LAMONT’S MUSIC NOTES-MAY 23, 2019…BEFORE YOU READ THIS, THERE’S ONE THING YOU HAVE TO UNDERSTAND. THE RECORD INDUSTRY IS MADE UP OF SHADY DOUCHEBAGS. CREATIVE ACCOUNTING AND HORRENDOUS, ONE SIDED CONTRACTS HAVE ENABLED RECORD COMPANIES TO KEEP PERFORMERS IN PERPETUALLY IN DEBT FOR YEARS, AND YES, EVEN SOME TOP SELLING ARTISTS.
HERE’S HOW IT WORKS. A RECORD LABEL ADVANCES AN ARTIST MONEY AGAINST FUTURE EARNINGS FROM ROYALTIES. BUT BECAUSE THE COST OF THINGS LIKE STUDIO TIME, MARKETING SUPPORT, ACCOUNTING FEES, ADMINISTRATION FEES AND TOUR EXPENSES MUST BE RECOUPED TO THE LABEL BEFORE AN ARTIST EARNS ANY ACTUAL MONEY, MANY ARTISTS NEVER SELL “ENOUGH” TO REPAY THE RECORD COMPANY FOR THE EXPENSES THAT THEY CONTROL. THUS, YOU HAVE AN ARTIST THAT SELLS MILLIONS OF RECORDS AND HE STILL “OWES THE RECORD COMPANY. THIS IS WERE TOM PETTY COMES INTO THE STORY.
IT WAS ON THIS DATE IN 1979 TOM PETTY FILED FOR BANKRUPTCY IN AN EFFORT TO FREE HIMSELF FROM SHELTER RECORDS.
AT THE TIME OF HIS BANKRUPTCY, PETTY HAD NOTHING TO SHOW FINANCIALLY, DESPITE HAVING 2 HIT ALBUMS TO HIS CREDIT ( 1976 “TOM PETTY AND THE HEARTBREAKER’S AND 1978’S ‘YOU’RE GONNA GET IT!’), AND 2 HIT SINGLES ‘BREAKDOWN’ AND ‘AMERICAN GIRL.’
UNHAPPY WITH THE TERMS OF HIS CONTRACT, AND SEEING AN OPPORTUNITY WITH THE SALE OF HIS RECORD COMPANY TO MCA RECORDS, HE DECLARED BANKRUPTCY IN AN EFFORT TO FREE HIMSELF FROM SHELTER RECORDS.
THIS WAS AN ACT OF GENIUS ON BEHALF OF TOM PETTY., HAVING A BANKRUPTCY COURT EVENTUALLY RULE HIS CONTRACT WAS EXTREMELY UNFAVORABLE AND RULE IT NULL AND VOID BASED ON THE FACT HE SIGNED IT UNDER DURESS. A WIN FOR THE GOOD GUYS !
HERE’S TOM PETTY FROM 2017. IT WAS PETTY’S 2ND LAST CONCERT BEFORE HE PASSED AWAY AND IT WAS HERE IN THE BAY AREA.
photo thanks-Amber
