Madonna 'preparing to seal new record deal'

Madonna is planning to sign a $US120m (€84m) deal with a new record company, it was reported yesterday.

The deal would see the US star leaving her long-term record label Warner Music for a recording and touring deal with live entertainment promoter Live Nation, a person familiar with the contract negotiations said.

The pop singer’s management informed Warner last week that she would accept Live Nation’s offer after the record company refused to match the deal, said the person.

Warner Music and Live Nation declined to comment.

A call to Madonna’s publicist was not immediately returned.

Under terms of the proposed deal, Madonna, 49, would receive a signing bonus of about US$18m €13 and an advance of about US$17m (€12m) for each of three albums, the person said.

A portion of the compensation would involve stock.

Madonna could also benefit significantly from the touring component of the deal, which gives Live Nation the exclusive right to promote her tours, the person said.

Madonna first signed with Warner Music Group subsidiary Warner Bros Records in 1984.

Her last contract with the New York-based company calls for her to deliver one more studio album and a greatest hits record.