Lil Wayne’s massive record deal changed his net worth forever
Lil Wayne’s rise to stardom has been accompanied by a number of financial setbacks, such as the outrageous auction of his masters, which permanently altered his net worth.
In his heyday, Lil Wayne was a commercial powerhouse. He’s one of the best-selling artists of all time, regardless of genre, and he was the third (and so far, the only) rapper to sell a million copies of an album in a single week. His financial situation is quite different from his creative and commercial legacy, which is safe.
Over the years, Lil Wayne has been involved in a number of legal disputes, many of which have been caused by Cash Money Records, his own record company. He even sold the masters to his renowned library back in 2020, yet he still had to bаttle tooth and nail to be paid for his Һit records. Many were astonished by the choice, but it seems clear when you look at the rapper’s contract history.
Lil Wayne Sold His Master Records After Not Receiving Enough Payment for His Albums
In December 2020, Lil Wayne sold his masters for a $100 million price. Many were surprised by the decision since it is generally believed that artists should be in charge of their master recordings, either via ownership or management.
Wayne, however, was not able to enjoy that pleasure. The rapper revealed the enormous sums of money that he was denied because of dubious recording contracts that go back to the late 1990s in his lawsuit against Cash Money Records in 2015.
Among the underpaid sums were legally-binding album advances, completion bonuses for albums, and royalties on previous tracks that were issued under the Cash Money label. Wayne requested an astounding $51 million in damages, yet that sum is just a portion of what he would have earned had he received fair compensation.
Wayne listed every penny he was denied in his 2015 lawsuit. Among these losses are:
Eight million dollars was awarded for contract violations (not paying for the delivery of two CDs, not paying song royalties, and not include Wayne on some record copyrights).
$5 million as a result of “failing to properly manage and protect the interest of Carter/Young Money LLC”
$13 million in unpaid earnings that Young Money produced
$25 million for violations of contractual and fiduciary duties in Cash Money
Investigation In Progress Regarding Lil Wayne’s Alleged Use of a Gu𝚗 Against His Own Security
Lil Wayne did not remain for police interrogation, despite the agent’s statement being riddled with contradictions.
In 2016, Wayne also sued Universal Music Group, Inc. for $40 million, claiming the company had withheld money from him that he was entitled to receive from the musicians signed to his label. Wayne was able to get part of the money he was due when both lawsuits were resolved in 2018, but since he lost both of them, he ended up with less than what he had hoped.
Selling off masters turned out to be the most profitable course of action.
Lil Wayne was prohibited by his contract from releasing new music for five years.
Even though Lil Wayne’s case against Cash Money Records was resolved, the protracted legal dispute left him in a terrible financial situation. Despite being regarded as a powerhouse in the business, he was legally barred from releasing new songs between 2013 and 2018. Not being able to depend on his main source of income, he was also unable to maintain the opulent lifestyle he had created ten years before.
Legal action ensued quite quickly. In 2012, Wayne got into trouble with the IRS, claiming to owing $14 million in unpaid taxes. If the rapper didn’t pay the IRS what he owes for the years 2011–12, the agency threatened to take his Florida house. The Blast claims that the money were distributed as follows:
The cost of Lil Wayne’s contract disputes is still high. Ronald Sweeney, the rapper’s former manager, filed a $20 million lawsuit against him, claiming he was not fairly compensated after the Cash Money case settlement. The former manager detailed what he was purportedly due in court records that Law.com was able to obtain:
“10 percent of the recovery from lawsuits, 10 percent of the sale of master recordings owned by Lil Wayne’s record label, and then 17 percent in general commissions that he owes to Plaintiffs in connection with Plaintiff’s day to day management activities.”
Wayne’s choice to sell his master recordings at the same time as Sweeney’s lawsuit raised suspicions among music industry insiders that the rapper was in financial trouble and had sold his back catalog to pay off his debt.