@theestallion, Contracts, and the Business of Music at a Young Age

Megan Thee Stallion
Erik Voake/Getty Images for Roc Nation
I do not own the copyrights to this image.

Megan Thee Stallion is in for a big lesson when it comes to finance and contracts. March 1, Megan shared a video via Instagram dishing her contract details with 1501 Entertainment, and its CEO Carl Crawford, who’s an ex Major League Baseball player. She stated that she didn’t understand or know the verbiage that was in the contract that she signed at 20 years of age (now 25), and when she finally got a real management team with lawyers through her management deal with Roc Nation, they brought the details up to see if she understood the terms. She stated she didn’t and wanted to renegotiate. The label isn’t in favor of her releasing new music but is being sued by the artist who is seeking the termination of her contract and a temporary restraining order that has been granted by a judge in Harris County, Texas, to allow her to release new music.

Megan has accused the defendants of common law fraud, breach of contract, fraudulent inducement, fraud by non-disclosure, tortious interference with prospective business relations, violation of the Deceptive Trade Practices Consumer Protection Act, negligent misrepresentation, breach of fiduciary duty and negligence. The plaintiff is seeking a temporary and permanent injunction and a declaration that her contract is “unconscionable, unenforceable and/or void.”, according to the court documents obtained by E! News.  The restraining order will expire March 16, 2020 at 11:59 PM.

What can we learn from this?

It’s important to ask questions when negotiating agreements and understanding all the terms. If you can’t afford a lawyer, it’s important to consult with people in the industry. It’s better than signing something then later having to renege on your business deal.

Yes Megan was young, and I do side with her being taken advantage of because it’s a painful history of artist being incarcerated in deals that do not serve them but those who invest in their capital to record, release, promote, and distribute their art deserve a return (ROI). I hope that this situation can be worked out because everyone deserves an accurate return based on their investment.

2 thoughts on “@theestallion, Contracts, and the Business of Music at a Young Age

  1. Clearly not a matter of tortious interference on part of 1501. In fact, 1501 should sue Roc Nation for such. Unfortunately, Megan, of legal age to sign an agreement is bound to the agreement. While I do not understand why 1501 will not release music I am sure they have their reasons. Sadly, in view of Megan’s ignorance, she will again suffer to an extent from such lack of understanding because Roc will take advantage of that ignorance. Every artist needs a person in their corner who understands contract language and the culture that verbiage thrives in. Lawyers are on the clock, if they were to tell you everything, you wouldn’t need them, therefore they won’t. Interesting that ROC didn’t bother to ring Megan’s doorbell until she blew up on 1501 dime. A key component in the industry is a well known thing called “recoupment.” This is where the artist is responsible for paying back any advances or any outstanding monies owed the label that come from the sales of records. That recoupment traditionally comes from sales. Therefore, until the label recoups all of the advance monies it has expended the artist BEFORE the artist receives one cent, unless stipulated within the agreement otherwise. There is more but hopefully, this provides some basic insight. Certainly I cannot give a thorough analysis since the contract in question is unavailable for review.

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    1. I agreed. I think it’s a lesson for her. I could see if she was under 18. But over 18, she has to abide by the terms she agreed to.

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