Bowie made smart business decisions
LONDON: David Bowie secured his family’s financial future in the year he turned 50, it emerged this week.
Despite his huge success, the singer was thought to be close to bankruptcy in the 1970s with a string of bad business deals.
But an astute financial move in 1997 brought him millions, allowing him to buy back the rights to some of his most popular work from a former manager.
It meant that, when he died on Sunday aged 69, Bowie is believed to have left a fortune of £135 million (R3.2 billion) to his second wife, Iman, and his two children.
The Bowie Bonds scheme in 1997 gave investors the rights to his royalties for 10 years, before ownership of the songs returned to the singer.
Prudential Insurance Company paid the star £37m for rights to his first 25 albums, which were recorded before 1990. The scheme was put together by California-based banker David Pullman.
Speaking from his office in Los Angeles, Pullman told the Daily Mail: “The deal saw that the bonds were paid off and Mr Bowie then retained all his rights.
“He was astute financially and he had the foresight to have things set up then that would look after his family.
“He was smart enough to have confidence in himself. Most artists sell themselves short, and they don’t hold out for the rights. He was able to retain his legacy. His songs were his baby.”
Bowie wrote more than 700 songs, selling about 140 million records worldwide.
However, many of the singer’s biographers have claimed that, in the early years of his success, he had been fleeced by many of the people he came across in the music industry.
Such were his financial problems that is it thought he was almost bankrupt when he embarked on his 1974 Diamond Dogs tour.
In the years that followed, Bowie formed his own management company, Isolar Enterprises, based in New York.
Throughout the 1980s the firm allowed Bowie to have greater control over his business interests as he worked not only as a singer, but as a songwriter, actor and musical arranger. – Daily Mail