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1D have 50% stake in 5SOS (Confirmed)
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Details on One Direction's Secret Financial Investment in 5 Seconds of Summer
Quote:
When One Direction *members Louis Tomlinson and Liam Payne tweeted at fellow boy banders 5 Seconds of Summer back in February, announcing to their millions of followers that the Aussie pop-rockers had a new single out, casual observers may have chalked up the endorsement to chummy camaraderie. After all, 5 Seconds, which formed a year after 1D debuted on the U.K. X Factor, were represented by the same company, London-based Modest Management, founded by music industry veteran Richard Griffiths.
But relations between the two groups go deeper. According to multiple sources, 1D holds a financial stake in 5SOS. An Aug. 9 report in a U.K. paper was the first to make the connection, reporting that the five members of 1D, which also includes Harry Styles, Zayn Malik and Niall Horan, own a share of London-based company 5SOS LLP. Billboard has since confirmed that the registered partners listed for the company are the four members of 5SOS and One Mode Productions, whose directors include the five members of 1D in addition to Modest’s Griffiths and Will Bloomfield.
According to the documents filed at London’s Companies House, the split allots for 120 shares: 1D holds 50 percent, and the managers hold the other 50. Looking at 5SOS music sales so far, for instance -- 788,000 albums and EPs and 2.4 million song downloads sold, per Nielsen SoundScan -- that would amount to $250,000 in earnings for Modest and 1D, or $25,000 added to each 1D member’s bank account, Billboard estimates. Consider bigger revenue generators like merchandise, and 1D could see far greater returns.
Of course, that also means the members of 1D have an interest in growing the Aussie pop-rock band, which they have faithfully done. Tweets and public acknowledgements aside, 5SOS has benefited from a 66-date international tour ($277 million grossed since April 25, according to Billboard Boxscore) as 1D’s opener — a trek that has, as many ticket-buying tweens might contend, started to shift 5SOS’ status from warm-up act to more of a co-headliner.
The pairing is a no-brainer, says one insider privy to the arrangement. “The thinking is, ‘The bigger these guys get, the more money we make,’ ” says the source. “They’re going to put someone on as the opening act on the tour anyway, why not put somebody that they have a financial interest in?” Modest principals Griffiths and Harry Magee, who manage both groups, declined to comment, but in an interview with Billboard in March, Magee credited 1D as “early adopters of 5SOS” explaining that Horan and Tomlinson played the music to the rest of the band who agreed 5SOS should support 1D on their arena tour.
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Read more: http://www.billboard.com/articles/bu...seconds-summer
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what kind of slave contract is this