Sony Music have announced a new five year deal with Simon Cowell, who is probably more important to the music major than any band they've currently got on their roster, certainly in the UK.

Cowell's existing deal with Sony, structured around the Syco company and the 'X-Factor' franchise, expires later this year. The new arrangement will see the launch of a new joint venture company, jointly owned by Sony and Cowell, that will also use the Syco name. The new firm will get all the Syco assets in which Sony currently has complete ownership, with includes 'X-Factor' and those winners of past series of the show who are worth any money.

Some had speculated as to whether Cowell would do a new deal with Sony given his recent alliance with Topshop man Philip Green, which has led to the creation of a new fashion and entertainment company involving both men called Greenwell. Sony's statement says Cowell's share of the all new Syco will be owned by one of his other companies, which is presumably Greenwell. 

The deal means Sony giving up a healthy portion of its Syco assets in return for securing another five years of working with Cowell. The cards were obviously stacked in his favour on this deal - the Cowell machine has played an important role in helping Sony maintain its position in the music market, especially in the UK, and they'll have been very keen to keep him on their team.

That said, it's not just money and Cowell-created intellectual property rights Sony bring to the table, given he's keen to expand his business interests in the US and beyond, maintaining a link to the Sony infrastructure will be useful for Cowell also.

Confirming the new deal, Cowell told reporters this morning: "I have had a fantastic relationship with Sony for many years and I'm delighted we are launching this venture together".

Meanwhile, the great and the good from across the Sony hierarchy were wheeled out to welcome the new Cowell arrangement, all the way up to Sony Corp top man Howard Stringer.

Sony Music UK chief Ged Doherty says: "I am absolutely delighted that we have been able to extend our long and mutually beneficial partnership with Simon. He is an inspiring and stimulating business partner and working with him closely over the last ten years has been an absolute pleasure. With the launch of 'X-Factor' in the US, we look forward to replicating the unprecedented success the show has had in the UK globally".

Sony Music overall CEO Rolf Schmidt-Holtz says: "Over the past 20 years, Simon Cowell has been a great partner and is an integral part of the Sony Music global family. We are extremely excited to be able to continue and further develop our relationship with Simon, and significantly grow the Syco venture".

Sony Corp big cheese Howard Stringer says: "Simon Cowell is one of the most prominent and successful creative music and television executives in the entertainment business today. This new venture will allow Sony Music and all Sony divisions to develop and pursue a host of new opportunities with this supremely talented individual".