Orange County punk band Offspring is expected to sign a four-album, multimillion-dollar contract this week with Columbia Records, a division of Sony Music Entertainment.
The deal, which has been in the works since February, could be announced as early as Friday, although some financial details are still unresolved.
Representatives for Offspring and Sony Music declined to discuss details of the contract, but sources close to the talks said the band, whose last album sold a whopping 8 million copies, will receive an estimated $7-million bonus for signing with Sony. If the band's sales continue to soar, Offspring could earn an additional $3-million bonus before the contract ends, sources said.
Offspring will be paid an estimated $2.5-million advance for the first two albums and will receive a blue-chip royalty rate for each record it sells, sources said. For the third and fourth albums delivered under the deal, Sony will pay no advances or royalty rate and collect only a 25% distribution fee for each record sold.
Until last month, Offspring was required by contract to deliver its next album to Silverlake-based Epitaph Records. But sources said Sony worked out a deal with Epitaph to purchase the worldwide rights (except in Europe) to that recording for more than $6 million. Offspring's next album could be released as early as October on Columbia.