The Machine Rages On- Tipping The Skales On Record Deals

by Mayuyuka

There have been great breakout successes for independent artists all across the world lately. In the States Chance The Rapper and in South Africa Cassper Nyovest has built himself an empire with his record label Family Tree.  

For every great indie success, however, there's a lot more successful artists with label backing. Now what about those successes who we see hit the limelight but are signed to deals which seem aren't in their favour. Once in a while, the curtain is pulled back and the façade of bottle popping and fresh whips gets put firmly in the spotlight.

Well, Skales is a prime example of a major signing gone wrong it seems. With news of his and his managers arrest, a slew of documentation has surfaced on line. The Nigerian signed a reported 200 Million Naira deal with Howie T and Dipo Abdul-helmed record label Baseline Music.

Now if this is all factual, it intrigues me cause the deal purportedly included a new car, a lifestyle allowance and a new house (legally, and not mistakenly referred to as property). Now I say that somewhat facetiously but the point of ownership is essential to talk about when we speak of record deals. Along with an artist receiving an advance to record music with the best facilities available to them, all these other perks are considered loans from the record label. It's an investment the label makes in an artist, and like any other investment a healthy return is expected. That means any advances offered to an artists have to be paid back through sales and a cocktail of other revenue streams. Before that debt is settled though ... the label has access to any surety it can get. Surety is literally insurance on the prospect of future losses. Put simply, an artist's value is tied to the label for as long as they're contracted to them: until they recoup a return.

Now lets track back a little: A label willing to give an artist an extreme makeover (rapper edition) deluxe package isn't being charitable and is just putting as many eggs into a basket they believe in as they see fit. So it wasn't a surprise to hear that Skale's earnings were purportedly divided between a 70– 30 percentage split in favour of his label. This agreement applied to income from both his current and any previous deals apparently, meaning he sold off his previous and potential earnings to a corporation. What's most striking is the alleged 10 Million British Pound fee he'd have to pay to buy himself out of the contract.

I'd hazard a guess that the typical 360 Degree Deal is responsible for a lot of artist's unhappiness. In such a deal the label has access to an artists image rights, copyright, performance bonuses, syndication fees, royalties, publishing rights and literally any other income the artist earns. All signed away in exchange for the access and perks the label provides. As preposterous as that sounds, it is somewhat the norm. It sounds harsh on an artist, but when you have access to an allowance, studio facilities, distribution and other perks the price to retrieve your freedom is pretty high! In Nigeria alone there have been a range of artists leaving after being at loggerheads with their labels. Here's a few of the verifiable accounts we have so far:

Milli just parted ways with Chocolate City apparently due to having his music unsupported by the label and a collaboration with Wizkid shelved. He goes so far as accusing label honcho M.I Abaga of stifling his career! We've seen contractual disputes between D'banj and Don Jazzy tear apart their partnership as well in eerily reminiscent fashion. Meanwhile, Ice Prince has moved on to form his own label, also relinquishing any ties he has with Chocolate City. Although this reportedly happened in 2014 and probably seems like a natural progression for him.

What seems very un-natural is the relationship with Runtown and Eric Many Entertainment. His label allegedly breached their contract after failing to pay him his 35% split over a couple of years. He has a sordid tale to reveal which includes broken promises, extortion and death threats! The artist was banned from performing due to an injunction and subsequently terminated the agreement.

Here's a run-down of other Nigerian acts who split from their label, as per Pulse: 

This sort of strife for artists isn't only isolated to Nigeria, as in South Africa there are plentiful stories with artists signed to labels such as Ghetto Ruff where popular musicians such as Ishmael and Zola have had varying disputes with label head Lance Stehr. Kenyan femcee Xtatic recently had an online outburst aimed at her label: A major record label she blamed for allegedly shelving her project even though she met her end of the deal. She goes on to list more East African talents she feels have been exploited in her exasperation, such as Ugandan rapper Keko. The problem is clearly not limited to individuals either as  the issues Zambian outfit Zone Fam have with Kenyan label Taurus Musik prove.

It seems year after year we hear stories of beloved artists passing away broke and the like. And this is where  stories like these take my mind. There are whispered tales of composers of indigenous music having their work owned by people with foreign names... and even artists' families inheriting their indebtedness! The vast amount of African legends, in any genre, that have been dealt hands they either were unaware of or misunderstood is extensive. Even if a label sounds like the underdog in relation to mainstream players... every  label operates like a label: whether it is indie, an imprint or multi-national. In the relationship between artists and label the word partnership only counts in press releases and is rarely accurate. You are employed by a label to recoup it's earnings, and in the meantime anything attached to you they own!

The tales of these artists converge to remind us that the music industry functions on a lot more than just talent, hype or the glitz and glamour us consumers literally buy into. Even talented artists require an understanding of what they seek to achieve. Sometimes being independent is the best way and other times a label provides much needed distribution and reach. All this, however, should be negotiated. When signing to a label not every right needs to be cashed in! Without keeping some form of musical ownership... great strides such as the quotas in Nigeria or the newly enforced 90% local music on South African radio will all be in vain. With no publishing or royalties to their names, there'll be very few benefits for the talented folk who entertain us!

We've spoken about having a great team around you in a musical sense before. But an artists squad goals should include certified managers, publicists, accountants and more especially lawyers. We need people to turn up with, but we also need people to turn up... when we need help signing on the dotted line!