Celebrity bond
A celebrity bond is
Background
While a celebrity bond can cover any work of art whose future royalties are based in part on a widespread reputation of the creator of the work, celebrity bonds are usually music-based. For a music-based celebrity bond, the issuer seeks to put together intellectual property rights of one or various artists to "songs that have stood the test of time", typically "
Bowie Bonds
Bowie Bonds are
Other artist rights securitization
The Bowie Bond issuance was perhaps the first instance of
In 1998, Pullman raised $30 million for
The 2005 success of Apple's iTunes and other legal online music retailers has led to a renewed interest in celebrity bonds.[10] However, a 2011 offering by Goldman Sachs for SESAC bonds based on, among others, Bob Dylan and Neil Diamond, was delayed and ultimately canceled due to lack of investor interest.[12] More recently, a range of funds have appeared offering investors access to music royalty streams; examples include Kobalt Capital,[13] Round Hill Music,[14] publicly traded Hipgnosis Songs Fund,[15] The Music Fund[16] and Alignment Artist Capital.[17]
Efforts of competitors in the small celebrity bond market often move towards overlapping. In the late 1990s, Pullman unsuccessfully sued former business partners, who began engaging in the royalty bond business, for misappropriation of what Pullman believed were his
As of 2012, Pullman himself assumes the risk for the stream of future royalties by purchasing royalties outright from artists who are looking to sell instead of packaging them for others to buy.[8]
References
- ^ a b c d e f g h i Phyllis Furman (October 26, 1998), "Investment Banker Hopes to Issue More Rock 'n' Roll Bonds", New York Daily News, Sec. Business, p. 28, archived from the original on February 23, 2016, retrieved January 18, 2013
- ^ 1634–1699: McCusker, J. J. (1997). How Much Is That in Real Money? A Historical Price Index for Use as a Deflator of Money Values in the Economy of the United States: Addenda et Corrigenda (PDF). American Antiquarian Society. 1700–1799: McCusker, J. J. (1992). How Much Is That in Real Money? A Historical Price Index for Use as a Deflator of Money Values in the Economy of the United States (PDF). American Antiquarian Society. 1800–present: Federal Reserve Bank of Minneapolis. "Consumer Price Index (estimate) 1800–". Retrieved February 29, 2024.
- ^ Venkataraghavan, Srinivasan. "David Bowie Bonds & IP Securitization". Retrieved 19 April 2012.
- ^ a b c d "Bowie Rocks Wall Street", Eastside Journal, Bellevue, WA, pp. B1, B4, 15 February 1997
- ^ a b "The Pennsylvania Gazette: David Pullman", fetched 16 March 2009,
- ^ "The Pullman Group -- David Bowie Bonds" Archived 2012-07-31 at the Wayback Machine, fetched 15 March 2009.
- ^ Chappatta, Brian (23 July 2019). "David Bowie Will Always Be One of a Kind in Bonds". Bloomberg Opinion. Archived from the original on 2020-11-01.
- ^ a b c d Robin Respaut and Atossa Araxia Abrahamian (December 11, 2012), "Lawsuit seeks to settle score. Financier claims artist exhibiting 'buyer's remorse'", Chicago Tribune, sec. Business, p. 4, retrieved January 21, 2013
- ^ "Bowie bonds nearing junk status". Pinsent Masons. March 22, 2004. Retrieved January 21, 2013.
- ^ a b "Bankers Hope For a Reprise Of Bowie Bonds" Archived 2018-06-23 at the Wayback Machine, 23 August 2005.
- ^ McCrum, Dan (11 January 2016). "A short history of the Bowie Bond". Financial Times.
- ^ Moulds, Josephine (31 August 2012). "Bond investors see another side of Bob Dylan - but desire isn't there". The Guardian. London.
- ^ "Kobalt Capital Raises $600 Million to Buy More Copyrights".
- ^ "Round Hill Music Royalty Partners".
- ^ "Hipgnosis Soungs Fund Limited".
- ^ "The Music Fund".
- ^ "Alignment Artist Capital".