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The Rolling Stone Money Report

The pop stars who earned the most last year -- and how they did it

ROBERT LAFRANCO with MARK BINELLI and FRED GOODMAN

U2
Touring = $62.1 million
Recording = $15 million
Publishing = $11.3 million
Net = $61.9 million

U2's costly and ambitious 1997 PopMart Tour wasn't much of a moneymaker, but Elevation 2001 was an unqualified commercial success, selling out every one of its seventy-three North American dates, according to Amusement Business/Billboard's year-end chart. Downscaling from PopMart's 70,000-seat stadiums to 20,000-seat arenas proved a savvy move. In Chicago, where the band was scheduled to play three nights, demand forced that number up to six -- and each sold out within hours. Quick sellouts mean no additional promotion costs, and multiple nights in the same arena mean the equipment doesn't have to be moved and set up, which creates the highest possible profit margin.

Dr. Dre
Touring = $0
Recording = $43.1 million
Publishing = $1.9 million
Other = $16 million
Net = $51.9 million

Dre and Interscope each used to own half of Dre's label, Aftermath, which released two of the biggest albums of the past two years: Eminem's Marshall Mathers LP and Dr. Dre 2001. Last year, Dre was paid a reported $35 million by Interscope for another thirty percent of the label. Dre is also well paid as a producer: For co-writing and producing Mary J. Blige's hit "Family Affair," sources say, he earned more than $2 million in airplay and production fees.

The Beatles
Touring = $0
Recording = $31.9 million
Publishing = $11.3 million
Net = $47.9 million

At a time when the who are licensing songs to every ad executive waving a checkbook, the Beatles are loathe to lease recordings for soundtracks, let alone car commercials. Apple Corps, the Beatles' holding company, has the only access to the Beatles' master recordings, period -- and that's what allows it to capitalize on packages such as 1, the collection of Beatles' Number One hits that ended up paying royalties to Apple for 11 million copies in the States, according to SoundScan, and another 7 million-plus worldwide.

Dave Matthews Band
Touring = $34.9 million
Recording = $6.3 million
Publishing= $9.7 million
Endorsements = $4 million
Net = $43.4 million

Before signing with RCA in 1994, the Dave Matthews Band was including its own 800 number for merchandise on indie albums, pulling in more than $1 million a year. Already self-sufficient and not in need of a cash infusion, DMB kept full ownership of its merchandising and publishing in the RCA deal. DMB's roadshow has evolved into a tight machine -- no pyrotechnics, no fancy stage, not much needed for promotion -- with an average ticket price of forty-five dollars. In 2000, when the band did much of its touring, DMB would have been at the top of this list by an enormous margin.

Madonna
Touring = $16.1 million
Recording = $28.4 million
Publishing = $6.5 million
Net = $40.8 million

Madonna's biggest paycheck last year came from a contract renegotiation with Warner Bros. Records: An inside source said the contract included an advance of $20 million to $30 million. Her Drowned World Tour was run incredibly efficiently for a complex stage show; most sources agree that the $75 million tour resulted in a forty percent profit margin for the singer.

Master P
Touring = $0
Recording = $40 million
Publishing = $0
Other = $40 million
Net = $36 million

Master P owns 100 percent of no Limit Records; he pays a distribution fee to Priority Records to get albums in stores. When Priority was sold to Capitol/EMI, P received a payment that sources say totaled $40 million. This was for money due on past sales -- No Limit has sold more than 50 million albums in the last six years, with ten platinum and twelve multiplatinum records.

Santana
Touring = $0
Publishing = $6.2 million
Net = $32.7 million

Late last year, Carlos Santana's label, Arista, cut him a check for $30 million, according to sources at the company. Clive Davis, who put out the guitarist's comeback album, 1999's Supernatural, on Arista, had departed, and the label was eager to cement its relationship with Santana. Of that amount, $20 million was from royalties for Supernatural, and $10 million was an advance for a forthcoming album.

'Nsync
Touring = $16.9 million
Recording = $13.8 million
Publishing = $3 million
Endorsements= $7 million
Net = $26.5 million

By the end of 2001, 'Nsync had sold more than 19 million copies worldwide of their two records on Jive. With the band netting two bucks per -- according to sources at the band's distributor, Bertelsmann Music Group -- that's $38 million in album sales alone. The summer tour grossed $87 million -- with concert promoter Clear Channel reportedly guaranteeing the band $1.4 million per show -- but due to high costs, sources say, 'NSync very likely made just ten percent of that in profit. The group also made corporate dollars from Verizon (a sponsor of the tour) and Chili's.

Aerosmith
Touring = $20.4 million
Recording = $6.8 million
Publishing = $3 million
Net = $24.2 million

Like Sting, Aerosmith tied the fate of their new album to a commercial sponsor by placing "Just Push Play" in a Dodge ad. More than that, however, the band's pact with the truck manufacturer provided cash and a tour sponsor -- probably worth about $3 million -- and the group is slated to be pictured in upcoming Dodge ads.

Sting
Touring = $13.1 million
Recording = $20.0 million
Publishing = $-3.5 million
Net = $24.0 million

In 2001, Sting was still reaping the benefits of a genius decision he and former manager Miles Copeland had made the previous year: trading Sting's song "Desert Rose" to Jaguar for use in what became ubiquitous television commercials. The ads gave much-needed exposure to his album Brand New Day, which until that point had received little radio airplay and wasn't selling. After the Jaguar ads, the record went on to sell 8 million copies worldwide. Sting received no publishing income last year, having opted to take a publishing advance payment -- between $20 million and $40 million -- two years ago.

TLC
Touring = $0
Recording = $21 million
Publishing = $1 million
Net = $22 million

Whitney Houston
Touring = $0
Recording = $24 million
Publishing = $3 million
Net = $26.5 million

Last year, Whitney Houston signed what is being touted as the biggest deal in history: six albums (including a greatest-hits) with Arista for a guaranteed $100 million. She received $30 million of the advance in 2001. Considering the shaky state of her live appearances, one label exec called the payout "the worst deal ever by a label and the best deal ever by an artist."

Elton John
Touring = $12.7 million
Recording = $2.3 million
Publishing = $6.2 million
Net = $21 million

Andrea Bocelli
Touring = $18.6 million
Recording = $2.3 million
Publishing = $0
Net = $20.9 million

Eric Clapton
Touring = $23 million
Recording = $1.1 million
Publishing = $3.6 million
Net = $20.8 million

Matchbox Twenty
Touring = $14.7 million
Recording = $4.5 million
Publishing = $6.7 million
Net = $20.6 million

Britney Spears
Touring = $6.5 million
Recording = $15 million
Publishing = $0
Endorsements = $7 million
Net = $20 million

Jive records reportedly delivered a $15 million check to Britney after she had sold an estimated 13 million albums worldwide in 2001. The singer also embarked on a high-profile tour, but like both 'NSync and the Backstreet Boys, the swollen cost of Spears' stage show -- she had to pay for costume changes, dancers, a custom stage and riser, eighteen trucks and a climactic rainstorm that, conveniently, soaked her T-shirt -- cut into the tour's profit margin considerably. The shows grossed $23.7 million, though Spears, sources estimate, saw only about ten percent of that figure.

Tim McGraw
Touring = $12.3 million
Recording = $6 million
Publishing = $3.8 million
Endorsements = $4 million
Net = $19.6 million

Eminem
Touring = $0
Recording = $20 million
Publishing = $5.8 million
Net = $19.4 million

Destiny's Child
Touring = $9.3 million
Recording = $13.3 million
Publishing = $1.5 million
Endorsements = $3 million
Net = $18.9 million

Jimmy Buffett
Touring = $18.6 million
Recording = $0.3 million
Publishing = $1.7 million
Merchandising = $3 million
Net = $18.9 million

Christina Aguilera
Touring = $5.4 million
Recording = $13.2 million
Publishing = $4.8 million
Net = $18.7 million

Blink-182
Touring = $4.9 million
Recording = $15.7 million
Publishing = $2.6 million
Net = $18.5 million

Limp Bizkit
Touring = $0
Recording = $13 million
Publishing = $6.5 million
Endorsements = $7 million
Net = $18.4 million

Backstreet Boys
Touring = $6.8 million
Recording = $10.9 million
Publishing = $3.5 million
Endorsements = $7 million
Net = $18.3 million

BSB hit the road last summer for a scheduled thirty-five dates. Clear Channel reportedly guaranteed the band more than $1 million per night -- which looked like a wise investment. Then A.J. went into rehab. This essentially meant a month's worth of canceled dates, a time in which the band bled money. Whenever a tour is delayed, the artist must nonetheless keep the entire crew on payroll, as it's too late for the crew members to line up other gigs for only a month. Stadium dates were downsized to arenas, and, according to many sources, the tour was inefficiently run, with sloppy management and costly equipment.

Metallica
Touring = $0
Recording = $14.7 million
Publishing = $6.6 million
Endorsements = $0.5 million
Net = $17.5 million

The titans of metal didn't release any new material or tour last year, and yet they remain in the top thirty earners. How? Quite simply, Metallica have one of the best record deals in the business -- essentially, a profit-sharing agreement with their label, Elektra. When the band threatened to leave the label at the height of its career, Elektra gave Metallica an astounding royalty rate that amounts to nearly four dollars per album sold. That hefty rate truly pays off for a band such as Metallica, which had four of its records appear on the Billboard catalog charts during 2001.

The Eagles
Touring = $10 million
Recording = $4.6 million
Publishing = $7.2 million
Net = $17.5 million

Billy Joel
Touring = $12.7 million
Recording = $2.6 million
Publishing = $6.1 million
Net = $17.1 million

Rod Stewart
Touring = $17 million
Recording = $4 million
Publishing = $0
Net = $16.8 million

Creed
Touring = $0.3 million
Recording = $14.1 million
Publishing = $6.6 million
Net = $16.8 million

Neil Diamond
Touring = $16.4 million
Recording = $1.2 million
Publishing = $2.6 million
Net = $16.2 million

Neil Diamond scored big in 2001 when a song he wrote for the Monkees in 1966, "I'm a Believer," was used in the hit animated film Shrek. On top of that, his oldies-laden tour grossed $36 million.

Bon Jovi
Touring = $8.5 million
Recording = $5.3 million
Publishing = $5.9 million
Net = $15.6 million

Last year, Bon Jovi sold 2.1 million records in the States and another 7 million worldwide. However, royalty rates outside the U.S. are typically lower -- sources say Bon Jovi can earn better than two bucks per record in the States but only about $1.25 per record internationally. The cost of having an album produced and distributed by local companies, varying from country to country, eats up royalty payments abroad.

Lenny Kravitz
Touring = $0
Recording = $12.6 million
Publishing = $6.1 million
Net = $14.9 million

Janet Jackson
Touring = $10.5 million
Recording = $8.5 million
Publishing = $1.5 million
Net = $14.3 million

Enya
Touring = $0
Recording = $8.2 million
Publishing = $8.1 million
Net = $14.2 million

Sade
Touring = $12 million
Recording = $0
Publishing = $2 million
Net = $14 million

Brooks and Dunn
Touring = $11 million
Recording = $1.8 million
Publishing = $1.1 million
Net = $13.9 million

The country act grossed $16 million with its popular Neon Circus package tour, with stilt walkers, fire breathers and jugglers. The show cost less than $500,000 to develop, and far less each week it was on the road.

Korn
Touring = $0
Recording = $15 million
Publishing = $3.4 million
Net = $13.8 million

Kiss
Touring = $7.7 million
Recording = $5.5 million
Publishing = $0
Merchandising = $2 million
Net = $12.9 million

The masters of merchandising reportedly earn $2 million a year from more than 130 character licenses around the world. The merch for 2001 included a Sterling Marlin Racer collectible car and a Kiss coffin. The band also received a reported $6 million check from Mercury Records, part of which was payment for a newly released five-disc box set that retailed for $70, or $750 for a collector's version that came in a guitar case. Gene Simmons and Paul Stanley own the Kiss name and control the profits; band mates Ace Frehley and Peter Criss are now salaried employees.

Jennifer Lopez
Touring = $0
Recording = $-1.8 million
Publishing = $1.9 million
Movies = $17.5 million
Net = $12.3 million

AC/DC
Touring = $8.4 million
Recording = $2.8 million
Publishing = $3.8 million
Net = $12 million

James Taylor
Touring = $11.3 million
Recording = $0
Publishing = $0
Net = $11.3 million

Mariah Carey
Touring = $0
Recording = $10 million
Publishing = $1.6 million
Other = $2 million
Net = $10.9 million

Mariah Carey had a tough 2001 -- the very public failure of her movie Glitter and its soundtrack were accompanied by a very public personal breakdown. But before all that, Carey managed to pull off an impressive payday when Virgin bought her out of her contract with Sony to the tune of $30 million. Contrary to previous reports, Carey did not pocket all of that cash -- about $17 million reportedly went directly to Sony. Expect her to be higher on the next Rolling Stone money list after receiving $28 million to leave Virgin on top of the $21 million the label had already paid her for Glitter.

Tool
Touring = $8.5 million
Recording = $1.8 million
Publishing = $0
Net = $10.3 million

The Offspring
Touring = $0
Recording = $7.9 million
Publishing = $3.7 million
Net = $9.3 million

Jay-Z
Touring = $0
Recording = $3.7 million
Other = $5 million
Net = $9.3 million

Shaggy
Touring = $0
Recording = $10.8 million
Publishing = $2.1 million
Endorsements = $0.5 million
Net = $9 million

Shaggy might have made a higher showing on the list if not for that damned A.J.! Shaggy had been scheduled to open for the Backstreet Boys on their stadium tour, but after it ran into problems, he had to drop off due to prior commitments.

Ozzy Osbourne
Touring = $3.5 million
Recording = $2.7 million
Publishing = $1.5 million
Ozzfest = $3 million
Net = $8.5 million

Last summer's Ozzfest grossed nearly $28 million; as namesake and performer, Osbourne received a nightly six-figure guarantee. Ozzfest got an added lift from sponsor Trojan; J?germeister kicked in more for the Ozzy/Rob Zombie Merry Mayhem Tour in December.

Nelly
Touring = $0
Recording = $9 million
Publishing = $2.7 million
Net = $8.2 million
Dido
Touring = $0.6 million
Recording = $7.3 million
Publishing = $3.4 million
Net = $8.2 million

THE RS MONEY REPORT is the result of months of research and reporting. It covers the estimated net income for the top-earning performers for 2001. These numbers have been compiled through conversations with record-company executives, managers, lawyers, agents and publicists. Wherever possible, the numbers we gathered were run past several inside sources for verification.

Still, whether you're Forbes or Rolling Stone, calculating the earnings of famous people necessarily involves some estimation and guesswork. Much financial information is private and closely guarded. Many sources inflate their own numbers; others refuse to talk at all. Yet sometimes management is painstakingly forthcoming and honest.

These figures reflect what the performers have taken home after paying out touring and recording expenses. Record-company deductions for marketing, videos, packaging and promotion further eat into the performers' profits. And, finally, managers, agents and lawyers take their cut. What's left makes up the net earnings in our list.

Rolling Stone would like to thank everyone who spoke off the record, and the following sources for their assistance and information: Pollstar, SoundScan, Amusement Business/Billboard, The Yellow Pages of Rock, the Recording Industry Association of America, the International Federation of the Phonographic Industry, and ARTISTDirect.

Posted Jul 04, 2002 12:00 AM


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