That'll buy a few judges' houses! X-Factor's Simon Cowell rakes in £86m after selling a slice of his Syco music empire to Sony... and his friend Sir Shifty cashes in too
- The music mogul has signed a new deal with Sony giving them a share in Syco
- His label ows the rights to X Factor and Britain's Got Talent acts, among others
- Shamed BHS boss Sir Philip Green also got a windfall due to his 10 per cent stake
- Sony paid £52.4million in 2015 and will pay another £33.4million by 2021
Simon Cowell has sold a stake in his entertainment empire for a staggering £86 million
Simon Cowell has sold a stake in his entertainment empire for a staggering £86 million in a deal that means a windfall for his friend Sir Philip Green, it can be revealed.
The music mogul, 57, has signed a new deal giving Sony a share in Syco, which owns the rights to the hugely lucrative X Factor and Britain’s Got Talent brands, as well as a number of successful recording artists.
Sony paid £52.4m in cash in 2015 and will pay a further £33.4 by 2021, newly released accounts show.
It is understood Cowell has received an incredible £45 million from the initial payment. His friend and business associate, the shamed retail tycoon Sir Philip Green, has also received a cut as he was a 10 per shareholder in Syco Holdings, the firm set up to receive the investments.
Other documents show the two men also received lucrative dividend payments from Syco Holdings: Cowell, 57, was paid £1.5m while Sir Philip – under fire for his role in the collapse of BHS - received £68,049.
Cowell – who has launched the careers of some of the world’s most successful pop stars – is already worth an estimated £340 million, according to the Sunday Times Rich List.
But the deal means he now only has a 20 per cent stake in the entertainment firm he set up in 2002.
He first teamed up with Sony in 2010, setting up a joint venture called Syco Entertainments - in a deal which was said to have earned him an estimated £27 million. Its first project was launch of a US version of The X Factor.
The company is now home to internationally renowned recording artists, including Little Mix, Susan Boyle, Ella Henderson, Il Divo, Fleur East and Fifth Harmony, while its television arm also includes Britain’s Got Talent.
It was announced in July 2015 that the deal would be extended by six years, until 2021, but the amount paid was not disclosed at the time.
The company is now home to internationally renowned recording artists, including Little Mix
Now, the Mail can reveal this contract was worth £86.5m – with Cowell receiving most of the cash.
Accounts filed this week for Sony Music Entertainment UK Ltd state that in July 2015, ‘the company acquired a 50% in Syco Holdings Ltd’ – one of a number of companies controlled by Cowell – ‘for a total consideration of £86,456,000’.
Of this, £52,405,000 ‘was paid in cash’, with the rest to be paid by 2021.
It means Sony now has a 75 per cent stake; Cowell 20 and Sir Philip, five.
The disclosures come at a trying time for Cowell, who has a son Eric, two, with partner Lauren Silverman, 39.
The flashy television personality, known for his trademark white T-shirts and slicked back hair, has seen profits in his production company, Simco, fall by £11million - a cut of almost a third.
Sir Philip Green, has also received a cut as he was a 10 per shareholder in Syco Holdings
The dip was blamed on releasing fewer records and falling record sales.
The disappointment came after 2015 winner Louisa Johnson failed to bag the coveted No 1 spot with her charity single cover of Bob Dylan classic Forever Young.
The record from the then 17-year-old became the lowest-selling winner’s single in the show’s history, peaking at just No 9 in the UK Top 40.
At the same time, audience figures for his talent shows X Factor and Britain’s Got Talent have plummeted to their lowest ever levels while Cowell is facing competition from a rival talent show, launched on BBC by Gary Barlow called Let it Shine.
ITV's own viewing figures show that Britain's Got Talent was the second highest rated show on the channel in 2016 – with a 12.5 million rating - whilst The X Factor was the third with a 10.1 million rating.
It was reported this week that Cowell had dropped plans to take legal action against Barlow amid concerns it was too similar to his programmes. He was advised such a case would be too difficult to prove, it was reported. Simon Cowell spokesman has not commented on the claims.
Meanwhile, one of Cowell’s most recent signings, rapper Honey G, did not even make it into the chart top 100 with her first single.
She was signed by Cowell’s record label, Syco, after making it into the quarter finals of the X Factor – despite being accused of being a gimmick.
A Syco Entertainment spokesman declined to comment.
Most watched News videos
- Piers Morgan's rant on mother who charged invoice for shoes
- Store owner in Connecticut pulls gun on armed robber
- Obama pays tribute to his family during his farewell speech
- Female bullfighter is mounted by young bull
- 'You can tell I'm a lame duck': Barack Obama receives a long standing ovation
- Plane lurches during landing at Leeds Bradford in strong winds
- Torvill and Dean appear on Piers Morgan's Life Stories
- Meryl Streep uses speech to call out Trump for his actions
- Biden was 'the best' decision I made: Obama during his farewell
- Witness captures moment Russian jets bomb Syria for first time
- Kellyanne responds to Seth Meyers on new Russia allegations
- Man uses Yellow Pages to call repairer for his Goggomobil
- It was me: Sworn Trump enemy John McCain admits HE handed...
- EXCLUSIVE: Ronda Rousey shows the strain as she is pictured...
- The moment a quick-thinking gun store owner pulls out his...
- Kremlin denies 'completely fake' claims that it has a...
- PIERS MORGAN: Sorry, Meryl but that hypocritical anti-Trump...
- Not impressed! Mel Gibson and Vince Vaughn glare daggers...
- Obama insists he's still 'optimistic' but takes aim at Trump...
- Kidnapped supermom Sherri Papini is pictured for the first...
- Autopsy reveals tragic new details of the life of girl, 10,...
- Now Meryl Streep is accused of being anti-Israel at the...
- All grown up! Chic Malia Obama attends father's farewell...
- George Michael 'tried to end his relationship with boyfriend...