The Edge Fund

Speaking of Bono, whilst the global recession rages on we can always rely on our superhero to strap on the wraparound shades, get trapped in a giant plastic lemon onstage, generally act like a bit of a goon and set a shining example of shrewd business acumen to us all.

On 31st March 2008, it was confirmed that live music promotion company Live Nation signed a 12 year deal with U2 worth an estimated $100 million (£70 million).

The deal includes Live Nation controlling the band's merchandise, sponsorship and official website. The parties also agreed that the band would receive 1.6 million shares of the company pegged at the value of $25 million; as of 17 December 2008, those shares were worth less than $19 million. It was reported on 18 December 2008 that, with the shares diving head first into the financial mosh pit, Live Nation honoured their financial commitments, and bought back the shares at a loss of $6.1 million.

The deficit presumably went straight into The Edge’s fund, a special piggy bank devised purely to fund The Edge’s effects pedals and increasingly strange headwear. O.K so we may have fibbed a bit on that that last detail but we’re all entitled to a bit of fun in these hard times aren’t we?

Live Nation are a major global events company and venue operator who are most famous for pioneering these so called ‘360 Degree Deals’, founding a Live Nation Artists division in 2007 and signing up artists such as Madonna, Shakira, Nickelback and Jay Z to long term contracts with similar terms to the agreement with U2.

Live Nation has reportedly said that Madonna is the only other artiste with a stock value guarantee clause.

Over the past 12 months, shares in Live Nation have peaked at $18.75 and troughed at $2.73 closing at $5.74 on December 31st.

Bono was sadly unavailable for comment.

Have your say! What do you think of these ‘360 degree’ deals? Is it a great idea for established artists to sign everything over to a massive company with a background primarily in promoting live shows and operating venues? What does it say about the future of the industry?