Revealed: The Real Reason Justin Bieber Sold His Entire Music Catalog | Gita Blog Sport
Gitablogsport.com - Justin Bieber was reportedly on the brink of financial collapse in 2022, which led to his decision to sell his entire collection of earlier music for a staggering $200 million in early 2023.
The financial strain was allegedly due to mounting debts following the cancellation of his Justice World Tour in 2022, which he halted to prioritize his mental health.
This revelation is highlighted in the TMZ-produced documentary titled What Happened to Justin Bieber, now available for streaming on Hulu.
According to the documentary cited by the New York Post on Friday (May 16) selling his music catalog was Bieber’s only option to avoid bankruptcy, even though he had reportedly earned between $500 million and $1 billion throughout his career.
"Bieber had to sell his music catalog because he was going bankrupt," said TMZ’s executive producer, Harry Levin.
Levin added, "I spoke with several sources, and Justin’s camp confirmed that in 2022, he was facing what they called a 'financial meltdown.' That’s why he felt compelled to sell the catalog."
He also claimed that Scooter Braun, Bieber’s manager at the time, advised him to delay the sale until January 2023 to gain tax benefits. However, Bieber insisted on selling it immediately.
"Justin said, 'I have to sell it now.' And he finalized the sale in December. That’s how dire his financial situation was," Levin explained.
TMZ reported that Bieber could have earned an additional $90 million had he completed the world tour. However, he canceled the tour in September 2022, citing health concerns, and was subsequently required to pay compensation for the abrupt halt.
The documentary aligns with a report from the Hollywood Reporter, which referenced an interview with Merck Mercuriadis, the founder of Hipgnosis, the company that acquired Bieber’s music catalog.
"When there's money upfront, you're free to make plans without depending on others. You don't need to tour or record another album if you don't feel like it in the next few years," Mercuriadis told the Hollywood Reporter.
"For Justin, I believe that was the motivation. He was dealing with health issues, he was newly married, and deeply focused on his family."
"This deal gave him the flexibility to focus on what matters most, without being tied to the path he’s followed for nearly 15 years."
In January 2023, Justin Bieber officially sold all rights to his music released before December 31, 2021, to Hipgnosis Songs Capital for $200 million.
The acquisition includes release rights, master recordings, and royalty income for 290 of Bieber's tracks, including his 2021 album Justice.
Although the royalty rights for the masters have been transferred to Hipgnosis, the master recording copyrights still remain under Universal Music Group, Bieber’s longtime record label.
Furthermore, as Variety reported, any of Bieber’s future works including re-recordings will continue to be managed by Universal Music Group.