Eminem, Bass Brothers, Detroit, Investment, Royalties, Catalog, Royalty Exchange, Royalty Flow

By Nathan Vicar
@NathanVicar

(AMP) — The brothers who helped put Eminem on the map are giving you the chance to buy stock in Slim Shady’s music.

According to Billboard, Royalty Exchange has formed a new company and signed a letter of intent to buy at least a 15 percent of an income stream of royalties derived from Eminem’s music, with plans to buy other musical assets and take the company public.

The new company, Royalty Flow, is expected to file with the U.S. Securities and Exchange Commission to raise between $11 million and $50 million via a  Regulation A+ crowdfunding effort. If it’s successful in meeting its minimum funding target, it will then list with NASDAQ, provided it meets the exchange’s qualification.

Depending on how much money is raised, Billboard reports Royalty Flow will buy either 15 percent or 25 percent of an Eminem income stream based on royalties paid to FBT Productions, the Bass Brothers Company that often works and produces Eminem’s music, from the artist’s studio albums released between 1999 and 2013 via Aftermath Entertainment/Interscope Records. That includes albums like “The Marshall Mathers LP” and “The Eminem Show.”  The royalties also come from some Eminem tracks on side projects as well.

The Bass Brothers production team helped develop Eminem before he hooked up with Dr. Dre.  When they made a deal with Aftermath Records, they received a substantial piece of Eminem’s royalties from music sales, downloads, streaming and more.

The company will allow fans and smaller investors  the opportunity to invest directly in Eminem’s business through dividends paid by the company, once it is listed on NASDAQ. For its initial offering, minimum investment is $2,250 for 150 shares, which works out to $15 a share.

According to a press release, the Eminem catalog has sold 172 million albums worldwide, while Billboard reports Nielsen Music says 47.4 million of them have been sold in the United States.

The deal could set a model for future endeavors.

“If you’re a fan and wanna bet on that artist, you’ve got some skin in the game,”Martin told Bloomberg. “It takes the average investor and puts them in a position they wouldn’t be in before.”

 

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