Bruce Springsteen‘s the Boss alright … of the IRS, because the rock legend is gonna end up saving millions in taxes every year, courtesy of his record-setting sale of his music catalog … according to Daymond John.
The “Shark Tank” star gave us some insight into why Springsteen and several other huge music stars are unloading their master recordings and publishing rights to corporations — and turns out taxes are one major motivation.
Even before Sony bucked up big time for Bruce’s songs we’ve seen Bob Dylan, Stevie Nicks, Neil Young, Shakira, Imagine Dragons and others sell their tunes in 9-digit deals … although, only Dylan’s at $300 mil comes close to Springsteen’s half a BILLION.
As Daymond explains on Friday’s “TMZ Live” … obviously these celebs are already in the highest tax bracket, which means they’d be paying around 40% in federal taxes on their income from annual royalties.
Now those royalties go to whoever buys the catalog, and that’s the true brilliance of these deals. You’ve gotta see Daymond’s explanation, but basically, Bruce is about to cut his tax rate in half!!!
There are other motivators too — such as worldwide pandemics shutting down concerts and traditional revenue streams — but at the end of the day, Daymond says the name of the game, for Bruce and others, is securing steady income for generations to come.
Doing that while lowering your taxes … always a bonus!