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Blabbermouth.com: QUEENSRŸCHE...(are) attempting to raise $2 million by selling stakes in...a "new holding company for all things QUEENSRŸCHE" that will receive the revenues from its tours, merchandising, album sales and digital downloads.
For a minimum investment of $50,000, fans who pass an independent accreditation process can purchase an equity ownership stake from a private consolidated holding company that entitles them to "a fixed percentage" of future revenue...An internal board of directors comprising drummer Scott Rockenfield, bassist Eddie Jackson and guitarist Michael Wilton, (plus) band counsel Thomas Osinski, will oversee the corporation.
"Traditionally, a band would not go into their personal pockets to [bankroll and control a recording-and-touring effort]," (their) securities attorney...said. "They would go to Capitol Records" or the like, which would dictate the project and give them an advance but "also take a huge swipe of the money...By disintermediating the labels, we're leaving more money on the table both for the band and people who invest."
QUEENSRŸCHE's latest, self-titled album sold around 13,500 copies in the United States in its first week of release to land at position No. 23 on The Billboard 200 chart. The record arrived in stores on June 25, 2013 via Century Media Records.
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Not to be confused with what David Bowie did:
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Seattle Times: David Bowie...raised $50 million a couple of decades ago by selling bonds secured by future royalties on his music. But he didn’t sell equity in David Bowie Inc.
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"Disintermediated" record labels? It's more likely that the response to Queensryche's latest self-titled album (minus singer Geoff Tate and guitarist Chris DeGarmo) has caused Century Media Records to become dis
engaged, rather than disintermediated, from backing their next one. But that's no problem -- just round up 40 people who have $50,000 to burn on holding 20% of the holding company! But not just any 40 people:
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The stock deal Queensr˙che rolled out this month utilizes a provision of the 2013 JOBS Act that allows promoters to publicize a private stock placement, though only “accredited investors” — with a net worth of $2 million, not counting a home — are eligible to invest...
Queensr˙che was in legal turmoil for almost two years after lead singer Geoff Tate split with three other original members and both groups claimed the name. Once that dispute was settled in April, the three who got to keep the Queensr˙che name — Eddie Jackson, Scott Rockenfield, Michael Wilton — added singer Todd LaTorre and guitarist Parker Lundgren, and began planning the stock sale.
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On their crowdfunding site, they're calling it "Building The Empire." But while the lawyer is in for a full 25 per cent of the holding company, the newest members get nothing? The least they could have done was cut the equity pie five ways and given LaTorre and Lundgren half a slice.
Once word about this gets around, what's left of Queensryche will be lucky to be left with 4,000 fans. Meanwhile, all Geoff has to do is get a one-off record deal, do a tour based on his new material plus
Operation Mindcrime plus other Queensryche classics -- and his former colleagues will officially become just an overpriced tribute band.
A cautionary tale for Jon and Richie: Tread carefully -- both of you -- or this could be your future!