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Warner Music waved bye-bye to Madonna, and watched as concert promotion giant Live Nation signed her to a 10 year deal for $120 million.

She’ll get a general advance of $17.5 million and advance payments for three albums of $50 million to $60 million, and $50 million in cash and stock in exchange for Live Nations’s right to promote her concert tours, according to sources who talked to the Wall Street Journal. Those albums will have to sell around 15 million copies to recoup those monies. Unlikely.

Warner will keep the rights to the singer’s back catalogue and she owes them one studio album.

At 49, Madonna’s still a concert draw, and grossed $194 million during her 2006 Confessions tour. Live Nation would get only 10% of those revenues, but they do get the merch. rights–Madonna perfumes, Madonna ringtone, Madonna holy water.

Louis Hau in Forbes thinks this deal establishes Live Nation as a serious player.

Peter Kafka points out that Warner is so-o-o-o lucky.