TLC’s Bad Record Deal Lead Them to Bankruptcy
TLC gave hope to a generation of young, black women who wanted meaningful, powerful representation in the mainstream. It could be argued that without TLC, we would have no Destiny’s Child and therefore no Queen Beyoncé. Unfortunately, despite all their talents, TLC still got screwed, but they were smart enough to take action.
By the time TLC released their sophomore album Crazy Sexy Cool, the group was the biggest-selling girl group of all time. Despite the millions the band brought in, they had to file for bankruptcy because of their insanely bad deal with LaFace Records. The band was entitled to just seven percent of the revenue from their album sales – and you’ll never guess how little that sum actually was.
TLC Made Just $35,000 Each
TLC may have been the biggest selling girl group of all time in 1994, but their paychecks were pitiful. The girls raked in a mere $35,000 each after
Crazy Sexy Cool went gold, but had debts that amassed $3.5 million. The group was forced to go into bankruptcy and renegotiate their contract. It took the girls a whopping four years to renegotiate their deal with LaFace.
TLC’s bankruptcy set off major alarms in the music industry. Some major lawyers believed that this presented a brand new option for artists who signed a bad contract and wanted out once they hit it big – but not everyone agreed.
TLC’s Bankruptcy Set Off Alarms in the Industry
According to TLC’s lawyers, the group filed for bankruptcy simply because they couldn’t pay their bills – not to get out of their contract. This still set off major alarms. Bill Stephney, chairman of StepSun Music Entertainment, told
The New York Times that because of the potential to file bankruptcy, record contracts basically “have the weight of a roll of paper towels.”
Michael Lehman, an entertainment lawyer, wasn’t as convinced. He told
The New York Times that if labels were worried about their artists filing for bankruptcy in order to escape low-paying contracts, they should “offer the artists fairer contracts.”
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