Weekend KaTeezy

4y

I didn’t expect the budgets to be that high

12 million for Yeezus and 5.7 million for Cruel Summer film (didn’t even release)

Mango

4y

Thanks OP.

GOOD keeps 50% of profits after recoupment of advances

So they kick 50% after recoupment up the ladder. I presume Kanye/GOOD keep some. So what are his signees looking at? Has Kanye practiced what he's preaching?

Ooo

4y

So I’m curious did he just figure this out a few years ago back when he started ranting about being under contract forever? Or did he always know and just have it pent up for so long until his episode that it just came out? I’m not sure if you’re able to answer those just curious. And is that his obsession with being a billionaire to finally feel like he’s free?

safe

4y

yea its wild
all of the advances are huge - LR was $3.5m I think

but the thing is that sure he gets that money. but the label won't pay him s*** back until they've recouped all the advances AND costs
and the costs is a ton of stuff - marketing, distribution costs etc

so basically he will have seen very little in terms of royalties over the years
and I suspect the 50% profit share thing is bogus in that the label basically structures the accounting so that the 'profit' is very small

CactusJackSentYa

4y

Where were you when KanYe needed you all those years ago OP

CactusJackSentYa

4y

Where were you when KanYe needed you all those years ago OP

MAMBA

4y

· edited

Great work Safe. Shocking how low his cut is even after all this time. Music industry needs to be reset.

every time the NBA goes on strike, players get a better cut - either an even split of the revenue, or better amenities / whatever it is. seems like music industry - you cant have a strike to level the playing field.

Mango

4y

Thanks OP.

GOOD keeps 50% of profits after recoupment of advances

So they kick 50% after recoupment up the ladder. I presume Kanye/GOOD keep some. So what are his signees looking at? Has Kanye practiced what he's preaching?

the reds

4y

Assuming the sample clearance + studio hours + personnel wages + software licenses + equipment + music videos + promotion + tour production are all added up in this?

SBMike

4y

You don’t need leverage to say sign a deal for just a set amount and not give the label the option to keep you under contract as long as they want.

Mango

4y

Thanks OP.

GOOD keeps 50% of profits after recoupment of advances

So they kick 50% after recoupment up the ladder. I presume Kanye/GOOD keep some. So what are his signees looking at? Has Kanye practiced what he's preaching?

Weekend KaTeezy

4y

True true. It’s probably a large lump sum for everything

Music videos themselves can be 1 million

safe

4y

first off lemme say that this s*** is complicated as f*** and im not a lawyer. however here is some stuff I could glean from the contracts that people might find interesting. feel free to ask me stuff but no guarantees I can help

• From what I can tell the deal was structured to give UMG options to extend the contract multiple times. Of course because of Kanye's success they picked to exercise these options

• There's a letter in their from Rock the World and because its only partial I cant read too much into details. But it's essentially demanding royalty rates of 85%-100% for the different contract periods with the rest of the royalties going to RTW. The issue is I dont know what the contract periods represent. If it is indeed albums Kanye wanted 80% for CD, LR, Grad and 808s, 85% for MBDTF, Yeezus and TLOP and 100% for anything post TLOP. This letter was not signed by Island Def Jam

• Its hard to tell what options were exercised but Roc-A-Fella appear to own his masters for whatever number of albums took place on the initial contact - at least two, as many as 7

• He didnt give up any merchandising rights (i.e. not a 360)

• royalty rate of 14% with sales targets pushing it to a possible 19% for late registration and possibly beyond

• Kanye has creative control for all intents and purposes

• Kanye signed the deal in 2011. this was for 3 contract years - however any year that he did not deliver TWO albums from GOOD would be suspended until he delivered 2 albums

• Year 1 got waived for not having two albums

• the contract was extended in 2012 and 2016

• If an artist he brings to Island Def Jam that he wants to sign to GOOD is rejected, he must offer that artist to other Universal labels first

• Kanye has control over contracts subject to a minimum level stipulated by UMG

• GOOD keeps 50% of profits after recoupment of advances

• The Cruel Summer film ended up with a budget of at least $5.7m
• Because of costs associated with the Hawaii recordings and Cruel Summer recordings, Kanye had to pay 100% of Cruel Summer profits to the label until the costs were recouped
• This also may be why Cruel Winter was cancelled. The agreement says if Cruel Winter releases, the label will also take 100% of profits until costs are recouped

• The initial Yeezus budget on the label side was $12m
• Royalty rate was 22% again after recoupment of advances

• was expected by the label by 2015
• royalty rate of 22%
• a later document says the label will also pay 50% of profits for yeezus and tlop. these are technically different things. royalties are based on net revenue whereas profit is revenue minus costs.
• Kanye gets the masters for Yeezus and TLOP 20 years after the release date. if the advancement isn't recouped he has to pay the difference to get the masters

• the budget was $2.5m of which $1m would be paid after delivery. this was an advance and thus recouped from royalties
• label owns the master
• the royalty return for Kanye was just 15% and that is after recoupment of the advance

• Here Kanye owns the master but has licensed it to Island Def Jam for 7 years
• Royalty rate is 25% in the US and 16% elsewhere again subject to advance recoupment
• Kanye potentially wanted to sell 'super deluxe versions' of the album exclusively through his online store

Freight

4y

You definitely need leverage. In any type of labor or contract negotiation the other side isn't going to just give you something for nothing.

Like if Kanye said he's not signing if the label has the options to extend the deal forever and the label just says, "Okay...don't sign." What's Ye going to do then? At the time he needed the label more than the label needed him

Carmen is Composed

4y

Don’t features also cost quite a bit?

Flaboi

4y

king s***

the reds

4y

Assuming the sample clearance + studio hours + personnel wages + software licenses + equipment + music videos + promotion + tour production are all added up in this?

safe

4y

also interesting:

the label still wants the Cruel Summer film
they list it in the 2016 GOOD contract as being a delivery obligation

psychedelic

4y

Thanks op.
—

Im not seeing anything shady here. Looks like a standard and fair contract

SBMike

4y

What I don’t understand is why sign anything that gives the label the option to keep re-upping...

And if we can look through and pick s*** like this out why couldn’t he and his lawyer?