Elton sells management company in £16m deal
Elton John today sold the company founded to manage his business and emerging artists in a deal worth £16m (€23.3m).
The singer – who has sold nearly 250 million records worldwide including hits such as Candle In The Wind – has agreed to hand control of Twenty-First Artists to entertainment group Sanctuary.
He has signed a five-year management contract with Sanctuary that will allow the company to pick up commission on his earnings in all aspects of his career.
Selling Twenty-First Artists will also bring a windfall for its two other co-owners, Frank Presland and Keith Bradley, who have agreed to join Sanctuary for five years. The deal is being funded by a mixture of cash and shares.
Elton John said: “I feel strongly this will represent the continuation of a very creative period for me.”
Sanctuary operates the largest global management business for music artists with a star roster including Beyonce, Morrissey, Manic Street Preachers, Fleetwood Mac, Nelly and Iron Maiden.
The division generated £31.8m (€46.3m)in revenues in the year to September 30 out of an overall turnover of £220.9m (€321.8m), which includes contributions from recorded music and merchandising.
In contrast, annual turnover at Twenty-First Artists totalled £4.7m (€6.8m) in the year to March 31, 2004, and pre-tax profits were £1.55m (€2.2m).
In a career spanning 35 years, Elton John has had 29 consecutive top 40 hits in the UK and earned 35 gold and 25 platinum albums. His latest offering - Peachtree Road – is his 43rd album and was launched in November.
His success is arguably greater in the United States where more than 100 of his singles have occupied spots in the charts, earning him a string of Grammy Awards.
The singer also won an Oscar for his collaboration with lyricist Tim Rice to create the soundtrack to the Walt Disney blockbuster The Lion King.
According to the Sunday Times Rich List, Elton John is in 233rd place with a personal fortune of about £175m (€255m).
