Rolling Stones’ U.S. tour astute business venture

Press, 16 January 1982, Page 21

Rolling Stones’ U.S. tour astute business venture

By

MICHELE ABRUZZI

in New York

Almost 20 years after they first instilled fear in many parents, the Rolling Stones now apparently pose more of. a threat as tough competitors to other businessmen than as corrupters of youth. The Stones have developed their musical style while honing their marketing skills so that their brand of rock and roll, which arrived with the British pop music invasion of the United States in the 19605. is selling better than ever. Long portrayed as sexobsessed punks linked to anarchy and danger, the Stones have’ recently been described in the American news media as “mellow.” “nearly middleaged,” and the “greatest rock

and roll band in the world." But colleagues who have worked with them describe the Stones as clever businessmen who are aware of every deal made for them as well as dedicated musicians who work hard to please their fans.

Their recently- concluded United States tour, in which they played before' more than two million people since the end of September, is reported to have been the most lucrative series of onenight stands seen in the entertainment industry. The tour itself is estimated to have grossed at least SUS 33 million and when record sales, T-shirts, royalties, and other items are included, the gross approaches SUSI2O million.

Besides ticket sales, the Stones are receiving several million dollars from the Jovan Corporation in what Jovan and spokesmen for the group say is the first such deal between a rock group and a corporation. Mr David Miller, advertising director of Jovan, would say only that the company’s sponsorship was “a multimillion dollar involvement."

Jovan is a Chicago-based firm known mainly for its fragrances, notably musk oil. It expects to report sales of almost SUSISO million for the 1981-82 fiscal year.

A television broadcast of one concert to 14 pay-tele-vision markets could add up to another SUS 6 million gross, according to an informed source involved with the production. Kai Rudman, publisher ol an influential programming guide for radio stations called “Friday Morning Quarterback,” estimates the Stones have earned an-extra SUSSO million for their recent album, “Tattoo You,” and recent related singles. He adds another SUS3O million for T-shirts and several million dollars for royalties, which must be paid each time a Rolling Stones record is played on the radio. Mr Ahmet Ertegun, chairman of Atlantic Records which distributes Rolling Stones records, estimates an entourage of 150 people ac-

companies the group on tour. The group pays to use each arena or stadium where it plays. Madison Square Garden in New York costs SUS3O.OOO plus 22.5 per cent of the gross over SUSI3O,OOO, according to Mr Rudman. Mr Ertegun, of Atlantic Records, said the Stones put on a great show. That cost them personally a lot of money. They spent that money because their primary wish was to entertain their fans. They could entertain without the firecrackers, balloons, expensive sets, and gimmicks. Apart from their desire to please their fans, the Stones are serious about making money. “All the deals they have ever made have been understood by all members,” said Mr Ertegun, who has worked with the Rolling Stones for years. “They have a very active role. They are well aware of what deals are made, licensing their names, logo, Tshirts ... what the gross is, what the net is and so on. "Mick Jagger is a very astute and intelligent person. He has a keen understanding of all aspects of our business.”

Part of the business is not touring too often, selectively leaking information about their plans and announcing events with a flourish. The 1981 tour was the first in

three vears. By the last concert in Hampton. Virginia. the Stones had played 47 concerts to a total of 2.5 million people, said a spokeswoman. Shortly before Jagger announced the beginning of the tour in Philadelphia, word “leaked” out of an impromptu Stones concert at a small club in Massachusetts. Several thousand people turned up and a melee developed outside. “That secrecy, sneaking round, people love that,” said a radio station programme manager in Providence, Rhode Island.

“Nothing about this tour has been normal. You do not sell out 60,000 seats in two hours,” he said.

A promoter in the New York area, where tickets were sold through a lottery, said, “The response was overwhelming ... we received well over half a million applications for 100,000 tickets.” In Washington, “scalpers” sold tickets for up to $250. Jovan, apparently anticipating that response, paid several million dollars just to put its name on tickets and to use the group’s suggestive logo, a tongue emerging from red lips.

“It took us about seven seconds to make up our minds,” said Mr Miller, about the company’s decision to sponsor the tour.