The 49-year-old Madonna will reportedly receive an $18 million signing bonus, and $17 million advances for each of three albums, an anonymous source close to the negotiations said today.  The contract term is for 10 years.

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The source did not discuss the terms of the contract’s touring component, which stands to be quite lucrative for one of the music business’s biggest live draws.  Live Nation will have the exclusive right to promote the tours - not that it was in doubt – but will be required to pay $50 million in cash and stock to promote the tours.

According to the Wall Street Journal, Live Nation will own the rights to sell Madonna merchandise and license her name.  Revenue from such products would be split between the two parties.

Warner reportedly had a chance to match the deal and declined, again to little surprise.  The touring aspect of the deal falls well out of the company’s range of capabilities, making the money they would have to guarantee on the albums unfeasible.  After all, in today’s climate nothing is guaranteed when it comes to album sales, even if Madonna’s the one making it.

But the company did attempt to make a competitive offer, even partnering with Ticketmaster, which is owned by IAC/InterActiveCorp, to offer Madonna similar touring services.

Madonna has been with Warner since 1984.  She is still required to produce one more studio album with the label, and a greatest hits record.

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