Magna Carta Records - Royalties & Copyrights

Own the sound recording copyrights and all related royalties for the Magna Carta catalog, which spans more than 30 years.

$570,000

closing price

Auction Closed

Top Bid: DAVID G

Historic royalty income is no indication of future royalty income. Future royalty income is dependent upon future sales and licensing revenue generated by the sound recordings or compositions associated with this listing.

Starting Price: $350,000
Bidding Increment: $10,000
Closing Price: $570,000
End Date: Jun 14, 2018, 3:04 PM MDT
Investment Term:

Life of author + 70 years

Last 12 Months' Royalties:

$104,321

Royalty Type:

Sound Recording Copyrights

First Payment: June 2018
Buyer Fees:

$500 Closing Fee

What rights are included?

  Musical Composition Sound Recording
Copyrights included? Yes
Rights:
Mechanical
Public Performance
Sync
Sales
Non-Interactive Streaming
Sync
Sources: Internet Streaming, AM/FM & Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements & Performances, etc. Internet Streaming, Satellite Radio, Digital Downloads, CD/Vinyl Sales, TV/Film/Commercial Placements & Performances, Samples, etc.
Distributors:

Description

Here is your opportunity to buy sound recording copyrights that have been earning royalties for more than 30 years.

This is the complete catalog of Magna Carta records.

More than 30 years ago, Magna Carta set out to create a record label that didn’t need to rely on major radio hits to succeed. This makes this catalog especially suited to the new world of streaming -- many of the more than 150+ artists in this catalog have devoted audiences that have followed them from CD to digital downloads, and now to streaming.

Since this is a sale of the sound recording copyrights, there are obligations to account for and pay artist royalties, if applicable. This sale includes the assignment of all of Magna Carta's recording agreements with its artists. Many of the artists were given advances that are currently unrecouped. A recoupment schedule is linked in the "Financials" tab for your review. The owners of the sound recording copyrights will collect 100% of the royalties during recoupment, and will then will earn the label's share of royalties if and when an artist is recouped. The artist contracts can be found here. 

Please email magnacarta@royaltyexchange.com to gain access to the folder.

These obligations have an upside though, unlike most of the deals we do on Royalty Exchange, the winner of this auction will have control over these copyrights. You can work to get these songs placed in TV shows, commercials, or elsewhere. If you wanted, you could also take advantage of the resurrection of vinyl to press limited edition versions of these albums and sell them to the artist’s fans.

Top Acts

Legends and creative newcomers alike occupy a roster that has thrilled fans for decades. The catalog features solo projects and collaborations with artists from the virtuoso, progressive rock, and thrash metal booms. These artists were key in establishing those genres and Magna Carta was an outlet for many to pursue their own creative directions. The catalog includes tracks from:

  • Kansas Frontman, Steve Walsh
  • Frank Zappa and Missing Persons drummer, Terry Bozzio
  • The “Van Halen" of the bass guitar, Billy Sheehan
  • Solo albums of Testament's Alex Skolnick
  • Celtic rock mainstay, Tempest
  • Billy Idol's guitarist, Steve Stevens
  • Groundbreaking progressive rock “Super Group”, Pinnick Gales Pridgen
  • Red Zone Rider featuring former UFO member, Vinnie Moore
  • Britain’s celebrated psychedelic, neo-hippie, prog instrumentalists, Ozric Tentacles

Press Coverage

Bass Player Magazine - Dug Pinnick

Guitar Player Magazine - Glen Drover

Guitar Xtreme Magazine - Michael Lee Firkins

Guitar Player Magazine - Eric Gales



Key Drivers

  • Magna Carta’s sound recordings have made a smooth transition from physical sales, to downloads, and now to the streaming world. Although their fans still buy large amounts of physical albums, the label has begun to capture new listeners through streaming channels like Apple Music and Spotify.

  • 98.3% of the catalog’s royalties come from songs that are at least 5 years old. This catalog is in the long-tail of earnings, the label’s operations have been winding down since 2014. The owners have stepped away from the day-to-day operations of the label and the royalties have continued. The owner is willing to stay on as a consultant to assist the buyer with the transition.

  • This catalog has never been worked for synchronization purposes. There is a big opportunity to get these tracks places in movies, tv shows, and commercials. Plus there are many instrumental tracks that are easy for music supervisors to synch. The owners created this page for future synch purposes.

  • The financial data for physical sales has not been verified by Royalty Exchange. However, the data for all digital revenue was retrieved directly from The Orchard, iTunes, and Apple Music.

  • The owners of the label are interested in offering the remaining assets of the business as a separate transaction for interested buyers.



What is being sold?

  • Sound Recording Copyrights for the entire Magna Carta catalog.

  • Assignments of all recording agreements between Magna Carta and its recording artists. 

  • Assignments of the current digital distribution deals that Magna Carta has in place with The Orchard and Apple.

Please email magnacarta@royaltyexchange.com to gain access to the folder.



Important Note

Because this is a copyright auction involving an entire record label, it includes rights and obligations not found in other auctions on Royalty Exchange. As such, it will require a custom purchase agreement to be negotiated between the buyer and seller within 30 days after the auction closes. 

Investors are responsible for completing their own due diligence and negotiating the purchase agreement for this auction. The buyer and seller will need to work closely together to finalize this transaction. Please email all questions and requests for information to magnacarta@royaltyexchange.com.



How does this asset make money?

Digital Distribution

  • The Orchard
  • iTunes
  • Apple Music
  • iTunes Match

Non-Interactive Streaming

  • Sound Exchange (uncollected for past 6 months)

Physical Sales

  • Amazon
  • Direct to Website
  • Vinyl Rights

Synchronization Rights 

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