Publication: Daily Variety [US]
Date: September 4, 1992
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Title: "Prince Inks King-Size Deal"
Written By: Bruce Haring

WB deal worth $ 100 mil, plus Paisley Park expansion and other goodies.

Prince yesterday became the latest music superstar to sign an elephantine new contract, inking several joint ventures with Warner Bros. Records and Warner/Chappell music publishing that were touted by his representatives as guaranteeing income of more than $ 100 million, based on advances and venture funding.

At the heart of the deal is an extension of Prince's existing recording contract with Warner Bros., adding one album to the five he owes under his present agreement, which was signed in 1986. Prince is scheduled to deliver a new album Oct. 20, the first in the new deal.

The reconfigured recording pact allegedly calls for $ 10 million in advances per record with a royalty rate around 25% (around $ 2 per record sold), figures that would place Prince at or near the top of music industry artists.

As with past megadeals for Madonna, Michael Jackson and others, the numbers bandied about concerning the value of the deal could not be confirmed. Prince will be paid his album advances upon delivery, with funding for the joint ventures delivered on an annual basis, according to one source. The album advances in particular should raise eyebrows, doubling the reported $ 5 million that will be advanced to Madonna for each of her albums under her Time Warner agreement.

Whatever Warner Bros. financial risk--and the amounts are termed "advances," which means a potential commercial disaster can likely be recouped by various record industry accounting practices-- Prince's track record as a hitmaker for himself and other artists should bolster Time Warner's confidence.

He has had several multiplatinum albums during his 13-year career, including the blockbuster "Purple Rain," which sold over 10 million albums. His last release, "Diamonds and Pearls," sold over two million units. He has also written hits for the Bangles, Sheila E, Tevin Campbell, Vanity and Apollonia, among others.

Aside from Prince's individual contract, the deal will expand Prince's Minneapolis-based Paisley Park Enterprises, creating a new, stronger Los Angeles presence. First artists signed to the revamped Paisley Park are Rosie Gaines, a vocalist from Prince's New Power Generation, and vocalist Carmen Electra.

A new label has been added to Paisley Park's empire, however its name--which looks like x --will cause many typographical headaches worldwide. The label uses a combination of the male/female symbols (informally termed "the Love Symbol" by Paisley Park staffers, although a spokeswoman stressed that it will not be called Love Symbol Records) and will focus on releasing singles of what was termed "cutting-edge street music."

As part of a beefed-up Los Angeles presence for his operations, Prince will become a VP of Warner Bros. Records and will maintain an L.A. office to supervise the operations of his new joint venture and serve as an A&R advisor.

In publishing, Prince and Warner/Chappell have established a new joint-venture music pubbery -- although its name was not available at press time--while Prince's existing publishing outlet, Controversy Music, has signed new administration agreements both in North America and internationally. The publishing aspects of the overall deal were said by one source to be worth close to $ 40 million, a number that could not be verified.

Jill Willis, executive VP of Paisley Park Enterprises, said the funding from the new deal will allow Paisley Park to hire six new people. The staff search, which Willis said was already under way, will see hires in pop and R&B promotions, marketing, artist development, administration and a liaison with the Warner Bros. creative services staff.

While Paisley Park Enterprises will remain based in Minneapolis, the record label will increase its presence in L.A. "primarily because it's easier to work with people in close proximity rather than by telephone," Willis said.

No relocations from the home office are anticipated and new hires will be drawn from Los Angeles or from New Yorkers willing to move, Willis said.