Rock — one way to get rich quickly

Press, Volume CXV, Issue 33814, 10 April 1975, Page 4

Rock — one way to get rich quickly

According to “Forbes,” the business establishment's magazine, “the fastest way to become a millionaire these days in the United States is to become a big rock star." “Forbes" says that in 1974, “music lovers, who are largely the affluent between 12 and 32, shelled out around SUS2OOOm for records and tapes, plus another SUSISOm to see their favourites in concert.” This makes popular music the largest leisure-time industry in America, writes Jack Hafferkamp of the “Chicago Daily News” (through N.Z.P.A.) At least 50 superstars are earning between SUS2m and SUS6m a year. "Forbes” estimates. ‘The stars, 35 individuals and 15 groups, make from three to seven times more than Harold Geneen (of 1.T.T.). the highest-paid executive in the country " Of course, for every rock millionaire there are hundreds of kids and adults thumping away in basements. bars and even concert hails who will never do well enough to buy an extra pair of socks. But aside from the undisputed excitement, of the rock lifestyle, the thing that keeps them picking and grinning is the knowledge that all it takes to strike real gold is one “monster” hit. When Don McLean's “American Pie” was released, McLean was an accomplished but unknown folk singer. But for several months in 1972 you couldn't turn on the radio without hearing the song. In the end it sold about 4.500.000 singles and 1.800,000 albums. Just for his voice he earned over SUSIm; as the writer, he made another 2 cents a single and 12 cents an album; as half-owner of his publishing copyrights, he got 1 cent a single and 6 cents an album. Together, writing and publishing yielded SUS 160.000 Foreign sales and broadcast rights turned another SUS2OO.OOO. Deducting 10 per cent of the total for his manager and another 10 per cent for his booking agent, McLean's profit before taxes on "American P’e" teas about SUSI.2m. “American Pie" is an unusual record, but even that astronomical sum pales beside the mind-stretching figures generated b\ institutions such as Elvis Presley and the Beatles. Twenty years ago Presley released his first single, “B'ue Moon of Kentucky"

and since then he has become the king of rockrecord sales, with 27 goid albums and 55 gold singles. (Each grossed at least Sim).

He also has earned considerable sums as an actor (for a long time he earned a minimum of Sim a film) and for his stage . performances. In 1972, he played 30 stadium dates, all sellouts. plus, two stays at the Las Vegas Hilton.

Ranking just after Presley, the Beatles sold 85m L.P.s and 125 m singles. In less than the 10 years between the time the four were earning 52.50 each for a night’s work and 1971, when the group broke up. the Beatles earned up to SUSI 00.000.000 Even after the group disbanded, income from royalties and the various Beatles enterprises continued to roll in. In 1971 the Beatles earned over SUS24m. No-one can match Presley and the Beatles for total record sales, but several performers have managed to make substantial fortunes. At one point in 1968 Simon and Garfunkel had the top-selling single in the United States. “Mrs Robinson." and three of the top five best-selling albums. Their final effort as a team — Simon’s composition, “Bridge Over Troubled Waters" — was reported by the “New York Times" to have grossed SUS2Sm thanks to a multitude of cover versions by other artists It was the seventh multi-million dollar production in only five years. The all-time L.P. is Carole King’s “Tapestry.” It has been on the American charts for nearly 150 weeks, sold 12m copies world-wide, and grossed approximately SUS7Om. A numbei of other performers are guaranteed a gold record — SUSIm in -ales — even before the release arrives in the shops. Their reputation alone is enough to stimulate SUSIm worth of orders. This select group includes Elton John. Neil Diamond. Led Zeppelin. Bob Dylan, Seals and Crofts, the Allman Brothers. Al Green. Deep Purpie. Alice Cooper, and the Carpenter.-. When a group reaches that level of popularity, it develops so much muscle within the industry that it can write its own financial ticket When the Rolling Stones’ contract with Decca ran out in 1971, the Stones

signed for three years with I Warner Brothers, including' a reported SUS7Om ad-l vance, in return for two' L. a year. When Neil Diamond left! M. for Colombia, his! advance was said to be' SUSSm.

To make real money in| rock, a performer has to] sell both albums and) singles in vast quantities.] By that measure, the big-] gest money makers in 1973! appear to' be Seals and! Crofts, Elton John, and; Deep Purple.

John's 1973 income is re-j puted to be SUS7.Sm However, a considerable! proportion of the John mil-! lions (up to SUS3m a year); comes from live appear- ‘ ances.

As “Forbes” magazine put it, “No other type of' performance — be it starring in movies, a television series or nightclubs — can touch the concert game.” One Of the biggest crowd-drawing groups is Led Zeppelin. In May last year. 56,800 people paid SUSBO9.OOO to see the Zep lay down its sheet of heavy metal sounds in Tampa, Florida. The 33-city tour grossed nearly SUSSm, and on the reasonable assumption that a big tour helps to lift record sales, Led Zeppelin expected to gross more than SUS2Sm in 1973. What do rock stars do with it all? A few have tucked away millions, against the day when their records go stiff and they can’t stuff an auditorium with screaming fans. Like other big winners in show business, sports and “straight” business, they put their money to work in such establishment tax shelters as oil drilling, stocks, municipal bonds, apartment complexes, and shopping centres. Dylan is one of the careful ones. With his partners Dick Cavett and Johnny Carson of television fame he is said to own a New York City high-rise, among other things. And the Carpenters are said to own an apartment complex in California. But tar more rock stars end up broke than do actors, athletes and businessmen — probably because they're young, inexperienced, and vulnerable to rip-offs by smooth financial types . . . and because the "big money comes so very fast, and often burns out just as quickly.