Here Today... Gone To Hell!

Sanctuary seeks ?130m rescue
Jon Rees, Mail on Sunday
22 January 2006

MUSIC group Sanctuary hopes to announce a ?130m rescue package this week to shore up its finances as it risks breaching its extended overdraft limit.

The world's biggest independent record label, with artists including Morrissey, Guns 'N' Roses, Iron Maiden and The Strokes, is expected to announce a massive share issue to raise the funds. The placing is likely to dilute heavily the existing investors' stakes.

Sanctuary owes about ?120m to banking giant HBoS, which has agreed to extend its overdraft facilities by ?12m to ?134m, but only until the end of the month.

It has already warned that it will take a ?170m exceptional charge when it unveils its longdelayed annual results for the year to last September, which are due by the end of this week.

Those close to the company insist that Sanctuary can still survive if the fundraising does not go ahead. But the size of its debt means that its lenders could demand a debt-forequity swap if it fails, since without a further extension to its overdraft Sanctuary will find it difficult to continue trading.

On the plus side, the latest album from The Strokes, First Impression of Earth, is doing well and is likely to sell up to 500,000 copies, while Morrissey, the company's best-selling artist, is expected to launch an album in the spring that could sell up to 800,000.

Sanctuary also expects good sales from the forthcoming album from heavy rock band Guns 'N' Roses.

It will use any money raised through the share placing, which is being organised by broker Evolution Securities, mainly to pay down existing debts.

However, such a fundraising is likely to be deeply discounted and so will virtually wipe out the value of existing investors' stakes.

John de Mol, the entrepreneur behind television's Big Brother, is a key investor with a stake of just over 19%. Sanctuary is now worth about ?8m compared with ?200m two years ago.

It issued the first of a series of profits warnings a year ago after big delays releasing key albums.


Source: Thisismoney.co.uk (http://www.thisismoney.co.uk/news/article.html?in_article_id=406409&in_page_id=2) and TheNewGuns.com (http://thenewguns.com/MetaBB/viewtopic.php?t=2471&sid=bb6cd65f51d58902ef86ad04bc345d37)

Looks like they'll have a lot of money to promote GNR

This whole thing confuses me anyway - Geffen, Interscope and Sanctury all have a piece of GNR :confused:

Where are you reading that?



Ahw Johnny lost some of his money He just started a new television channel over here And almost no one watches it :peace: I really don't like that guy he really comes across as an arrogant sob.

Let's see if I can get rid of your confusion.

Geffen Records will be releasing Chinese Democracy....

Sanctuary are Guns N' Roses Managment Comany, as well as their Music Publisher.

Pay no attention the the mention of Sanctuary as a Record Label, GnR has nothing to do with that part of the company.

This is obviously a sad news for Sanctuary but great news for us as Chinese Democracy is coming "soon"...

Yes this year!!!

Well, the article says different.

Sanctuary also expects good sales from the forthcoming album from heavy rock band Guns 'N' Roses.

The world's biggest independent record label, with artists including Morrissey, Guns 'N' Roses, Iron Maiden and The Strokes, is expected to announce a massive share issue to raise the funds. The placing is likely to dilute heavily the existing investors' stakes

The quotes talk about sales from Chinese Democracy so I'd assume Sanctuary will somehow be involved in the release of the album. Maybe a join effort between Geffen and Sanctuary? I don't know.

Also, notice "the world largest independent record label" with artist including...GNR.

Morrissey, Iron Maiden and The Strokes are all under Sanctuary label aren't they?

the article really sound like Sanctuary is GN'R's label.

@ ppbebe    that would explain why sanctuary is hoping for chinese democracy to sell well. just as the management company they wouldn`t really profit from it i think.........

i guess anything is possible....

Yeah, i agree.. The article really tells that..
I remember Tommy told me in Oslo that Sanctuary was the label, but when i wrote
it here on the messageboard the Mods slammed that down. So i really dont know what
to belive. And for all i know, there may have been changes in the last year, who knows.. ?:confused:

wouldn`t sanctuary benefit from the da vince code soundtrack by the way??(if a gnr track is on there of course) i mean gnr songs on soundtracks in general?

Actually they would. Management companies usually get around 10% of all money made by whatever act they are managing. So 10% of however many millions CD is going to make is a huge ass number. That along with the money they will make from the publishing aspect and the tours that are sure to follow will make alot of money for Sanctuary. Plus don't forget that there is going to be 2 albums to be released. One this year and one next year (imho).

Agreed with chineseblues. I guess the main thing is Sanctuary hopes to get profits with the publishing aspect.

If GN'R was under the Sanctuary Records, they would announce something in a statement, like they did with the publishing thing.

   I think the publishing deal is what will bring in the bucks for management-since (as is my understanding) they will essentially now be getting axl's royalty cut.

This album will break the record sales when it's released. It will be giant.

It there really is an album in the future who actually can do that, i really belive that is the next Guns N` Roses album! Sure!
But i dont actually care about that! What i really care about, is that the band will deliver a new record that to me, and people interested
in Rock music, will love! And i really belive in the guys, and that they have done everything in theyr power to give us that gift! It will be so great!

Not exactly, they just get his publishing cut. Axl will still get his royalties from the sales of the album, he just wont get the publishing money if they put songs on soundtracks or whatever.

if they?re hoping for the publishing money, why would they bring up the ablum sales in this article?? i don?t think that`s really correlative...

In an industry and generation ruled by hip hop and r&B you sir have high hopes.  :rofl:

but there are other curious generations left....   and axl`s ruled by hiphop,too. : ok:

Thank you for clearing that up : ok:


Exactly. There's no way uni/geffen/interescope would let anyone else put this out, after all the money they invested.

unless axl doesn?t pay the money back : ok:

bear in mind that for more then a year now axl has been funding any recording costs from his own pocket.  : ok:


*edit* hope that doesnt mean a ton of loops from drumkit from hell and a pod hooked directly to his home laptop. lol

this might has led him to record in a proper way and not renting a studio for a year without even appearing there. perhaps axl?s now using the studio at his home (when was the last village studio sighting? :nervous:)? ?it`s safe to say that he isn`t spending 240$ a month for recording at the moment like he did 5 years ago: ok:

Such a move would imply very delicate tactics.
we are yet to know what's going on backstage. Or it's just the writer being mistaken.
We'll see.


Maybe by the end of this week.  :smoking:

Eventually, something's gonna have to come out and wipe that crap away, Guns is the band to do it, I honestly believe. This album should transcend genres...

Publishing is where the money is in music, not album sales.  Everytine an album gets sold, every time a song gets radio play, guitar tabs, played at sports games or anything like that, the person (or company) gets paid.

I really fucking hope you are right.

The music industry needs a good solid kick up the arse and I believe Mr. Rose and co are the only people I can see doing that in the next few years *fingers croseed*