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From the reggae rhythms of Bob Marley to the smooth groove of ‘Disco Inferno’, publishing rights to 26,000 top tunes were tucked away in Jersey until just three years ago, it has emerged.
You might think that the assets held in Jersey would be related to property, or perhaps priceless works of art or jewellery - but between 2007 and 2014, a company with the rights to many of the classic hits of every genre was registered in Jersey.
The intriguing detail has emerged part of the Paradise Papers investigation by the International Consortium of Investigative Journalists (ICIJ).
The protagonists in this latest chapter read like an unusually eclectic playlist: John Denver, Duke Ellington, Sheryl Crow, Kelly Clarkson, The Trammps, Evanescence and even ‘sk8er girl’ Avril Lavigne.
Pictured: Royalties from the catalogue averaged more than $4million per year.
Their songs all featured in a catalogue that generated around $4.6million per year in royalties over the course of seven years, as part of the First State Media Works Fund I.
In a document obtained by the ICIJ, KPMG described the arrangement as follows: “We understand that the fund is structured as an English limited partnership (the ‘partnership’) with investments made through a Jersey limited company. As such the partnership does not incur UK tax liability. In addition, based on the manner in which the fund operates in the US, it is not subject to US federal tax income on a net income basis. Distributions that the fund pays to relevant partners, and hence income and capital accrued, are subject to individual tax entitlements.”
As ever with many of the Paradise Papers 'revelations', there is no suggest of illegality.
Video: The ICIJ said that they were used to uncovering cash, real estate and often artwork in their investigations - musical royalties were something new.
Among the highest moneyspinners were a slew of 60s and 70s anthems, including John Denver’s ‘Take Me Home, Country Roads’ (1971) and Jefferson Airplane’s ‘Somebody to Love’ (1967).
But the biggest hit was the Trammps’ ‘Disco Inferno’ (1976). It generated £600,000 alone across 2009 and 2010.
The collection's Jersey story came to an end in 2014, when it was sold to Reservoir Media Management Inc. This came following a significant drop in worth - largely, KPMG say, due to the value of Sheryl Crow's music falling.
In case you need to be reminded, here are a few of the hits in the collection...
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