Madonna is close to making A-Rod money.

The Material Girl and Live Nation are reportedly close to signing a 10-year, $120 million contract which calls for Madonna to deliver three studio albums and for Live Nation to exclusively promote the singer’s tours, sell merchandise and license her name.

Though currently 49, Madonna is showing no signs of slowing down, and even though the pact won’t be done until she is well into her AARP years, the Rolling Stones can attest to major artists still possessing drawing power into their 50s and beyond.

The deal marks the further decline of the prominence of record companies, which continue to suffer lagging CD sales. Artists are looking at all avenues to generate revenues, not just album sales, so the deal could be a blueprint for future arrangements between artists and companies other than record labels. In signing the deal, Madonna is leaving Warner Music Group where she had been for about 17 years. Warner reportedly was unsuccessful in trying to negotiate a similar deal with the singer, calling in Ticketmaster’s parent company IAC/InterActiveCorp as a partner.

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According to The Wall Street Journal, the Live Nation contract calls for “a general advance of $17.5 million and advance payments for three albums of $50 million to $60 million.”

In addition according to WSJ, Live Nation will pay $50 million in cash and stock for the right to promote Madonna’s upcoming tours, and the promoter will receive 10 percent of the gross and Madonna 90 percent. The two sides will evenly split revenue generated from licensing deals using the singer’s name, such as fragrances or other consumer goods or services.

Last Updated on September 4, 2009