Jay-Z, Rihanna, Kanye West and another unidentified (although “well-established”) female artist, are entering into a relationship with Parlux Fragrances Inc in an unusual licensing deal.
According to WWD, the hip-hop artists are set to partner with the Florida firm via a deal with Iconic Fragrances LLC, in which Jay-Z is a major principal and Rihanna and West are licensees. Unlike in conventional licensing deals, though, rather than being paid solely from royalties, the stars will get royalties and profit sharing in the fragrance brands they launch. As quoted by Women’s Wear Daily, Neil Katz, chairman and chief executive officer of Parlux, said, “Jay-Z is betting these four celebrities are going to have a significant effect on the company, not only in sales but in profits and therefore in the share price.” The deals have already been signed with Rihanna and Kanye West. Jay-Z and the other unidentified female star (who, many suspect may be Beyoncé), are expected to sign after the Parlux stockholders have authorized the deal.
Expect Rihanna and Kanye West’s fragrances to launch in the summer of 2010 and Jay-Z and the fourth celebrity’s to debut in 2011.