Hipgnosis / Concord / Primary Wave Catalog Sale: Defer the Tax
The music catalog acquisition cycle is still rolling. Hipgnosis Songs Capital (post Blackstone-acquisition), Concord, Primary Wave, Round Hill Music, BMG Music Publishing, Sony Music Publishing, Universal Music Publishing Group, Reservoir, Influence Media, and Iconic Artists Group are all paying multiples of 12-25x NPS (net publisher's share) for evergreen catalogs.
A $8M catalog sale with $0 basis (self-created) = federal LTCG 23.8% + CA 13.3% + 1% MHS = ~$3M tax in year one.
The math: $8M catalog sale, songwriter
Catalog-sale deal mechanics
- Publishing rights vs master rights. Different buyer pools, different valuations. Sometimes structured as two separate transactions.
- Songwriter character election. Self-created songs are not capital assets by default; IRC §1221(b)(3) lets the writer elect capital-asset treatment (§1235 applies to patents, not copyrights).
- PRO income (ASCAP/BMI/SESAC/GMR) continues post-sale; treated as ordinary income (not capital gain). Affects net but not §453.
- Self-created intangibles have $0 basis. That maximizes the gain, which is exactly where §453 matters most.
- Performance royalties carved out vs included. Affects valuation but not §453.
- Producer royalty interests are valued separately.
- §203 / §304 termination rights. Catalog buyers price in termination risk.
What is the tax bill on your sale going to be?
Send me the sale price and rough basis. Within one business day I'll email you the actual number and the Seller's Guide to §453. If it doesn't fit your deal, I'll tell you that plainly.
No retainer · no obligation. Hans Goldstein, a licensed insurance agent (CA Insurance License #4273294), will contact you and may discuss insurance products, including annuities.
When this fits
- $2M+ catalog sale (carrier minimums)
- Songwriter / producer / catalog owner exiting (not 100% rollover)
- Sophisticated catalog buyer (all majors have done §453)
How I work
Hans Goldstein, IRC §453 specialist + working cellist. I converse in your manager's and music attorney's language about the catalog itself. Placements with highly rated life insurers (A or better by A.M. Best or equivalent) in all 50 states. Free fit-check.
Find out what your sale is really going to cost you in tax, and what you can do about it
No retainer. On a funded structure, the insurer pays a one-time commission of about 4% of the amount structured to the brokerage firm that places it (Hans’s share is about 2.4%; no trail). It is built into the annuity pricing, not a separate fee.
Find out what your tax bill actually looks like before you sell, including the parts your CPA may not raise until the return is already being prepared.
Most people find out what they owe after the sale closes, when nothing can be changed. A short conversation now tells you the number, which layers apply to your situation, and which options are still open while the sale is still in front of you.
- What you will actually owe: federal, the 3.8% surtax, recapture and your state
- Which of those layers you can still do something about
- Whether spreading the sale changes the number in your case
Hans Goldstein · 213-414-2808 · Hans Goldstein: Tax & Exit Planning · This is an educational conversation, not tax advice. Bring your CPA in before you file.
Hans Goldstein, a licensed insurance agent (CA Insurance License #4273294), will contact you and may discuss insurance products, including annuities.
Educational. Not tax or legal advice. Goldstein & Co. is not affiliated with or endorsed by Hipgnosis Songs Capital, Concord, Primary Wave, or any other catalog acquirer.
Run your specific numbers
The calculator runs your sale through real 2026 federal + state tax brackets and shows §453 savings vs lump sum side-by-side.
Run the calculator → 213-414-2808