Iggy Azalea reveals why all the biggest artists are selling their music catalogs for staggering sums, including Bob Dylan, Justin Bieber, Bruce Springsteen, and Shakira.
Iggy Azalea recently shocked fans when she sold her entire music catalog to a quality private group for an eight-figure sum.
But rapper Fancy is far from the only major music star selling his catalogs for eye-popping amounts, with everyone from Bob Dylan to Justin Bieber signing similar deals in recent years.
Explaining the reasoning behind this to fans on Twitter, the 32-year-old said: “We are selling because it saves a lot paying tax once on the figure.”
She continued, “It also gives you a bigger amount to invest, so your money keeps coming without needing anyone to play the song.” Low-risk mutual funds earn 10% per year. Money itself wins.
“This is also why it’s nonsense for many of you to write, ‘You would have been paid forever, now it’s just once, I hope it lasts!’ No. Now people really get paid forever, without a decrease in income: because money does not depend on your broadcast numbers.
Iggy added: ‘Everyone can’t sell their catalogue. Just because you’re selling doesn’t mean people are buying. FYI You have to show you can hold onto your numbers for years for a hedge fund to want to make that sale, or it’s a bad deal for them.”
Iggy Azalea (pictured) explained why she and many other artists are selling their music catalogues.
Iggy sold the rights to his music last November to Domain Capital for an eight-figure sum, Billboard magazine reported.
This included his signature hit Fancy, along with songs like Black Widow, Kream, and his collaboration with Ariana Grande, Problem.
After receiving backlash from fans on social media for the sale, Iggy responded: “I sold a piece of my catalog to whoever I wanted, for an amount that means I don’t have to work another day in my life.”
“I love you all, but the teachers talk is a little beyond their understanding of business.”
She added: ‘It means that a part of the songs I sold to a company that now owns them. In exchange, they paid me what they would have earned in my lifetime, upfront in a lump sum.
Iggy is just one of many music stars to sign similar deals in recent years.
Bob Dylan (pictured) dumped his back catalog in two separate deals rumored to total around $500 million.
Justin Bieber (pictured) took home $200 million for his catalog in one of the biggest deals ever for a young artist.
Bruce Springsteen sold the rights to his recorded work and music publication to Sony for an estimated $550 million, according to the New York Times.
The publication called it “the largest transaction ever for the body of work of a single artist.”
Bob Dylan also dumped his catalog in two separate deals rumored to total around $500 million, while Neil Young collected $150 million for selling his catalog.
Country stars like Blake Shelton, Jason Aldean, Keith Urban and Brad Paisley have also sold their catalogs.
In February, Justin Bieber sold 100% of his interest in the copyright and performance rights, master recordings and related rights (the performance within the recording) of his entire catalog to investment firm Hipgnosis Songs Capital.
Bruce Springsteen (pictured) sold the rights to his recorded work and music release to Sony for an estimated $550 million.
The Conversation reported that the deal netted the “Baby” singer $200 million.
Merck Mercuriadis, founder and CEO of Hipgnosis Song Management, said: “This acquisition ranks among the largest deals ever made for an artist under the age of 70.”
Meanwhile, Colombian singer Shakira also sold her catalog to Hipgnosis, but the amount was never made public.
Other deals include Justin Timberlake, who has raked in more than $100 million for his catalogue, and hip-hop icon Dr Dre, who has raked in $200 million.