BMI Pays Out $100 Million Sale Allocation to Affiliates
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As previously announced, BMI’s former shareholders allocated $100 million of the sale proceeds from New Mountain Capital’s acquisition of BMI in recognition of the creativity of the songwriters, composers and publishers they had the privilege to represent. Today, BMI was very pleased to pay out this allocation to our affiliates who qualified.
BMI carefully considered the parameters for the allocation in order to be as inclusive as possible and apply to the greatest number of earning BMI affiliates. The allocation is based on total earnings over a period of time and is not a traditional distribution of royalties.
BMI’s President & CEO Mike O’Neill commented, “It’s especially moving that our former shareholders closed out their chapter at BMI in this meaningful way, and I’m gratified that we were able to deliver these special funds on their behalf. As we embark on a bright new future with New Mountain Capital, we’re extremely excited to have the support and resources to explore new opportunities and build incredible value for our affiliates.”
Additional detail on the parameters for this allocation is available below.
What time period was considered?
BMI looked at the prior five-year earning period (2019-2023) to account for the natural fluctuations in music consumption. Both domestic and international earnings were used in the calculations.
Who was eligible?
BMI set a minimum threshold of $500, so that any current BMI affiliate who earned that amount during the earning period was eligible. In addition, members of international societies whose music is licensed through BMI in the U.S., as well as songwriters or composers who are no longer affiliated with BMI, but whose works BMI still represents were also eligible if they met the $500 earnings threshold.
How was the allocation divided?
The $100 million was divided equally, 50/50, between BMI songwriters/composers and BMI publishers.
How did the payout work for songwriters and composers?
Payments were structured in tiers based on the total earnings history over the five-year period. All songwriters and composers who fell within the same tier received the same payment.
How did the payout work for BMI publishers?
Publisher payments were allotted based on the individual publisher’s total earnings over the five-year period. All currently owned and administered publishers who met the $500 threshold were eligible. If a company has an administration agreement with another publisher, the administering company will receive the payment on behalf of the original publisher.
What if an eligible songwriter or composer sold their catalog during that time period?
If the sale took place within the five-year period, the payment was prorated and split between the new and previous owners.
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