PRS for Music and PRS Foundation have announced a new multi-year funding agreement, which will increase year-on-year funding allocated to PRS Foundation from 2024. With £2.5 million already allocated for 2023, the new agreement also establishes new measures to ensure the Foundation’s future financial security.
Since its creation in 2000, PRS for Music has provided funding in excess of £42 million to the Foundation, which supports new music and talent development. Set up to enable creators of all backgrounds to realise their potential, PRS Foundation supported 440 new music projects in 2022 alone.
Grants from PRS for Music to PRS Foundation are funded through income generated separately from royalties paid out to its members, including from interest earned on royalties awaiting distribution. The PRS Members’ Council reviewed the future funding of the Foundation and options to secure its ongoing activities, after interest rates below 1% and faster royalty payments led to a decrease in available funds. This review, alongside the increase in interest rates during 2022, led to the new funding model. The new deal will see funding determined annually, with the maximum which can made available growing year-on-year. In addition, 10% of the funding provided by PRS for Music will be used to strengthen the Foundation’s reserves.
Speaking on the new agreement, PRS for Music CEO Andrea Czapary Martin says, ‘PRS Foundation makes an invaluable contribution to the global success of the UK’s music industry, working with PRS for Music to nurture and support emerging talent in the songwriter and composer community. Over the last year we have worked very closely with them and representatives from across the industry to identify future funding models which provide both sustainability and growth, whilst maintaining the core principle of not arbitrarily deducting any such funding from royalties otherwise payable to writers or publishers. The changes in interest rates over the last year have undoubtedly aided these considerations, but the objective was always to secure a solution which protects the Foundation in the long term. The new funding agreement not only achieves these, giving them the better financial resilience in the future, but provides the opportunity for the Foundation to grow in the coming years.’
Joe Frankland, Chief Executive Officer at PRS Foundation, says, ‘We are delighted with the new multi-year funding agreement which allows the Foundation to sustain the level of grant support available to help thousands of music creators each year. The significant impact of our proactive and inclusive approach has been clearly demonstrated, and we thank PRS for Music for engaging with the sector to find suitable solutions. At a time where music creators face complex barriers to progression, PRS for Music’s long-term commitment to talent development allows us to respond effectively and build upon years of success together.’