The insider told MediaTakeOut.com that earlier this year, 50 Cent was facing a serious cash crunch. Our source explains, “[50 Cent] was bleeding cash. Between the [50,000 square foot] Connecticut mansion and him financing the lifestyles of the dozen or so members of his entourage – he was spending millions.”
And touring, the leading source of income for the platinum selling artist, wasn’t bringing in what it should have. The insider tells, “Because of the size of [50 Cent’s] entourage and the amount paid out for security – he wasn’t making the money that he expected.”
As the expenses started to add up, 50 Cent was on the verge of a crisis. The insider explained to MediaTakeOut.com, “It wasn’t that [50 Cent] was broke. He had plenty of assets – just not a lot of cash … Eventually his accountants advised him to start selling [some of] them off.”
And sell is exactly what 50 Cent tried to do. Despite the difficult real estate market, he put up his Connecticut mansion for sale. He also sold a number of his luxury cars. And according to the source, he was exploring the idea of selling his interest in G-Unit records.
But before the platinum selling artist had to sell even one item, he was bailed out. Earlier this year Coca Cola announced a $4.1B cash offer for Vitamin Water – an “enhanced water” company which 50 Cent owned a minority stake. The deal, which closed in June, netted the rapper millions in cash.
50 Cent made a fortune in the deal. Our source told MediaTakeOut.com, “I’ve seen estimates that 50 Cent’s take in the Vitamin Water deal was somewhere between $100M and $400M. I can tell you from first hand information that he made in the neighborhood of $40M.” And the insider adds, “The $40 million in cash was more than enough to get him out of his predicament. Hopefully he’ll manage things more wisely in the future.”
Since the deal closed, 50 Cent has taken his Connecticut mansion off the market. He’s also taken all but one of his luxury cars off the market. The rapper’s silver Lamborghini is still up for sale here.
Sure it sounds believable at first but then you remember it came from MediaTakeout.
COMMENTS
rightttttttttttttttttt....
PSHH fifty been geeting that gwop
jokesta i see you with tha copy and paste my brother
Thus the source being listed at the bottom of the article...my brother.
wow what a reliable source..not
watch the dick riders defend 50.. watch look down
i fill u they act like they fuckin this nigga and getting some of his money. i day it could be tru it might not somethings add up some dont. but it my money so idont give a fuck if that nigga ennd up back in queens 2morrow.
haha all i know is this shit is bogus. 1
DID ANY1 READ FORBES THIS YEAR? HE WAS NUMBER 31 ON THE LIST OR SUM SHIT MEANING HE WASNT BANKRUPT IN ANYWAY. SOME1 NEEDS 2 SLAP THIS CLOWN FOR POSTIN THIS TRYIN 2 TALK SHIT B4 HIS ALBUM IS RELEASED HAHAHAHA SHUT UP!
lol jokesta i see ya
I doubt this is true.. it seems believable but at the end of '06, wasn't he worth 100 million? Def Sounds had an editorial on it. Forbes magazine also said he made $38 million this year, excluding the VitaminWater deal.
Hahah 50 actually got an exuse for starving buck,banks and yayo now.
Yayo's fat ass could ass could use a little starving
possibly true but probaly not
what better to suit a rumor than the name of the provider being "a person familiar with 50 Cent’s finances" and "insider"?
BULLSHIT!!!your sources are streight CLOWNS!!!
THINK ABOUT IT. JUST CAUSE HE MADE 38 MILLION LAST YEAR DONT MEAN HE DIDNT SPEND IT. IF U MADE 25,000 LAST YEAR U DONT HAVE ALL 25,000. AND IT COULD BE TRU HE SAID HE SPENT LIKE 4 MIL OWN BANKS ALBUM AND HE SPENT SOME MILS OWN OLIVIA AND MOBB DEEP ALBUM REMEBER THAT XXL ARTICAL HE SAID G-UNIT WAS LIKE 2MIL IN THE WHOLE AND HE SAID LAST YEAR ALONE HE SPENT 8 MIL OWN HE CREW THAN SUDDENLY CUT THEM OFF AT THE BEGINING OF THE YEAR BEFORE THE COCA-COLA DEAL.IM NOT SAYING ITS TR CAUSE NON-OF US REALLY KNOW BUT NUMBERS START TO ADD UP WHEN YOUR CREW DOESENT SALE RECORDS.
SmithTheChamp- you are the dumbest clown up here...I thought I told you to stop commenting...You are a complete idiot. You don't know shit about music and you don't know shit about finances either..Just stop talking. The story is complete bullshit..Do you even know what Bankrupt means?
yeah u dummie i never said he was bank rupped and i never said it was tru isaid it could be tru cause he has been mad spendin and nt makin money.i know what bankrupt mean you aint goota be brok to fil for bankruptcy donald trump fail for bankruptcy and he a billionair nigga i know what im talking about.
well atleast you know the ebay listing part is true... but trust he is worth more than 400 mil if he needed cash it would not be a problem
50 aint worth no 400 mil i doubt that just tell me where the 400 mil add up.
callowck — about 6 hours ago
watch the dick riders defend 50.. watch look down
And there you have it.....
just think, his clothin line sell good his game sold good he's gettin money from movies, vitamin water,mixtapes... his baby mama want mo money cause hes rich as hell... so, this is fake as fuck..
Dont tell me i dont know my facts.
Whether I got to give them $500,000 or $300,000 ... Just 'cause they want $300,000 more to make what they [are] doing at the time comfortable. Like, 'yo, I want to get this new place over here,' " 50 explained.
The magazine reports that 50 spent $8.5 million of his own money to take a lot of the rappers on his most recent tour, so that they could bring their entourages -- and so that everyone could travel, as he says, "comfortably."
Damn no wonder he wanted to cut G unit off.. He was going broke...damn 50 like to been the next hammer
Sounds like fif almost became mc hammer lol keep payin enough people for chillin and anyone will go broke if artists arent contributing you have to get rid of em
"I doubt this is true.. it seems believable but at the end of '06, wasn't he worth 100 million? Def Sounds had an editorial on it. Forbes magazine also said he made $38 million this year, excluding the VitaminWater deal."
"SmithTheChamp- you are the dumbest clown up here...I thought I told you to stop commenting...You are a complete idiot. You don't know shit about music and you don't know shit about finances either..Just stop talking. The story is complete bullshit..Do you even know what Bankrupt means?"
MC Hammer wrote this book. Yes it can happen, and this is not the only website that has reported this "rumor." It was also all over Detroit radio a couple of days ago. That does not make it 100% true but they included more facts. They stated that 50 Cent completely cut off Lloyd Banks and Young Buck. They also stated that Tony Yayo was still on 50's payroll, mentioning that the name "G-Unit" was actually taken from the cell block Yayo was housed in, hence 50's loyalty to his homie.
Even celeberties go bankrupt, ahem, Michael Jackson anyone?
CO-SIGN, SOME OF THESE NIGGAS ACT LIKE 50 IS GOD.
This is what def sounds need to be talking about 50 cent down talking lil wayne.
http://www.brightcove.com/title.jsp?title=1133276740
50 invented the mixtape, dude is so full of himself. u went from rapper to pop princess, of course u gon sell some records.
i don't htink he really ment "invented" as in completly but 50 was the first nigga to get big off of mixtapes n to drop consistant hot one ones n to flood the market bacc at New York...but yes your right...he did go to a lil pop but that nigga can still spit....
Also, 50's house was put up for sale and Detroit radio mentioned Tuesday that the house was still available via private market. The same goes for his luxury vehicles.
Supporting an entourage of 30-40 people is not cheap. His security, groupies, homies....shit adds up. I don't know why some of ya'll niggas think it's impossible for the nigga to go broke.
CAUSE FORBES SAID HE MADE 38 MIL LAST YEAR AND THEY THINK HE GOT THAT IN ONE CHUNK, THE DONT REALIZE IT TOOK HIM A YEAR TO MAKE THAT MONEY WHICH MEANS AT THEY END OF THE YEAR YOU PROBALY WONT HAVE 38 MIL. AND JUST BECAUSE YOUR WORTH 100MIL DONT MEAN YOU HAVE A HUNDRED MIL IN THE BANK THE ARTICAL CLEARLY SAYS HE STILL HAD ASSETS HE JUST DIDNT HAVE ANY MONEY WHICH IS WHY HE WAS SELLING HIS STUFF. ITS EVERTHING HE OWNS THAT MAKE HIM WORTH THAT MUCH SO IN ORDER TO GET THE MONEY HE HAS TO SELL IT WICH IS WHAT THEY SAY HE WAS DOING.START USING UR HEAD AND STOP DICK RIDEING.
^
Not to mention that grossing that amount of money places you in the top two percentile. He's in the highest tax bracket and contributes more to Uncle Sam in one year then everyone here on this website combined.
Assets - liabilities = net worth
lol nothing true in there ..Dont read this stupidity...Fuck off
"lol nothing true in there ..Dont read this stupidity...Fuck off"
I'm curious...did a 50 Cent bird fly to your window this morning and tell you otherwise? You may have possibly written more only if you stopped finger fucking the 50 Cent poster hanging over your bed.
Take some of your own advice.....fuck off.
@SmithTheChamp
You are a fucking retard...Forbes reported 50 made 38 mil in 06, of course he's been spending money through out the year, but what about the 80 + million the nigga made in the years before 06? You're goofy ass is talking like the 38 million he made in 06 was the only money he ever made in his life...8.5 million is nothing to somebody who is bringing in that kind of money...Not to mention how much of that he could use as a tax write off...Like I said before, You're dumbest wigger up here dick face...Go kill yourself.
Yes he did fly up to my window aNd he also said "Dont read this shit "
i know i smoked maybe too much but im sure of what i saw !|!! lol stupid NooB
Finga fuck ya self bitch nigga
the house in CONN is still on the market...The nigga was just on the radio saying he's moving to Atlanta...And everybody who reported this story got it from Mediatakeout.com...So what does the number of sites reporting this "rumor" have to do with anything if they're all getting it from the same source? You niggas are dumb dog shit and gullable as hell...Niggas could say Jayz and 50 are really martians and you dumb niggas would be saying "You never know, It could be true..he did survive 9 shots" LMAO...
50 aint made know 80+ mill in no year i aint never read that in forbes nigga. 50 only been on the forbes listb twice once for 41 mil and just recently nigga and if you read the xxl mag he said himself that the g-unit record lable is in the whole 2million dollars so he also been spending his own money on that shit thats why he droppd olivia. like i said nobody never said the nigga was broke he just aint have as money as he was rappin about that house in conneticute aint his only crib he got one in l.a. he bought hs baby moms a crib he bought tony yayo house no to mention all those cars he buying for those g-unit niggas. man all that shit adds up. u clealy a g-unit dick rider with your young buck pic thats closes you ever been to a gun.oh yeah and when they say he made 38 mil its reall 19 mil after axs trust me i know im in the movie buissnes i know how forbes report thay shit.
SmithTheChamp- How the FUCK does 38 million turn into 19? Are you fucking retarded? the highest tax bracket in the US is 35%...that would be 50%!!!...You a dumb ass cracker...And I aint say he made 80 mill in one year, I said in the previous years...He been selling records since 02! Since you cant count let me help you...that means he made over 80 mill with his music, his label, Gunit clothes, His movie and other investments between 02 and 05. Just because his name wasn't in Forbes doesn't mean he wasn't making money dick head...
What movies your punk ass been in? Stop fucking lying...That's almost as believable as this stupid ass story...go back to making sandwhiches at quik check!
i aint say im i movies dumb ass. i work behind the scens i aint say that 19 mil was the exact number i said around 19 mil dumb ass and 50 and everybody no u cant make money off of album sales especialy when he gotta pay em dre and jimmy, and just cause he said he made 80 mil on straight to the bank dont mean he really made 80 mil get ur head otu the clouds. man its hard to beleave that you ridin this mans cock that hard and with g-unit clothing he got bills to pay and the rest of the g-unit members got a stake in that and he has employees i aint never heard nothing about him makeing a lot of money of that clothing line and i already told you g-unit is mil in the whole get the xxl artical with 50 on it he says him self. look me up play boy www.imbd.com look up Lemarze Smith. youll find me.
SmithTheChamp
What the hell are you the "Champ" of? I know it wasn't a spelling B, You can't spell for shit...Couldn't have a counting contest, you bitch ass can't add...Stop commenting.
IM THE CHAMP CAUSE IM BETTER THAN ANYBODY AT ANYTHING ESPIACELY YO DUMBASS, DONT YOU GOT SUMMER SCHOOL OR SOMETHING GO PLAY IN STREET LIL NIGGA THIS GROWN FOLKS TALK ANY WAYS!
You never know whats going on behind closed doors! thats why he cut off the unit because them wack niggas was spendin more than they make and 50 almost took the fall for it i'm glad he came to his senses. I ain't a fan but i say do you 50. no hatin here.
SmithTheChamp -
Damn you are so fucking dumb!!!!! I have a some questions for your dumb ass:
- How is 24.7 mil and 19 mil close?
- How could a nigga sell over 11 million records and not make any money off of it?
- How could the same nigga sell over 9 million records the next time and not make any money off of it? Does your dumb ass REALLY believe all that money goes out in expenses?
-What about all the money from touring?
-Do you really think all the money he made off of his clothing line was paid out in expenses? are you really that fucking dumb?
Do you really believe "beleave" is spelled like that? You're a dumb shit cracker.
And for your information, I aint even a 50 fan like that. I can admit when he does put out good music though. I just can't stand crackers coming on hip hop sites making up dumb shit to try and disrespect black artists...This aint the 60's, nobody gives a fuck about what you think of our music, mind your damn business.
SmithTheChamp -
Damn you are so fucking dumb!!!!!( I have a some questions for your dumb ass: )
dont talk about my typing and you cant even say a sentence right.
first of all he sold 6 mill in the u.s.on his first joint and 4 mil in the u.s. on his second. u dont make as much money overseas as u do in america why do you think forieng people come to america. he proably end up making around 3 mill just of record sales on his first and 2 mill of the second so thats 5 mill all together. but dont forget out of that 5 mill he has to pay for, beats studio time, videos,promotions, and photo shoots, second when he goeson tour he has to pay for,travel,pay his crew, pay for speacial effects, and stage setting and security. you see how quickly, 38 mil can just drift away and like i said that clothing line isnt all that hot i sont even think its in the top ten. and he was only in two movies and they both flopped.now if you tell me u liked GRODT the movie somethings wrong with you i havent seen the other one.
Q.GRIFF, GOT DAMN YOU KILLES SMITHTHECHAMP IN DAT COMMENTING SHIT CUZ HAHAHAHA
I been bumping all the old 50 mixtapes before get rich,and power of the dollar,
SHIT, I HOPE HE EATS KANYE UP ALIVE WHEN THEIR ALBUMS COME OUT.
Smith the champ besides you getting facts wrong ^^^^^^^^^^
the only job you have behind the scenes in a movie is a production assistant????... a.k.a."bitch work" do NOT try to make that shit hotter than it is, you don't film, act, write, or effect the movie in anyway... YOU RESPOND TO COMMANDS such as, go get, and pick up..
this job does not place you in a higher tax bracket....not even close so when you made this comment.. "trust me i know im in the movie buissnes i know how forbes report thay shit." you being a production assistant???? gives you WHAT knowledge of how forbes reports anything.... negro you cant even proofread ya own shit and you expect us to believe what the hell you say..
then you took 38 million down to 19 million because of taxes.... half... are you serious.. do you have any idea how the finacial system works in this country???
i feel bad talking about your spellilng though b i can see it's a struggle ... but DAMMMMMMN homie... you don't spell anything longer than a 5 letter word right..
this is bullshit this website hates on any1 doing something right
Its funny how niggas always trying to discredit someone on the nets opinion of a rapper by callin them dick riders.Its not about be a dick rider, when you see dumb niggas on the net that will believe anything. Aint sayin 50 God. But that nigga a hustla he got too many investments thats doing well. lable, books,movies,ARTIST he makes more than them, deal with Youtube. Its like if this rumor was about someone you niggas like you would be on the other side of the argument but since its about 50 Yall niggas HOPING its true.. How can yall niggas hope for anotha mans down fall????? Dont get mad at him cause you broke. And dont have an ounce of Hustle in you. And the Source.. what a joke. Even if it was true what type of nigga or female is that. Its funny how in that article they tried to tie up all loose ends.. they Know most ppl make money off of touring.. O he pays a lot of money for security and entourage Lmao man they was layin it on thick as shit. Thats why he was sellin his house.. Houses are investments. cars when you get tired of em you sell em... Go ahead dumb ass niggas cop out and call me a dick rider because I'm not brainwashed over "rumors" or the first nigga who comments on the page
lollolol SmithTheChamp and Q.GRIFF are beefin .lol
LIKE I SAID IM NOT SAYING ITS TRUE IM NOT SAYING ITS NOT TRUE. ITS EVEDINCE TO PROVE THAT IT IS OR ISN'T, AND I DONT BEEF WITH NIGGAS I DONT KNOW, IM JUST TELLING Q.GIFF THE FACTS. WHAT MONEY HAS 50'S LABLE BROUGHT IN SINCE 04, AND THEY DO HAVE TO PAY THAT MONEY BACK IN FINANCES DUMB ASS EVERYTIME HE SHOOTS A MILLION DOLLAR VIDEO HE HAS TO PAY THAT BACK AND TOURING EVEN IF HE MAKES A MIL A SHOW HE STILL HAS TO PAY RENT COST AND WHATEVER PYRO OR OTHER EFFECTS HE HAS AND HE HAS TO PAY THE PEOPLE ON TOUR WITH HIM. WICH COMES OUT OF HIS MILL, TRUST ME I KNOW I DID A SHOW WITH NEEL AND THE ST LUNITICS HIS MANAGER TOLD ME EVERYTHING AND JUST TO LET YOU KNOW THAT WAS THAT WAS LIKE MY FIRST JOB AS A P.A. I DO WRITE NOW AND A CAST ACTORS THANK YOU WHERE DO YOU WORK 7/11. MAN I LOVE HOW EVERTIME I SAY SOMETHINGABOUT ONE OF YALL POSTER BOY ARTIST MOST OF ALL YALL NIGGAS JUMP ON MY DICK AND CALL ME A WHITE BOY. JUST GIVING ME ALL YOUR ATTENTION. YALL NIGGAS SO EMOTIONAL ABOUT THIS SHIT MAN I FILL LIKE EVER SINCE I JOINED THIS I CONTROLL MOST OF THE CONVERSATIONS THAT BE ON HERE I SHOULD GET MY OWN T.V. SHOW OR RADIO SHOW OR SOMETHING. LIKE YOUR BOY 50 SAID YALL NIGGAS LIKE LIFE SIZES PAWNS YOU JUST FEED INTO EVERYTHING YOU THE FOURTH NIGGA THAT THAN TRIED TO START SHIT ON HERE WITH ME. OH AND I CAN SPELL CIRCLES AROUND ALL YALL, IM NOT ABOUT TO SIT UP HERE AND SPELL CHECK FOR SOME IGNORANT NIGGAS MAN.
chill with all these fucking paragraphs. no one wants to read that. keep it short and sweet or else no ones gonna read it. i know i just saw all those words and glanced right over it.
its impossible for 50 to be poor at the moment.maybe when he's Mike tyson's age and blown it all on his friends.Tyson blew 300mill.
But 50's got too many assets and businesses,and do you fools realise how much interest you get on 100,000,000 dollars in the bank? around 6% that means 50 is getting around 6million just for having his money lying around in the bank.
Only a dumb mo'fo would blow all that,and 50 ain't one of them
I dont think he got 100 mill in the bank i think he just worht that cause all the buisness he own i could be wrong.
this nigga wrote half a story i guess champ maybe got his shit straight .
OH and since u so concerned about my career why dont u take a look at my brothers catalog who i work under as a personal assistant sometimes the reson why i only have one film to my credit. and i just started the biz in late october of 06, and im only 20 years old, look under curtis smith(2). and i aint got no beef i just like proven my point when i aint got shit else to do which why i signed up on here to see how many people i can iretate before i go back to work next month.
im no 50 cent fan, but the dude wasnt going to go bankrupt he was just using more money then he was making, he was selling some of his 9 cars he had and other assets just to balance out for the amount of income dis year. He just got money from that water, and Curtis is comin out september. This nigga still ballin
Smiththechamp is bitch made to the max
in here, arguing over another nigga's money
get a life you fucking clown
IM JUST GONE CALL U MY 5TH BITCH YALL NIGGAS REFUSE TO GET OFF YALL KNEE'S WHAT CAN I SAY I GUESS U GOT BOW TO THE CHAMP.
iretate,; reson...
what happened to spelling circles around us..
start shit?? no one's starting shit with you... you just make it mad obvious with shit you don't know about..
like 50 paying for pyrotechs' at his show... the venue takes care of that.. 50 brings the people & money to the venue, what makes you think 50 pays for his own video... like the label would'nt pay for that....
"TRUST ME I KNOW I DID A SHOW WITH NEEL AND THE ST LUNITICS HIS MANAGER TOLD ME EVERYTHING AND JUST TO LET YOU KNOW THAT WAS THAT WAS LIKE MY FIRST JOB AS A P.A."
-nigga no you did'nt that would of made you like 17, a 17 year p.a.... kiss my ass a p.a. is entry level job.. and you prove that shit with HORRENDOUS grammar and dumb ass statements...
killyoself
FIRST OF ALL I WAS A P.A. WHEN I WAS 16 YOU DUMB SHIT MY BROTHER IS A FIRST A.D. ITS CALLED PULLING STRINGS AND I WAS 19 GOING N 20 WHEN I DID MY FIRST MOVIE AND I NEVER HEARD OF AN AGE REQUIERMENT TO BEING A P.A. IM GONE CALL U NUMBER 6. AND YOUR DUMB IF YOU DONT THINK THEY DONT HAVE TO PAY FOR THEIR OWN VIDEOS THEY DONT PAY UP FRONT BUT WHEN THE ALBUMSTART SELLING THE FUNDS COME OUT OF THE CHECK WHY DO YOU THINK THERES SO MANY BROKE RAPPERS NOW DUMB SHIT.FOR THE LAST TIME HOPE OF MY DICK YALL. SHIT I FILL LIKE 50 I GOT SO MANY NIGGAS ON HERE HATING ON ME. THIS IS THE BUISSNIES IM IN DONT TRY AND TELL ME SHIT.
ALRIGHT LOOK AT THE LLOYBANKS RETIREMENT THING NOW THIS, SOMEONE TRYING TO STOP 50 FROM SELLING 91107 SHIT IS CRAZY. SO WHAT IF HE WAS ABOUT TO GO BANK RUPT HE DIDNT END OF STORY FUCK RUMORS 50 LET ME HERE IT. IGET MONEY II GETIT
10 MILL SOLD A GAIN
believable. it makes sense. he bit of more than he could chew with all his luxury shit and he had to start makin some cuts.. what he SHOULD be doin is cuttin them wack-ass jokers out of his crew (i.e. mobb deep, yayo, m.o.p)
i know banks ain't bringin in that much money right now, but those three aforementioned aren't bringin in what banks brought in all TOGETHER.
to some my six fans that think they know shit talking about you dont have to pay for videos:
INDIE LABEL VS. MAJOR LABEL
Indie Label (See Also, Major Label)
By the purest industry definition, an independent label is a record label that is not affiliated in any way with a Major Label, and uses independent distributors to get their releases into stores.
Note: For an in depth article on the types of relationships that exist between independent labels and major labels see the chapter I co-wrote with entertainment law attorney Bartley F. Day in the excellent resource book The Musicians Business and Legal Guide, 3rd Edition, published by Prentice Hall.
When you think about pursuing an independent record label deal, think about the following issues:
DISTRIBUTION
Make sure the label has a solid distribution deal on a national level. Be sure to check on the relationship between the label and their distributor(s). Ask some questions like:
How many records has the distributor sold of the label’s product?
Did the label have any problems getting paid by their distributor?
What kind of working relationship do they have with their distributors on their new releases?
Does the label have a budget to pay for some co-op ads, and in-store promotions through their distributor?
ROSTER
Make sure the label’s roster isn’t too big, or else you won’t be given the attention you deserve. Also, make sure the bands on the roster match the type of music you play.
PUBLISHING
If the label has an affiliated Music Publishing division, and wants part of your publishing, don’t be surprised, but be sure your attorney protects as much of your publishing royalties as possible. Never allow a label to recoup any monies advanced to you for the recording of your record from your mechanical royalties. (This is the money owed to the songwriter and music publisher of the songs you wrote on your record, for the sales of your record.)
MERCHANDISE
Merchandise deals are deals made by your attorney outside of your recording contract, for your likeness to appear on t-shirts and other clothing and objects. If the label wants a percentage of the income from such a deal, you may have to negotiate how much they get.
OPTIONS
Find out how many options the label wants. Since “options = number of records,” you don’t want to agree on too many options.
INDIE PROMOTERS and/or IN-HOUSE STAFF
Find out if the label works with independent radio and/or retail promoters. It’s a good sign when they do; this raises the chances that your record will be seriously and effectively promoted.
ADVERTISING
Find out if the band has an advertising budget for releases.
TOUR SUPPORT
Find out if and how they support you on your tour (financially, morally, etc.) and how much of any advances for touring are recoupable.
POINT / PERCENTAGE of the LIST PRICE You Receive
Find out how much you get paid for each record sold. A new act usually gets somewhere between 10-15% of the suggested list price of a recording. (Remember too that out of your percentage, you must pay your producer their percentage, for producing your record.)
Major Label
By industry definition, a major label is a label that commands a high percentage of the annual sales of records, and has their own distribution system. ( The Big 5 distribution companies currently are: WEA, BMG, SONY, UMVG, and EMD.)
When pursuing a major label deal be absolutely sure that this is what you really want. Here are some points that might help you determine if this is the right thing for you to do:
OPTIONS
A major label often signs artists for six to eight records (not years).
A&R
Research the A&R person. Know whom they’ve signed, who they’ve worked with, who they’ve worked for, and how long they have been employed.
NUMBER OF RELEASES
Find out how many records the label releases per year. You don’t want to sign with a label that releases too many records. Remember, they only have so much time and enthusiasm to put into the promotion of each record. Many major labels have between 12-25 releases coming out each month.
Here are some clauses that you will encounter (and sometimes have to watch out for) in a contract with a record label:
EXCLUSIVITY
Every record contract includes a provision stating that the deal is “exclusive.” In other words, during the term of the agreement, you can’t make records for anybody else. Therefore, an exclusivity clause in a contract refers to the fact that you may only contract with this record company (you are “unilaterally married” to that company.) I strongly recommend that your attorney define the extent of exclusivity.
TERM
The duration of the contract. (How many records? Any time constraints?)
PRODUCT/CREATIVITY
Who will control the amount of product and the quality of the product? You always want as much creative freedom as possible; the record company often maintains a veto power when letting a band choose the producer, engineer, studio, etc.
RECORDING COSTS
How much (recoupable) recording money will you get? Don’t overdo it! Remember, you will have to pay it back from your royalty rate as applied to actual sales.
ADVANCES
How much (living) money will you get that is recoupable? What about other advances, such as videos, and touring? Remember, you will have to pay back that amount to the label.
ROYALTIES
The money paid for your service as recording artists. Outside of U.S. is calculated differently. (Canada: 75–90 % / UK, Japan, Australia: 60–70 % / Rest of the world: 50 %–of U.S. rate).
VIDEO
Who controls the music video and how the costs are apportioned. Try to have only 50% of the cost recoupable.
PUBLICITY
The label will need your permission for name, likeness and voice in order to publicize your record. Also, ownership of your website URLs may also be a point of negotiation.
MERCHANDISING
Same as with Independent labels
UNION
Your promise to join a union (AFTRA, AFM).
AUDITING
Your right to audit the books. Make sure this clause is included in the contract.
ACCOUNTING
The label’s responsibility is to report financially to you (reports to artists usually occur every six months; i.e., if an accounting period lasts from January till June, the label will report to the artists approximately in September).
ASSIGNMENT
The record company’s right to sell the contract. Majors sometime shuffle acts around from one affiliated label to another within their family of labels.
CONTROLLED COMPOSITION
How the label will pay mechanical royalties. Standard practice is that the label will only pay on 10 songs on your record, and at 75% of the current statutory mechanical license fee. (As of 2002, 8 cents per song, per unit sold.) This rate changes every two years.
TERMINATION
This clause specifies the songs you may not be allowed to record for a set time after the ending of the contract.
SIDEMAN'S CLAUSE
You might want to consider including a sideman’s clause. A sideman’s clause allows an artist to do studio work. The artist still needs permission from the record company; they however, can’t say no unless they have a very good reason. Under normal circumstances -- without such a sideman’s clause -- you would be prohibited from performing for any other band/label under the terms of an exclusive contract. If you have a sideman’s clause in your contract, make sure all members of your band sign the document.
KEY MAN CLAUSE
If a significant label executive resigns, or leaves the company, you may terminate the deal. The label may also put such a clause in concerning a band member.
See yall niggas at the next topic. and just to let you know. i dont believe it, i just said it can be tru thats how i know yall dick ryders. now do what you do best talk shit about me and keep me on your mind yall my fans yall niggas follow me where ever i go and give me yall undivided attention. watch the next topic how they follow me, i put a mill i dont have on it.
WOW... that is a lot of shit u just typed on this article. Buddy you must have TOOO much free time.
i aint sure... but i think he copied this from the article XXL had like a month ago... :S
it looked familiar... cause i no they did somethin like that...