Drake Signs a New Deal with Universal Music Group Worth AU$500 Million
A source described the deal as “LeBron-sized.”
The Group CEO of Universal Music Group or UMG, Sir Lucian Grainge, has confirmed what many have long suspected. He confirmed that the world’s largest music company had entered “an expansive, multi-faceted deal” with Drake. He mentioned the deal during a Q1 earnings call of the company.
Drake signs with Universal Music Group
Sir Lucian Grainge did not share the exact figure offered to Drake. An insider of the company stated that the deal was “LeBron-sized.” The deal is likely worth US$ 360 million or AU$ 506 million.
Previously, Drake was signed to Cash Money. It was not a direct deal as he was signed via UMG-owned Republic Records. Now, he has re-signed to UMG with the new deal. This new deal covers recordings, publishing, merchandise, and “visual media projects.”
Many people are saying that Drake has earned this huge amount as he is immensely popular at the moment. He is also a chart-topper and the star who was the most-listened-to artist of 2021.
One attorney in the music industry said, “Drake has the bargaining power to negotiate a net profit split with the best deal terms and a humongous advance up front.”
Though the Canadian rapper’s relationship with Young Money/Cash Money, which is owned by UMG, remains unclear, it seems that he has completed his obligations in his previous contract.
In July 2020, Steve Stoute, a record executive, and entrepreneur, said that Drake was due to get a huge payday after his UMG contract was fulfilled. He had stated, “Drake is about to get the biggest bag in the history of the music business by far. If Drake goes independent, the music business is over.”
Drake is no doubt one of the most popular singers of all time. He has no problem consistently topping the charts. He has done so with each of his projects. Only last month, it was reported that Drake generated more U.S. on-demand streams in 2021 alone than all pre-1980 music combined. At the time of drafting this article, the representatives of the songwriter had not confirmed or commented on the deal.
Share this on social media
