Image: Duane Rossmann once had hair.
Publisher’s Note: Duane Rossmann, former Republican Precinct Chairman, former Chief Executive Officer of Conroe Regional Hospital, former Chief Executive Officer of Conroe Doctors Hospital, renowned health care consultant, successful businessman, husband, father, and grandfather, also happens to be a former hippy (as the photographs reveal) and a huge Bob Dylan fan. Therefore, The Golden Hammer welcomes his wisdom on the sale of the Bob Dylan music catalog.
Duane Rossmann, Guest Reporter to The Golden Hammer
Let me say that I am a huge fan of Bob Dylan. I have enjoyed his music, seen his performances and celebrated when he was awarded the Nobel Prize for Literature.
This past week he sold his catalog of songs to Universal Music Publishing Group for an undisclosed amount but “sources” say the deal was worth $300,000,000, a third of a billion dollars.
The December 8, 2020 edition of the Wall Street Journal printed an article about the transaction which was very enlightening. I decided to use Dylan’s own words from his song titles (In Bold) to describe the financial terms of this momentous sale.
Like many artists, Bob Dylan owns the copyrights to the songs he writes and performs. When they are played on the radio or through streaming services, he receives a royalty payment. It may be a penny every time a song is played.
As a 79 year old performer, he knows he is reaching the End of the Line(1988), so he decided to sell the stream of cash he has been receiving as royalties in exchange for a lump sum payment. The WSJ writer estimates that the sales price is 10 to 20 times Dylan’s annual royalties. If the reported deal is worth $300M that means Mr. Dylan has been receiving $10M to $15M in royalty payments each year. That’s a lot of cash Blown’ in the Wind(1963) to his bank account. But Don’t Think Twice It’s All Right(1962) he is a hard working performer and artist who thinks The Times They are a-Changin’(1963) so he decided to cash out before he is Knockin on Heaven’s Door(1973).
Like a Rolling Stone(1965) he and his advisors have looked Beyond the Horizon(2006) and see A Hard Rains a-Gonna Fall(1963) in terms of proposed increases to capital gains taxes under a Biden administration. Dylan knows he’s Gotta Serve Somebody(1979) but by finalizing this deal in 2020 he may save $42.6M in taxes. By a Simple Twist of Fate(1974) the proposed capital gains tax rate may be 38% next year compared to 23.8% in 2020.
When the Deal Goes Down(2006) Bob Dylan and his heirs will be happy When the Ship Comes In(1963). It Ain’t Me Babe(1964), I didn’t make these projections up they were all derived from the WSJ article. All I Really Want to Do(1964) is to show my hero, Bob Dylan, will be sitting on a pile of cash while he is rockin’ like a Hurricane(1975). I Can’t Wait(1997) to see what the next chapter of his life brings.
I can see Beyond the Horizon(2006) that he may bid us all Farewell(1963) and he will be Going Going Gone(1973) and at that point It’s All Over Now, Baby Blue(1965).
Thank you Bob Dylan, the Poor Boy Blues(1962) troubadour, you provided my generation with stirring words and melodies. Your riches are well deserved.