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Scooter Braun

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Justin Bieber‘s and Scooter Braun’s success has been inextricably intertwined since 2008 when Braun discovered the then-13-year-old singer on YouTube, got him signed to Usher’s record label and became his manager. Braun made Bieber’s career, and vice versa, and their once-flourishing business relationship was arguably the catalyst for Braun adding Ariana Grande, Demi Lovato, J Balvin, Idina Menzel and many others to the management roster at his SB Projects, and the subsequent sale of its parent company Ithaca Holdings to Korean K-pop entertainment giant HYBE for $1.06 billion in April 2021 and his appointment as HYBE America’s CEO that followed.

But since then, Braun has moved his focus away from his management business and onto growing HYBE, shepherding massive deals like its $300 million purchase of hip-hop company Quality Control in February. That shift is one factor that’s had Bieber actively looking at how he might extract himself from that relationship with the help of his new music lawyer, David Lande, and prompting Braun’s other star clients to exit as well, sources tell Billboard. Grande is also planning to part with Braun on friendly terms, more because she’s “excited to go in a different direction” and because she’s “outgrown him” than because of his C-suite distractions, a source close to her says: “It’s time for something new.” Menzel, Balvin and Lovato departed earlier this year, on good terms as well, sources say.

But even for the world’s biggest superstars, leaving your manager is easier said than done — and Bieber and his lawyer are still exploring all their options, sources tell Billboard, with a full split not guaranteed. Bieber’s latest moves have included firing his agency, CAA, and hiring a new music lawyer — Lande at Ziffren Brittenham — to replace Aaron Rosenberg, whom Braun had helped hire. (Michael Rhodes, a partner at the Cooley law firm remains Bieber’s general counsel.)

Lande, these sources say, has been looking at how to extricate Bieber from the management agreement with Braun, but there’s a major complication: Bieber is still under contract for about four more years, following a series of amendments to their deal made three years ago, sources say, and standard management contracts tend to favor the manager. To get out entirely free of obligations, an artist must often show that their manager breached the agreement — which generally includes acting outside of an artist’s best interests, such as financial impropriety like siphoning funds. And only in the most extreme examples does a manager being unavailable or unreachable count. (Were that the case, Braun’s team at SB projects would likely give him significant cover: Braun’s lieutenant, Allison Kaye, has been running management as president of SB Projects since 2016.) Sometimes there are performance metrics, but given Bieber and Braun’s stature in the industry, that’s unlikely, music lawyers say.

“If you’re talking about a case where the artist is just no longer content with their current manager and wants to get out of their management deal, they have a high bar to clear,” says entertainment attorney Larry Katz. “The only chance an artist would have is if they can demonstrate a well-documented pattern of failure by the manager.”

That said, many managers and lawyers agree that it is not in anyone’s best interest to hold an artist in a contract against their will. “Slavery is not a thing,” says one manager.

A scenario like this usually results in the artist and manager striking a new deal that involves a lump sum paid to the manager; a commission on future monies made from deals in which the manager was involved; a sunset clause that gives the manager a gradually decreasing percentage of earnings from such deals — or, likely, a combination of these.

Perhaps because of these complications, sources familiar with some of Bieber’s business dealings say he is focused on resolving his predicament with Braun and would not begin a serious search for new management until that objective is completed — or may not seek a new manager at all.

Otherwise, Bieber would need to shoulder the cost of paying two managers until his agreement with Braun either expired or was dissolved.

A new manager would also face limited options for finding new income opportunities. Bieber is still under a recording contract with Def Jam as he currently works on his seventh studio album, meaning there’s no new multi-million-dollar label deal on the immediate horizon. He also sold his publishing, artist royalties from his master recordings and neighboring rights to Hipgnosis for over $200 million earlier this year. And he remains under contract with AEG Presents, which has promoted his concerts since his inaugural My World Tour in 2010.

Under that AEG deal, Bieber likely owes the promoter any advances paid for his tours that haven’t been recouped. This would likely include an upfront signing fee paid to AEG to promote Bieber’s tours, as well as a per-show guarantee — some or all of which would be recoupable against the tour’s ticket sales. These financial obligations are usually settled somewhere between the early planning of the tour and while it’s in progress, but Bieber’s situation is more complicated. That’s because he has repeatedly rescheduled or canceled touring plans over the past three years due to the coronavirus pandemic and personal health issues, which could mean that his deal with AEG has yet to recoup its obligations.

Still, sources agree Bieber remains an appealing client, because of the kind of influence that comes with his superstar stature.

As for the status of Bieber and Grande’s relationship with SB Projects, sources close to Braun’s camp say both artists are under contract but are currently working out new deal structures to account for Braun stepping into his larger role as HYBE America CEO. Sources close to Bieber and Grande say they are also working out new deal structures for the many business ventures they undertook while at SB — in preparation for their potential departures.

“It might take several years for Bieber to wrap up whatever deals he has with Braun and SB Projects, but he’s still a very attractive client,” says a major talent agent executive unassociated with the artist. “He’s young, he’s a proven superstar and he’s motivated to work and make money.”

Additional reporting by Dave Brooks and Elias Leight.

Ariana Grande and Demi Lovato have split from manager Scooter Braun. Rihanna & A$AP Rocky have reportedly welcomed their second child together. Justin Timberlake is showing off his acting chops in the trailer for Netflix’s ‘Reptile,’ as *NSYNC is rumored to reunite in ‘Trolls Band Back Together.’ And more! Tetris Kelly:Scooter Braun loses some of […]

Idina Menzel parted with manager Scooter Braun at the beginning of the year, sources close to the situation tell Billboard, adding the actress and recording artist to the growing list of Braun’s clients who have recently departed his management company, SB Projects. Another source says the “amicable” split happened last year. Menzel announced she had […]

Ariana Grande has split with longtime manager Scooter Braun, sources close to the situation tell Billboard. Grande has been with Braun and his SB Projects since 2013, the year she released her breakthrough debut album, Yours Truly. News of the split comes the same day Billboard learned that Demi Lovato, who signed with SB Projects […]

Demi Lovato is seeking new management after splitting with manager Scooter Braun last month, sources tell Billboard.
Lovato signed with Braun and his SB Projects firm in 2019. She was previously managed by Phil McIntyre of PhilyMack.

One source close to the situation says it was time for Lovato to go in a new direction, even though she was thankful for her time with SB Projects. She does not yet have new management, though conversations are taking place.

Reps for Lovato and Braun declined to comment.

Lovato has released two albums since signing with Braun: 2021’s Dancing with the Devil… the Art of Starting Over, which hit No. 2 on the Billboard 200 albums chart, and last years’ pop-punk Holy Fvck, which scored a No. 7 on the chart. Since the start of her career in 2008, Lovato has charted 36 songs on the Billboard Hot 100, four of which went top 10. All eight of her studio albums debuted within the top 10 of the Billboard 200, with 2009’s Here We Go Again entering at No. 1.

On Sept. 18, Lovato will release Demi Lovato Revamped, which includes reworked rock versions of her biggest hits including “Heart Attack,” “Sorry Not Sorry” featuring Slash, “Cool For the Summer” and more.

Upon signing to SB Projects, Lovato shared on Instagram: “Dreams came true today for me…Couldn’t be happier, inspired and excited to begin this next chapter with you Scooter!!! Thank you for believing in me and for being apart of this new journey.” (All of Lovato’s pre-2022 posts have since been wiped).

Scooter shared on his Instagram at the time: “She is a special person and a special talent. I’m… we.. are honored. Welcome to the family Demi.”

SB Project’s artist roster currently includes longtime clients Justin Bieber and Ariana Grande, among others. Following a report Friday that Bieber was looking to leave SB, reps for both parties told Billboard that such “rumors” were “not true.”

J Balvin, who also signed with Braun in 2019, left in May and is now managed by Roc Nation.

Additional reporting by Dan Rys.

Ozuna has signed with Scooter Braun‘s SB Projects, Billboard has learned. The management deal is a partnership with Edgar Andino, founder and CEO of Andino Marketing Group. The Puerto Rican star joins a SB Projects roster that includes Justin Bieber, Ariana Grande and Demi Lovato, among others. The company also previously managed Colombian powerhouse J Balvin, who parted ways with SB in June 2022 and is now signed to Roc Nation.

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“We’ve been following Ozuna’s career for years and we’re excited to be bringing him into the family to work with him and Edgar,” Jennifer McDaniels, president of management at SB Projects, said in a statement. “Ozuna’s music is unmatched.  His ability to work across genres including reggaeton, Latin pop, and more, is phenomenal. With unique songs offering fresh perspective and beautiful sounds,  we’re thrilled to amplify his artistry with this partnership.”

“Working with Ozuna over these past years, one thing is for certain, we always go big,” added Andino.  “For us, Scooter and SB Projects align with our vision. They are the perfect partners to help in our continued approach and take Ozuna to the next level of his career. We cannot be more thrilled and cannot wait for everyone to see what we have coming next.”

A key figure in Ozuna’s team, Andino has helped the singer-songwriter land global deals that range from NFT collaborations to releasing a song for the Call of Duty video game. Most recently, he led negotiations for Ozuna’s inclusion in the FIFA World Cup Qatar 2022 Official Soundtrack, performing “Arhbo” with rapper GIMS. The uplifting song, which they performed at the World Cup’s closing ceremony, peaked at No. 1 Billboard‘s Latin Airplay chart.

In May, he released Afro, a seven-track EP where he experiments with Afrobeats. It followed his 2022 studio album, Ozutochi, which landed at No. 5 on the Top Latin Albums chart. Ozuna is set to embark on his Afro Tour across Europe this summer, which has 16 confirmed dates, including stops in France, Spain, Italy, Israel and Holland. The monthlong trek kicks off July 7 in France and wraps Aug. 6 in Spain.

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Quality Control Music, one of the most popular record labels in Hip-Hop, was acquired by Hybe America, the entertainment company helmed by Scooter Braun. According to reports, Quality Control Music was purchased at the price of $300,000.

The news was first announced on Wednesday (Feb 8.) by Hybe America and QC Media Holdings as reported by the New York Times. Hybe shared that the price of the acquisition includes both cash and stock holdings. Braun, one of the top music executives in the business, was named CEO of Hybe America in January. Hybe America’s parent company, Hybe, is based in South Korea and manages the K-pop group BTS.

“QC is one of the most significant independent labels in the world,” Braun said to The New York Times in a statement. “They not only distribute music, but they also distribute culture. Their artists are the voices of their communities.”
Quality Control Music was established in 2013 under the leadership of Pierre “P” Thomas and Kevin “Coach K” Lee. The label is the home of Lil Baby, Lil Yachty, and the Migos. According to P and Coach K, they are still the heads of the label but Braun will direct all business moves.
“We want to take our brand worldwide and need partners with mind-sets like ours — ground up, self-made and building companies from nothing,” P added in a statement regarding the new deal. “All of Hybe’s leaders are entrepreneurs with track records for finding, growing and amplifying their talent globally.”

Photo: Getty

South Korean music company HYBE has made a major entry into the U.S. market by acquiring Atlanta-based QC Media Holdings, the company behind hip-hop label Quality Control Music and a roster that includes Migos, Lil Baby, City Girls and Lil Yachty.
Founded in 2013 by CEO Kevin “Coach K” Lee and COO Pierre “P” Thomas, Quality Control will fall under the HYBE America umbrella and the leadership of its CEO, Scooter Braun. HYBE America encapsulates SB Projects, as well as Big Machine Label Group, which HYBE obtained through its 2021 acquisition of Braun’s Ithaca Holdings.

“Based on hip-hop, QC has been making a strong presence in the American music scene,” HYBE CEO Jiwon Park said in a statement. “With our shared vision, I have high hopes in what we can operate and achieve together.”

In HYBE, Quality Control gets a team with a history of building artists from scratch into global stars. “All of HYBE’s leaders are entrepreneurs with phenomenal combined history [of] finding talent and taking it to the next levels,” said Thomas in a statement.

“P and I are ecstatic about this partnership with Scooter and HYBE and are confident they can get us to our global ambitions we’ve had in our scope since the beginning of the company as nothing means more than our artists impacting worldwide,” Lee added. “Over many years, Scooter and I have cultivated real trust and a common way of looking at the world and culture.”

Quality Control expands Braun’s purview to a genre that has been missing from HYBE’s broad roster. SB Projects clients include Justin Bieber, Ariana Grande, Demi Lovato and Kid Laroi. Big Machine’s country-focused roster features Tim McGraw, Thomas Rhett and Rascal Flatts. HYBE has dipped its toes into hip-hop with Big Machine’s partnership with Blac Noize! Recordings, the label behind the 2022 summer anthem “F.N.F. (Let’s Go)” by Hitkidd and Glorilla.

HYBE dominates K-pop with artists such as BTS, the BTS members’ solo projects, Tomorrow X Together, Enhypen and Seventeen. In December, it launched a new Japanese imprint, Naeco, and signed Japanese singer Yurina Hirate. HYBE also has a joint venture with Universal Music Group’s Geffen Records and is developing an international girl group in the U.S. But the ambitious Korean company had a limited presence in the world’s largest music market until the 2021 Ithaca acquisition. Quality Control, Braun’s first major acquisition as HYBE America CEO, further diversifies HYBE and gives it a premiere hip-hop brand.

Quality Control’s recordings have been distributed through Universal Music Group’s Motown Records, which formed a joint venture with Quality Control in 2015 along with UMG’s Capitol Music Group. A HYBE spokesperson did not comment on the state of the joint venture following the acquisition. Quality Control’s Thomas noted that both companies have a relationship with “the Universal Music Group family of companies [that] makes this seamless,” he said in a statement.

In 2022, Motown/Quality Control’s overall market share rose to 0.97% from 0.90% in 2021. In terms of current market share — music released over the previous 18 months — Motown/Quality Control improved from 1.18% in 2021 to 1.33% in 2022. It had remained part of Capitol’s market share during that period, despite its ostensible status as a standalone entity. Capitol’s overall market share declined from 6.81% in 2021 to 6.40% in 2022 while its current share dropped from 5.64% in 2021 to 4.97% in 2022.

In 2022, Lil Baby had 2.97 million equivalent albums – a metric that combines sales and streams – and 4.3 billion on-demand streams in the U.S. in 2022, according to Luminate. His track “In a Minute” peaked at No. 14 on the Hot 100 in April and ranked No. 43 on the year-end Hot 100 Songs chart. Despite not releasing a new album in 2022, Migos had 2.9 million album equivalent units and 4.3 billion on-demand streams last year. Lil Yachty had 424,000 album equivalent units and 637.8 million on-demand streams. City Girls had 251,000 album equivalent units and 361.6 million on-demand streams.

The acquisition also broadens HYBE’s tech portfolio. HYBE built its own social media platform, Weverse, to create a direct connection with its K-pop groups’ massive fan bases. It also owns a controlling stake in AI audio startup Supertone. Last year, Quality Control’s Solid Foundation Management, the company’s artist management arm, invested an undisclosed sum in music streaming platform SoundCloud. “This partnership is a vital part of our plan to innovate the entertainment industry through a diversified portfolio and innovative technologies,” said Bang Si-Hyuk, HYBE’s chairman, in a statement. “We will work together to continue adding to the global depth of hip-hop.”

Additional reporting by Dan Rys.

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