Samsung agreed to $5,000,000 in tour sponsorship and some of the costs are recoupable against ticket sales. If the tour bombs, as past tours have done, leaving Rihanna in the red (at one point Rihanna only had $20,000 in her bank account) Samsung will see no return on their investment, which will anger shareholders.
Considering Samsung hit a sales decline in the past two years, as reported in various stock market news outlets, they do not have $25,000,000 to throw around. The shareholders would be livid. Previously, Samsung agreed to buy 1,000,000 copies of Jay Z's flopped "Holy Grail" album that contained many copyright infringing songs. Jay Z's Samsung deal was worth approximately $2,500,000, but had deductions and failed to give Samsung an earnings boost. After taxes and associated fees, the deal did not create much revenue for Jay Z and did nothing for Samsung.
Not to mention, Samsung also has to answer to shareholders, who will be none too pleased. Rihanna and Jay Z also need to be careful regarding fake figures, as financial records are often subpoenaed in copyright infringement lawsuits and the truth will come out in that manner.
Jay Z and Rihanna, who are in the so-called Hollywood "Illuminati" (Kabbalah) are mimicking the crazy conduct of the head of the cult, Madonna. She repeatedly leaked false endorsement figures to inflate her image and net worth. For example, Madonna publicly bragged in articles and press releases that Microsoft paid her "$10,000,000" for a sponsorship deal, which prompted the company to come forward and say not even close and they paid her nowhere near that figure.
Jay Z and Rihanna
It is a federal crime in America to falsify the worth of companies and financial endeavors, as it deceives and defrauds existing shareholders and will do the same regarding members of the public, who seek to potentially invest their money. Real business people do not conduct their financial dealings in such a disgraceful manner. Only con artists, ponzi schemers and scammers do such things.
Side Bar: another item of note is due to Rihanna's foul behavior, she could find herself in the same situation cyclist Lance Armstrong did, where sponsor, the U.S. Postal Service, sued via the U.S. Justice Department, to recover sponsorship money they gave him, when the truth came out about his illegal, cheating conduct (steroids). Rihanna, Jay Z and Madonna are the music industry's equivalent of Lance Armstrong (or the financial equivalent of Bernard Madoff) due to mass criminal copyright infringement and other commissioned crimes they have been committing sure to taint any brand they are associated with. Any company that inks a deal with the aforementioned criminal entertainers would do well to beware, as there will be far reaching, long lasting financial and social consequences for it.
Rihanna inks $25M sponsorship deal with Samsung
The Rihanna deal follows seven months of talks and is the biggest music-marketing tie-up in recent memory. Hammering out the details took longer than expected in part because Rihanna made some last-minute tweaks to the album, sources said. Samsung couldn’t immediately be reached for comment, while Roc Nation declined to comment...
The company also cut a $5 million marketing deal with Jay Z’s Roc Nation in 2013, surrounding the release of the hip-hop star’s Magna Carta Holy Grail album, according to reports. In exchange for a $5 million check, Jay Z provided Samsung 1 million copies of the album to be downloaded on the company’s new Galaxy SIII and other devices...
The deal is bad news for marketers, said one source, noting that few have pockets deep enough to afford such multi-million dollar global tie-ups. “No-one wants to have $25 million deals in the market place,” said a source. But event sponsorship is a huge growth area. IEG notes that spending in the space will rise 5 percent in 2015 to $1.4 billion.
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