Spencer Cornelia, Society Commentator

Videos

Athletes

  1. The BIGGEST Reason NBA Athletes Go Broke | PJ Washington
    • Profile
      • PJ Washington was seduced into having a baby with Instagram model Brittany Renner. The biggest reason NBA athletes go broke is because of three reasons: 1 – they get married 2 – they get married to Instagram thots 3 – they have a baby with the wrong woman (out of wedlock)
    • Videos
      • Video #1
        Channel:- Spencer Cornelia
        Date Published:- 2021-August-25th
        Date Added:- 2021-September-15th
        Link
  2. How Reebok Saved Allen Iverson from Going Broke
    • Profile
      • Allen Iverson’s shoe deal with Reebok will likely be the best endorsement deal we’ll ever see between an athlete and a brand.
      • Allen Iverson has been receiving $800,000 annually from Reebok since he signed the contract AND he will receive a $32 million payout from a trust setup by Reebok in 2030 when he turns 55.
    • Videos
      • Video #1
        Channel:- Spencer Cornelia
        Date Published:- 2021-June-30th
        Date Added:- 2021-September-15th
        Link
  3. Why NBA Athletes Go Broke | How Tyler Herro Spent His First $1 Million
    • Profile
      • Tyler Herro was one of the guests on GQ Sports’ show How I Spent My First Million which allows an athlete to share how they spent their first million dollars after getting drafted.
    • Videos
      • Video #1
        Channel:- Spencer Cornelia
        Date Published:- 2020-November-6th
        Date Added:- 2021-September-15th
        Link
  4. Adrian Peterson
    • How to Go BROKE After Earning $100 Million | Adrian Peterson
      • Profile
        • Adrian Peterson has earned over $100 million in his career and is an example of what can go wrong with an athlete’s personal finances if he isn’t careful. Since he’s still signing contracts and playing into his late 30’s simply because he loves the game of football, he has surpassed $102 million in salary alone.
        •  

          Adrian Peterson recently received a lawsuit from Deangelo Vehicle Sales LLC for $8.2 million asking to pay back a loan that has not been paid. It highlights an issue with professional athletes that many of them face financial hardship during/after their playing days.

      • Videos
        • Video #1
          Channel:- Spencer Cornelia
          Date Published:- 2021-March-19th
          Date Added:- 2021-September-18th
          Link

Artists

  1. Why Your Favorite Musicians Are Broke
    • Profile
      • The day has come to make a video about the music record industry.
      • In a billion dollar industry, somehow the talent walks away with very little.
      • In this video, I share with you how money flows in the music industry, why your favorite musicians are broke, and why you’ll constantly hear musicians complaining about their record deal or record label.
    • Videos
      • Video #1
        Channel:- Spencer Cornelia
        Date Published:- 2020-July-25th
        Date Added:- 2021-September-15th
        Link
  2. Part 2: Why Your Favorite Musicians Are Broke
    • Profile
      • In this video, I use a recent interview of Kreayshawn talking about her record deal, her hit Gucci Gucci, and how she had her bank account seized for not paying taxes in order to apply what I previously talked about to a real record contract.
    • Videos
      • Video #1
        Channel:- Spencer Cornelia
        Date Published:- 2020-August-18th
        Date Added:- 2021-September-15th
        Link
  3. Part 3: Why Your Favorite Musicians Are Broke
    • Profile
      • The main theme covered in this video is the conflict of interest found in many relationships between lawyers, record labels, and artists. Many times, the lawyer has financial incentive or relationship with the label and still represents the artist. With the artist not knowing that the conflict of interest is present, they open themselves up to trusting a lawyer that doesn’t have their best interest at heart.
    • Videos
      • Video #1
        Channel:- Spencer Cornelia
        Date Published:- 2020-October-24th
        Date Added:- 2021-September-15th
        Link

 

Transcripts

Artists

Why Your Favorite Musicians Are Broke

The day has come to make a video about the music record industry. In a billion dollar industry, somehow the talent walks away with very little. In this video, I share with you how money flows in the music industry, why your favorite musicians are broke, and why you’ll constantly hear musicians complaining about their record deal or record label.

The central point of this video is the 360 deal, aka the 360 contract. This contract allows for the record label to dip their hands in everything an artist does. The record labels typically fool young and naive artists to sign a 360 deal when they have no leverage and are in need of the money.

They gladly accept the record advance because they’ve never seen money like that before. But it isn’t long before they realize that the advance is recoupable, meaning the label will receive the money back through future royalty payments.

This is how artists can sell millions of albums and still go bankrupt. When they receive a huge advance, most artists want to go spend the money. But the label counts the advance as money that should be going towards production of the album. When the album is finally released, the label will get their cut first. Then from the artists’ cut, the advance will be paid back.

In some scenarios, the artist isn’t able to sell enough to pay back the recoupable expenses. This leaves the artist in debt to the label. The label will take the first profit from touring, merchandise sales, etc in order to recoup their money.

A vicious cycle can be created. Sometimes artists will even be shelved because the label no longer believes in them and doesn’t want to invest the money into promoting the artist. The artist is now stuck with a signed record deal and they can’t put out music.

 

Part 2: Why Your Favorite Musicians Are Broke

Link to Part 1: https://youtu.be/2Ad1sNtqQ5Y

In Why Your Favorite Musicians Are Broke Part 1, we analyzed the 360 record contract deal and why that leaves so many artists broke.

In this video, I use a recent interview of Kreayshawn talking about her record deal, her hit Gucci Gucci, and how she had her bank account seized for not paying taxes in order to apply what I previously talked about to a real record contract.

Kreayshawn revealed so many great insights into her career as a major label artist after signing with Sony for $1 million on her podcast with Masked Gorilla. She had a really up and down career following the release of her massive hit “Gucci Gucci’. This song has reached 70 million views on YouTube and would have surpassed 100 million streams had Spotify and streaming been around in 2011.

She explains why she is still in debt to Sony for $800k, why she doesn’t want you streaming her biggest hit, and why she believes the label shelved her future albums.

At the end of this video, I share an artist who is making a lot of money as an independent artist and how they’re connecting with fans in a unique way to drive sales of concert tickets, albums, and merchandise.

Part 3: Why Your Favorite Musicians Are Broke

In Part 1, I gave an overview of how the music industry works and why a lot of musicians go broke by signing 360 deals. In Part 2, I used a real life example of an artist named Kreayshawn talking about her deal and why she doesn’t make any money from her music because of the deal she signed.

The most popular comment was criticizing the artist for signing the deal and not getting a lawyer. This is a very good point, but what if the artist did have a lawyer?

The main theme covered in this video is the conflict of interest found in many relationships between lawyers, record labels, and artists. Many times, the lawyer has financial incentive or relationship with the label and still represents the artist. With the artist not knowing that the conflict of interest is present, they open themselves up to trusting a lawyer that doesn’t have their best interest at heart.

Migos recently sued their lawyer for this very reason (from meaww article):
“Migos alleged that their own lawyer had cheated them out of millions of dollars. The group sued him for malpractice. Their attorney Damien Granderson has been their lawyer since 2013, but since he also represents the record label Quality Control Music, the group claim that he used his position to negotiate deals with 300 Entertainment and Capitol Music that left their record label with a disproportionate compensation, although it was at the expense of Migos.

Migos complained that due to Granderson’s conflicts of interest, the record deal “would allow Capitol to distribute all albums that QCM produced and that QCM was actually profiting far more handsomely than was apparent from the face of the documents that Granderson personally presented to Migos for immediate execution.” They also claimed that their lawyer “failed to disclose both the complete nature of his relationship with QCM and the complete nature of the conflict in representing both QCM and Migos.” He also apparently made them sign “terms that were unconscionable for Migos” in an amended 2018 distribution deal with Capitol.

In this video, I also cover breakage deductions and why it’s a scam for artists.

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