Queensryche Are Asking Fans for “Investments” of $50,000
The group — which no longer includes iconic frontman Geoff Tate, of course — is selling up to 20 shares of its company for a minimum of $50,000 each, according to Billboard. Each investor will own a percentage of the company and participate in all revenue streams, so the more you buy in, the more you get. They’re seeking a total investment of $2 million
Such a tactic is common for sports teams — the New York Mets offered 10 shares of their team for $20 million each in 2011, for an ownership stake of 4% each — but I can’t ever remember a band conducting business this way.
It also reeks of desperation and intimates that Queensryche’s current financial situation is dire. When the Mets offered up $200 million of their team to minority investors, the club had just suffered through a losing season in which they lost $70 million, their owners were facing trial for reparations sought by Bernard L. Madoff’s victims, AND they’d just taken out a $40 million bank loan to cover operating expenses for the next few months. Certainly Queensryche aren’t as big an operation as the Mets, and $2 million isn’t close to $200 million, but adjusting for the relative size of each I don’t think it’s a stretch to say that Queensryche are in financial trouble. I’m just conjecturing here, but I’d gather that the four current band members are realizing how much their star has fallen since Tate left the band, and they’re in need of a cash infusion to continue. Raising capital in this fashion is something that companies do when they need cash and they need it badly.
On the other hand, it’s possible that Queensryche are genuinely trying to be innovative here by allowing fans to own their company, the way, say, Green Bay Packers season ticket holders each own a portion of the team. This method of fund-raising would allow them to operate completely in-house, without a record label, doing everything the way they want to do it.
Queensryche and their handlers are obviously banking on the emotions of nostalgic fans, many of whom are now getting on in years and presumably have some money to play with. I’d proceed with caution, because investing in a losing franchise isn’t necessarily wise, but if you want more information you can get it here.