State Champ Radio Noah Assad
Grupo Frontera has signed a management deal with Habibi, Noah Assad‘s management firm, Billboard can report. Raymond Acosta, director of talent management at the company — which also includes Karol G on its roster — will lead Frontera’s management team.
The deal comes seven months after Frontera and Bad Bunny‘s massive collaboration, “Un x100to” — an irresistible cumbia, norteña track — peaked at No. 5 on the Billboard Hot 100. It was also up for song of the year at this year’s Latin Grammys.
Over the past two years, Grupo Frontera — previously managed by Victor Ruiz — went from local McAllen, Texas, band to a música mexicana global force. Composed of Adelaido “Payo” Solis III, Juan Javier Cantú, Julian Peña Jr., Alberto Acosta, Carlos Guerrero and Brian Ortega, the group broke out last year thanks to its tejano spin on Morat‘s 2019 single, “No Se Va.” The inventive cover scored the norteño group its first entry on any Billboard chart, ultimately peaking at No. 3 on the Hot Latin Songs tally (dated Nov. 12, 2022).
According to Raymond Acosta, Habibi was approached by Mexican hitmaker Edgar Barrera — who’s penned and produced for Grupo Frontera — and Alberto Acosta of Frontera after seeing the impact “Un x100to” had. “I asked Noah for an opportunity to get to know and study Mexican culture,” Acosta explains. “Because for me, identities are very important. One of my role models is Mr. Angelo Medina, he was the manager of José José and Emmanuel. He was the one who taught me [that] when you’re going to cross the pond, you have to know where you’re going.”
Grupo Frontera released its debut album, El Comienzo, via Barrera’s BorderKid Records label. The set bowed and peaked at No. 3 on the Top Latin Albums chart. In the past year alone, the group has placed eight songs on the Billboard Hot 100 — including “Que Vuelvas” with Carin Leon, “Bebe Dame” with Fuerza Regida and “Frágil” with Yahritza y Su Esencia. They have a distribution deal with Believe and own their masters.
“If you want to be the number one manager, your artists have to be number one,” adds Acosta. “I’m fulfilling my dreams by fulfilling the dreams of others. I think that’s the beauty of the management part. [At Habibi,] we don’t copy-paste marketing plans. That’s why when you see all the projects, none of them look alike. And seeing everything that is behind Frontera, the personality of each one and what they are doing, motivates us a lot.”
Additional reporting by Leila Cobo.
Karol G’s just-announced signing with Interscope Records had been rumored for months in Miami music circles, as far back as the release of her record-making album Mañana Será Bonito last February.
So when Interscope finally announced the signing on Monday, after what sources describe as a “lengthy” and complex negotiation, it wasn’t entirely surprising. However, new information indicates this is no ordinary record deal.
According to a source with knowledge of the negotiations, Karol G, whose real name is Carolina Giraldo Navarro, will actually be releasing music under her own imprint, Bichota Records, and will be distributed by Interscope and worked by the label. Moving forward, she will own her masters as well.
“It is one of the most ambitious deals signed by a Latin artist in recent memory,” says the source, who also said the deal is “valued at almost $100 million.”
The arrangement marks a departure from Karol G’s previous recording deal with Universal Music Latino, and seems to be more aligned with her manager Noah Assad‘s independent mentality. Assad’s other superstar client, Bad Bunny, records under indie Rimas and is distributed by The Orchard.
Karol G’s move from Latin label to mainstream label is still fairly uncommon, even at a time when Latin music’s success is growing to unprecedented levels both globally and in the United States. It follows news from April that Brazilian star Anitta signed with Republic Records, but also work with Universal Music Latin Entertainment. While stars who are signed to major labels have historically released their music jointly between Latin and mainstream labels, according to language — Shakira long released her English albums on Epic and her Spanish language albums on via Sony Music Latin, for example, and Enrique Iglesias released both on Interscope and Universal Music Latin — Karol G’s recordings will fall entirely under Interscope’s purview, with the label promoting and marketing her to both English and Spanish-language markets.
Even though Interscope doesn’t have a Latin division per se, it has a Miami office run by Latin music veteran executive Nir Seroussi and it works Interscope’s Latin projects, which also include Kali Uchis and Cuco.
Karol G’s signing to Interscope — much as with Anitta’s Republic signing — signals the Latin superstar’s intent to break into a mainstream U.S. audience and expand her brand globally even more than she has already. And although she has recorded in English in the past (in the track “Don’t Be Shy” with Tiësto) there are no immediate plans to release English language music right now, sources say.
“I’m continuously amazed at the support my fans give me, which motivates me to deliver the best of me, and I’m certain that this partnership with Interscope and their incredible team will help us continue building and making history,” said Karol G in a statement announcing the deal. “I’m thrilled to see what’s to come.”
Sony Music Corp. is in the process of helping Bad Bunny manager Noah Assad — the CEO of Latin music label and management company Rimas Entertainment — buy out his partner, Rafael Ricardo Jiménez Dan, a former Venezuelan government official who has a 60% majority stake in the company, sources familiar with the matter tell Billboard.
Rimas — which manages, records and publishes Bad Bunny — also has a label and management roster that includes Arcángel, Eladio Carrión, Jowell & Randy and Tommy Torres. The company was founded in 2014 in Puerto Rico and now has about 100 employees.
According to sources, Sony will participate in a buyout of Jiménez, who has not been involved in running Rimas’ day-to-day operations since 2018. That will result in a reshuffling of the company’s ownership and will likely leave Bad Bunny with an equity stake in the firm— and either Assad, or the combination of Assad and Bad Bunny, with majority ownership.
However the deal is ultimately financed, Sony itself is expected to wind up with a significant minority share in Rimas, which it will assign to The Orchard, its rapidly growing music distribution and artists/label services powerhouse that currently distributes Rimas.
Billboard estimates that Rimas Entertainment — the record label and the management company — has a valuation above $300 million without including the company’s publishing assets, which sources say are not currently being considered as a part of this transaction.
Assad and Jimenez, respectively, also have the same 40–60% ownership stakes in the music publishing assets, Jiménez tells Billboard. The publishing company, which includes some Bad Bunny songs and was launched by Assad, Jiménez and lawyer Carlos Souffront, is also up for sale. The sellers are seeking a $70 million to $75 million valuation for the overall publishing company, those sources add. As on the recorded music side, Assad plans to retain his stake in the song catalog, which means that the Jiménez stake could potentially fetch $42 million to $45 million.
Assessing a valuation for the publishing deal is tricky, sources say, because many of Bad Bunny’s songs are still widely popular, which makes it harder to calculate how much their plays will decay until they level off and become a predictable income stream, likely in a decade or two from now. As it is, the Rimas publishing portfolio —which is currently being administered by Universal Music Publishing Group — has about $5 million to $7.5 million in net publisher share (gross profit after paying songwriter royalties), a level it is expected to maintain over the next few years.
The music publishing portion of Jiménez’s Rimas holdings have been shopped to private equity players, sources say, and there is currently no known buyer. That’s in contrast to the hoped-for sale of the label/management holdings, which appears to have only been offered to Sony. However, sources wonder if Assad has matching rights on the publishing assets, which means that he could also arrange a deal to buy the Jimenez publishing stake if he matches the highest offer.
Jiménez is being represented for the expected publishing sale by Brian Richards, co-founder and managing partner of the investment advisory firm Artisan. On the record label/management side of Rimas, sources say Jiménez is being advised by Mitchell, Silberberg & Krupp partner Joel Schoenfeld, the former general counsel of eMusic and BMG’s senior vp of business affairs before that; and by Colin Finkelstein, the former CFO for EMI Music, who sometimes consults with investors on music assets and also owns and runs a few artist management firms.
Both deals are said to be very complex, and sources say they have been in the works for months — with some wondering whether the deals have been stalled due to friction between the two partners, Jiménez and Assad.
Another looming issue may be how much financial capacity Sony Music Group has to close deals right now. As Sony negotiates the stake in Rimas, it is reportedly also in talks to acquire part — or possibly all — of the Michael Jackson estate in a deal that could carry a valuation of $1.5 billion to $2 billion.
The question is whether Sony’s corporate leadership in Japan has signed off on the funding and the completion of both deals and if the costs involved in the deals might force Sony to choose to between them.
If both deals are completed, sources suggest that they would likely still need to be approved by regulators. Under the Hart-Scott-Rodino Antitrust Improvements Act, as of Feb. 27, 2023, any merger and/or acquisition that has a transaction value of more than $111 million — or if the contemplated combined entity will have total assets of more than $445 million — must file and seek regulatory approval.
Assad, Jiménez, Sony, Finkelstein, Schoenfeld and Richards either declined to comment or didn’t respond to requests for comment.
Additional reporting by Alexei Barrionuevo
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Few things faze Noah Assad, Bad Bunny’s manager. But even he admits that launching a stadium tour barely three months after an arena tour was a bit daunting.
“We knew it was going to be a learning experience and something none of us had done before,” Assad says now, “but we went for it and worked through it with the help of old and new partners and set new industry standards.”
Bad Bunny ends the year as the top touring act of 2022, grossing $373.5 million from 1.8 million tickets across 65 shows, according to Billboard Boxscore, and that number doesn’t even include his last 20 Latin American stadium shows. This makes Bunny — born Benito Martinez Ocasio — the first act who doesn’t perform in English to ever top the year-end tally.
World’s Hottest Tour broke venue revenue records in 12 of the 15 U.S. markets that it hit, including Chicago and Washington, D.C., and New York, where he played Yankee Stadium. All told, the North American leg of tour averaged $11.1 million per show – the biggest per-show average gross by any artist in any genre in Boxscore history (dating back to the late 1980s).
Bunny also became the only artist to ever launch separate tours each topping $100 million in the same calendar year. His stadium tour launched after he played his 35-date El Ultimo Tour Del Mundo, an arena tour that earned $116.8 million from 35 shows.
So, how did an artist who only records in Spanish, who is signed to an independent label and has only been five years in the market achieve this feat? To find out, Billboard spoke with agents, promoters and producers to piece together the ingredients of Bunny’s spectacular touring success.
The seeds for World’s Hottest Tour, which ends with sold out shows Friday (Dec. 9) and Saturday (Dec. 10) at Mexico city’s Estadio Azteca, were sown April 15, 2021, when tickets went on sale for Bunny’s April 2022 arena tour. The tour sold out in a matter of hours, says Jbeau Lewis, one of Bunny’s agents at UTA, with some 200,000 to 300,000 people in virtual queue in individual arenas trying to score tickets, and it became clear how much demand there was for Bad Bunny concerts.
“I remember vividly Noah having a discussion that day and saying, ‘We have to hold some stadiums for next year.’ We saw the unprecedented demand for [2022 arena tour] Ultimo Tour del Mundo,” says Lewis. “And knowing that tour was going to be nine months away and that Benito had plans to release more music, the only way to provide enough supply to alleviate the demand was to move to bigger venues. And that’s when we started working on it.”
Last year Assad signed on with Henry Cardenas of Cardenas Marketing Network (CMN), Bunny’s longtime promoter who was already doing his arena tour who’d been booking him since he played 1,000-people club shows back in 2017 and 2018 in cites like New York and Miami. Cardenas brought in Live Nation, which has vast experience with stadiums, as his partners in the U.S.
In the U.S., the biggest challenge was not the prospect of selling out stadiums; Lewis felt very confident that wouldn’t be an issue if they stuck to those markets where Bunny had strongest demand. Scheduling was the problem, given that the tour was being booked just 15-16 months in advance, and MLB and NFL teams already had dates locked down. Assad and Bunny were also adamant that he not play more than two dates per city, so fans wouldn’t think that one market was preferred over another.
In the end, they settled on 15 U.S. cities and tickets went on sale before the tour design even was finalized, something tour producer Roly Garbalosa says is unusual. “Normally for a tour this big, you design, then look for the markets. Not here. Here we just went.”
Bad Bunny hit road Aug. 5 with a massive production hauling his massive “beach,” palm trees, LED screens and of course, the contraptions needed for his flying stunt, where he gets on top of a small island with a palm tree and soars over the crowd, singing all the way. While a typical tour will take about 20 cargo trucks, Bunny traveled with up to 36, carrying 100 tons of equipment. While CMN and Live Nation promoted the entire U.S. trek of the tour, in Latin America CMN took over seven concerts. The others went to independent promoters Assad has long worked with in the past, including Bizarro in Chile, Westwood Entertainment in Mexico and Dale Play in Argentina.
“Noah has a code of honor,” says Fede Lauria, the founder of Dale Play, who promoted Bunny’s two shows at Velez Sarsfield Stadium in Buenos Aires. “I promoted Benito’s first tour here in Luna Park in 2016. This time, it’s been the biggest production I’ve ever done. We sold 90,000 tickets, but I would have sold 900,000. We sold out in half an hour. I had over a million people in virtual line trying to buy tickets.”
For Latin America, Bunny again insisted on his no more than two shows per city rule. He also insisted that his show had to be exactly the same as what his fans saw in the U.S. This is easier said than done. Usually, promoters will pay artists their guarantee plus the cost of local production. But Bunny couldn’t rely on local production for such a technically complicated show. Many countries and venues simply don’t have the equipment necessary to replicated what can be done in state-of-the-art stadiums in the U.S. And many local promoters can’t afford to pay the costs of importing production and still break even, especially in countries that are suffering from massive devaluation. So, instead of modifying the show to meet local production standards, “He took all his equipment, put it inside a 747 jet, and took it with him,” Cárdenas says. “And he paid for that.”
Even then, says Garbalosa, adjustments were required. Bunny’s flying stunt in the U.S. is done commonly by hitching the equipment to the lights and towers. Because many stadiums in Latin America don’t have that capability, “We had to rent cranes and place them outside the stadium,” says Garbalosa.
Bunny traveled through Latin America with the 747 cargo jet for his more than 100 tons of equipment; a passenger jet for his 130-plus crew and personnel and a private jet for himself and his immediate five-to-six-person team. And he paid those costs.
“No other artist does that,” says Cárdenas.” I will say it in plain English: He’s the only artist who invests that kind of money in his production in Latin America.”
What that decision translates to is less money for the artist. Shows in the U.S. make more because ticket prices are higher and the cost of production, in this case, can be far less.
“But he said, my fans deserve the same show,” Cárdenas says. “It will pay off in the future.”
In some ways, you could say it’s already paying off.
“I’ve been doing this for 30 years,” adds Garbalosa, the production manager. “I’ve never worked with an artist that creates this kind of frenzy.”
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