Award-winning singer and performer, Mr Eazi has reacted to a post on social media calling record label advances to artists a loan that must be repaid.
Nigerian singer and entrepreneur Mr Eazi has explained why artistes may not necessarily have to repay record label advances from their personal funds if their music fails to generate enough revenue before their contracts expire.
The Comfort singer's comments came in response to a statement describing record label advances as loans secured against an artiste’s future, rather than gifts.
Agreeing with the statement, Mr Eazi highlighted what he considers a key difference between a conventional loan and a record label advance.
“True but the difference is if you drop drop and you don’t pay back and your contract expires nobody go pursue you to pay back that money!” he wrote.
His explanation suggests that when a label advances money to an artiste, it expects to recover the investment from revenue generated by the artiste’s music. However, if the music does not generate enough income to cover the advance before the contract expires, the label may be left with an outstanding balance it cannot recover directly from the artiste.
This depends on the terms of the record deal.
Get Fresh updates from NotJustOk as they drop via X and Facebook
