [meaning great]."

These sources said Live Nation expects Shakira to continue growing her international audience and is banking on her to be their Latin music pillar, much like Madonna is for pop and Jay-Z is for hip-hop.

"Live Nation is trying to establish itself in a big way in each genre no matter what the loss leader is going to be on it," said one major label executive.

Source http://www.nypost.com/seven/0701200...sets_117975.htm