Scooter Braun and Justin Bieber’s career have been intimately linked since 2008, when Braun found the then-13-year-old singer on YouTube, signed him to Usher’s record company, and became his manager. Their once-thriving business relationship was arguably the catalyst for Braun adding Ariana Grande, Demi Lovato, J Balvin, Idina Menzel, and many others to the management roster at his SB Projects, as well as the subsequent sale of Ithaca Holdings to Korean K-pop entertainment giant HYBE for $1.06 billion in April 2021 and his appointment as HYBE America’s CEO.
However, Braun has shifted his focus away from his management company and onto building HYBE, shepherding huge deals such as its $300 million acquisition of hip-hop company Quality Control in February. That shift is one element that has Bieber actively considering how he can depart the relationship with the help of his new lawyer, David Lande, and has prompted Braun’s other famous clients to do the same.
Any advances paid for Bieber’s tours that have not been recouped are presumably owed to the promoter. This would almost certainly include an advance signing fee given to AEG to market Bieber’s tours, as well as a per-show guarantee, some or all of which would be recoupable against ticket sales from the tour. These financial commitments are normally handled in between the tour’s early planning and during its execution, but Bieber’s situation is more problematic. This is because he has regularly rescheduled or cancelled tour dates in the last three years owing to the coronavirus pandemic and personal health difficulties, which could imply that his AEG contract has yet to be repaid.
Nonetheless, sources concur that Bieber remains an enticing client due to the type of power that comes with his superstar status.
According to sources close to Braun’s camp, both Bieber and Grande are under contract with SB Projects but are now working out new deal arrangements to allow for Braun stepping into his expanded role as HYBE America CEO. According to sources close to Bieber and Grande, they are also negotiating new deal structures for the numerous business operations they launched while at SB in anticipation for their prospective departures.
