Before and after signing that record label deal

Welcome back!

Concerning my last post titled, Record Label Palaver, a blog post about how recording artists get into trouble with their record labels, this is my advice.

Legal:

The first action that an artiste or anybody going into a contract with another person or organization should take is to get a lawyer or an entertainment business manager or an entertainment accountant. Yes, the two latter professionals can also help you analyze your contracts.

Note that an entertainment/music business manager is different from a music manager. The only overriding duty they perform is business development. I will differentiate their duties in a subsequent post.

You will be doing yourself a favour if you get one of the above professionals ahead of time. It will save you a lot of headaches in the future, especially when the record label palaver starts. This period usually looks like scenes from a movie, when the artiste pitches a tent against the label and vice versa.

Accounting:

After you have accepted the record label’s offer or made a counteroffer and the label has agreed to your terms, the next thing is to keep proper accounting records of your own.

Every amount that the label pays you in cash should be documented. Your expenses should also be documented. Definitely, you should have a bank account.

I recommend that as an artist, you have three accounts; one current, and the other two, savings.

Why and how?

The first savings account will be the account that your record label pays your earnings and royalties. (The latter will only be paid if you have right to the song you recorded on the label’s bill).

The second savings account will be the account that you use for online transactions.

The current account will be your salary account.

Why a savings account? It is cheaper to own a savings account. The bank pays you interest on your account instead of you paying charges as in the case of the current account.

Why a separate account for online transactions? It is safer to put only the amount you need for specific transactions in that account instead of exposing all your hard-earned money to online fraud.

Why a salary account for an artiste? You should be aware that your songs will not always be on the charts. You will not always be in the limelight forever. You need to spend wisely and save for the rainy days. You need to invest.

Your salary should be able to cover your basic monthly needs such as food, clothing, shelter (rent), miscellaneous expenses, contingent expenses and money for the upkeep of your dependents(e.g. children and parents).

So you could pay yourself, say 30% of what you earn monthly, depending on what you earn, into your current account from your savings account.

It is from this current account that you can issue cheques to whoever you want to pay. Your manager will be paid at source depending on your agreement.

Your business manager (me, if you are interested), can help you with your bookkeeping, audit and accounting.

So when a palaver arises, if any, even after you have sought the help of these professionals and your record label is still against you and you are being asked to pay some amount of money, you should be able to compare notes based on your record keeping.

The above advice is useless if you deliberately walk out of your contract. That means that you have breached the contract and you should suffer the consequences.

As an upcoming record label owner, I am not shooting myself in the leg by giving you all this information because I have always believed in being objective and having integrity. I will not call yellow, or black for my future label mates. So help me God.

In my next post, I will be talking about contracts; offer and acceptance, ‘what is’ and ‘what is not’ an offer and acceptance.

Do not forget to subscribe to my blog updates on the right-hand side of this post.

I will be back shortly.

Musically Yours,

DJ Irawo

Music Contract Palaver

DEBBIE RISE

“This is to officially announce that I, Olurishe Deborah also known as Debie Rise, am (sic) no longer under contract with my former record label/management. 

Despite failing to perform their contractual obligation scheduled for the 2nd week of August 2015, the record label went ahead to unilaterally, unduly, unlawfully, unfairly repudiate the then (sic) existing contract on the 13th of August 2015.” 

800 Records, Debbie Rise’s record label responded, 

“This is to inform the general public that the artist known as “Debie Rise” (Miss. Olurise Deborah Ebunoluwa) is still signed to and under contract with 800 Records.

Please note that the exclusive recording and management contract between us and Debie Rise has not been terminated or repudiated as falsely insinuated and same is valid and subsists until 2019!

Take notice that any party contracting with Debie Rise as a recording or performing artist and/or in respect of sales of any of her songs or anything to do with entertainment, without our prior consent/authorization would be doing so at its/his/her peril and we shall not hesitate to bring the full wrath of the law to bear on such individual and/or organization; including suing them for aiding and inducing breach of contract and account for profit.”

I read that the court further went on to grant an injunction against Debie Rise. The injunction granted by Hon. Justice Candide-Johnson restrains Debie Rise (Olurishe Deborah Ebunoluwa) from carrying out any activities as a recording or performing artist. The order prohibits her and her agents or representatives from recording, releasing, distributing any composition, song or musical works.  

I also read that the feud between Debie Rise and her label, 800 records, began sometimes in July 2015 when Debie requested the label to provide a detailed account balance of how much has been spent on her career so far and asked to be released from her contract after investment on her.  

Source: www.vanguardngr.com
SOUL E

When he hit the music scene in 2006, he was signed to a music label called Colossal Entertainment. 

In 2007, Soul E left the record label and he was sued for breach of contract by his record label and the case went to court in October 2007.

The record label won the case and the Federal High Court, Lagos, ordered the singer to pay the record label the sum of N168, 486, 320 and five more albums to complete their agreement.

The agreement, which was signed in 2005, stated that Soul E will release 6 albums under Colossal Records and so many other things which the singer agreed to and signed.

The label claim they spent millions on Soul E in the two years he was with them and wanted their money back and unless Soul E pays Colossal that money and gives them the 5 albums, he can never perform on stage again as Soul E.

Source: LindaIkejisblog.com

Vector

Celeb Super Star Nigerian rapper Vector Tha Viper real name Olanrewaju Ogunmefun and his record label, YSG Entertainment, which is a division of popular Transportation company, Young Shall Grow, led by the first son of Chief Vincent Obianodo, Obiora Obianodo.

The crisis between Vector and his label began after Vector made complaints about how his career was slow, not progressing and why the label had a nonchalant attitude towards their best artist’s career. 

He suggested more professional hands to be employed to push his career to the next level but the label took these views as threats and refused to implement these ideas. 

Vector decided himself to hire some professionals and paid them personally with no help from the label.

According to Naij.com, things got worse after Vector took a self-sponsored vacation to the US and returned. His record label boss misunderstood him saying that he went to sign a record deal in the USA. 

Weeks after, Vector received an invitation letter from the Commissioner of Police of Lagos state and was summoned to the Area-E command (Festac). 

On getting there, he was presented with a “breach of contract” petition, claiming that he had engaged external hands to work for him. His parents got involved (as his dad is a retired police officer), and it was settled amicably.

Feeling unsafe and threatened, Vector surrendered the car and apartment provided for him by the label and acquired a replacement for himself. 

Thinking this was over, Vector went about his daily life (as lawyers were already handling the case) till the 10th of June. 

He was shooting his scene of the Ghetto RMX video by Shank, at his childhood neighbourhood (Mcarthy Barracks, Obalende, Lagos), when men of the police force came to seize him and his personal manager (Michael Umoru) and took them all the way back to Festac, this time it was a proper arrest and they were detained from 3pm till 10pm when his lawyers came through. 

According to sources close to Vector, he had been receiving series of personal threats from the label and he did not feel safe.

Source: Naij.com

DJ Zeez

This is the latest of all the contract breaches. Nigerian singer and producer DJ Zeez has hit some financial troubles following a Lagos High Court’s orders for him to refund N22.3 Million to his record label, HF Music.

According to Pulse, the singer was dragged to court in September 2015 by HF Music following his inability to meet his obligations as outlined in his contract, with the main complaint stating that the singer refused to record music as contained in the record deal.

According to reports, the presiding judge, Honourable Justice B.A. Oke-Lawal in the case brought before the High Court of Lagos State, ordered that Zeez, real name – Kingsley Elikpo, should refund the sum of N22,378,605.70 being the total amount spent by HF Music through various advances made to and on his behalf, from the commencement date of his contract with the label until the point when it was breached by him.

Source: The Pulse

Other artistes who have had issues with record labels include; 

Asa/Question Mark Records

Kel/Capital Hills Music

Brymo/Chocolate City Group

Gino/Question Mark.

In my next write-up, I will write about the accounting and legal side of these breach of contract issues as it relates to both the record label and the artiste. 

Aspiring artistes who are looking forward to being signed by record labels can learn the loopholes to avoid so as not to fall into the same dilemma as these artistes, many of whom are my favourites. 

Some of the artistes like Asa and Brymo have moved on to greater heights but a contract palaver is better not experienced.

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