Howard Stern’s contract with Sirius expires at the end of December 2020. Stern, who will be 67 years old in January 2021, has been negotiating a new contract for the better part of this year. His previous five-year contracts, which covered production and staff, topped out at roughly $80 million to $100 million. It is rumoured that his new agreement with SiriusXM would raise his pay to about $120 million a year.
Sirius shares climbed as much as 7 percent to US$5.95 in late trading after Bloomberg reported that the agreement was close. They had been down 22 percent this year. The new deal with Stern will probably be a comfort to investors, who have been jarred by the change in leadership and growing competition from online rivals Apple Music and Spotify. Those companies have been increasing their audiences at a much faster pace and have also made inroads getting installed in cars — long one of Sirius’s strengths.
$120 million a year is an insane number for anyone to turn down, but then again Howard Stern is very rich already. What’s another $120 million when you’re reportedly worth over $650 million?