LIVE Nation Inc. said yesterday it had signed a 12-year global contract to handle the merchandising, digital and branding rights of Irish band U2 in addition to an existing touring relationship.

The deal with U2, one of the world抯 biggest rock bands, came just five months after Live Nation announced a comprehensive partnership with pop star Madonna, which included her coveted recording rights.

But Live Nation said U2 will continue the band's long-term recording and publishing relationship with Universal Music Group.

"It's not a do or die situation that we have to be involved in the recordings,"said Live Nation chairman Michael Cohl. "We'd prefer to, but it's not always available.?

The company would not reveal financial terms of the U2 deal.

The deal with Madonna, which included the recording rights, was estimated to be worth US$120 million over 10 years including a three-album commitment after the artist submits her last album to her current music company, Warner Music Group.

Live Nation, which has managed U2's tours for more than 20 years, has been expanding its business model to develop more far-reaching and deeper relationships with artists beyond just handling their touring.

Its partnership with U2 will now include merchandise and licensing rights, sponsorship and strategic alliances, digital rights, fan club/Web sites and other marketing and creative services.

Cohl said the new model will help boost the overall company's profit margins. Analysts have said that touring and ticketing have traditionally been a low-margin business.

(SD-Agencies)