Funds for the Road: Sound Royalties Supports Major Tours via Artist Financing

Mexican rock star launched two-month US tour with the help of a six-figure deal to support development of new live show at crucial moment.
 
Sound Royalties, the pioneer in providing artist-friendly premium financial services and funding for music creatives and rightsholders, has supported its first major tour as part of its new tour financing initiative. These funds can be used by artists and their teams to build and rehearse their show and pay for extensive upfront costs associated with hitting the road.
 
“After a two-year lapse of the income generated from being on the road, performing artists are feeling the financial crunch and are looking for financial backing to jumpstart their tours again,” explains CEO and founder Alex Heiche of Sound Royalties. “The right tour, coupled with the proper production can change the career and financial trajectory for musicians.  It takes money to make money.”
 
The launch partner for this new initiative is legendary Mexican rock star, performer, and composer Alejandra Guzmán, who turned to Sound Royalties to set her team up for success with her recent Perrísimas tour with singer Paulina Rubio. Sound Royalties assisted Guzmán with a six-figure advance to cover production costs and upfront expenses for the two-month U.S. tour at a time when getting in front of audiences was crucial for the artists. This allowed Guzmán to leap into action to catch what has been an intense, highly lucrative summer for live shows. LiveNation recently reported one of the highest quarterly audience attendance rates ever for Q2 of 2023, 33.4M fans.
 
The demand is there, but artists need support to meet it, especially in the context of high fuel prices, inflation, and supply chain woes. “Touring has always required investing upfront, but things are getting more and more expensive. Artists are feeling the inflation; gear, gas, tour buses, production, and staff are all going up,” notes Guzmán. “So, it’s great that there are viable options like Sound Royalties to advance some of these upfront costs before we start to recoup from the revenue of our shows.”
 
“Touring at this size is a big investment and comes at a high cost. Now that we are back after the Covid break, we are presented with a whole new set of challenges. We knew that financially, taking partial tour financing with Sound Royalties was the best move we could have made for the Perrísimas tour,” explains Guzmán’s manager Maurice Keizer. “It gave us the capital to ensure we had everything buttoned up for the shows and provided some added flexibility with our funds. You never know what can arise before you begin recouping tour costs with ticket and merch sales, no matter how successful the tour turns out.” 
 
Sound Royalties knows what artists face when it comes to financing their visions, of which touring is an essential part. Tour financing follows the same artist-friendly model as Sound Royalties’ industry-leading royalty financing but takes into account revenue stipulated in tour agreements and promoter contracts. “We hear from our vast base of artists, songwriters, producers, managers, attorneys, labels, and distributors daily and work hard to meet the need for more resources for music creatives at key times in their careers. This Tour Financing program came from doing what Sound Royalties does best: understanding and listening to the music community and then creating customized solutions to meet their funding needs.  We’re proud to have assisted Alejandra and her amazing team with this important project,” said Michael Bizenov, President of Sound Royalties.
 
“I tour a lot and I am no stranger to the large costs that go into production and live performances for high-quality shows. Our industry is facing a lot of issues, but there are solutions, too,” Guzmán reflects. “We were able to access upfront capital for the Perrísimas tour from Sound Royalties, and that gave us the flexibility to create the quality shows we wanted to deliver.”
 
Artists earning more than $5,000 in annual royalties or with contracts from major tour promoters in place can reach out to Sound Royalties about upcoming financing and tour needs via soundroyalties.com, at info@soundroyalties.com, or by calling 888-987-3224. 
 
About Sound Royalties
Sound Royalties, LLC is a specialty finance firm that helps music industry professionals fund professional and personal projects without ever taking ownership of their copyrights, allowing for ongoing royalty cash flow, and empowering creatives to choose from a variety of flexible pricing options. The company's core business is offering royalty advances of anywhere from $5,000 to the tens of millions of dollars. It does this by advancing artist, producer and songwriter royalties paid through music labels, distributors, publishers and PROs such as BMI, ASCAP, SESAC, SoundExchange and many more. Since 2014, Sound Royalties has worked with thousands of music industry professionals, from emerging artists and rising stars to GRAMMY Award winners, platinum recording artists and notable music industry executives, as well as music distributors and record labels in every genre. Learn more at https://soundroyalties.com.