Juniel Reveals Her Difficult Financial Situation With FNC Entertainment

[Newsie]

Juniel confessed that when she first saw her financial situation with her agency, FNC Entertainment, she thought she was done for. On the September 18 broadcast of MBC FM4U‘s “Kim Shin Young’s Hope Song at Noon,” she confessed that she was short on money. When Kim Shin Young asked, “What did you first think when you […]

The post Juniel Reveals Her Difficult Financial Situation With FNC Entertainment appeared first on Soompi.

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[Guest pwillow1]

She works and works and only accumulates debt? It sounds like slavery to me.

[Guest Hellofanfics]

Sounds bad:(

[Guest eddielim831]

She works and works and only accumulates debt? It sounds like slavery to me.

She's not working at McDonald's making hourly wages. It costs money to produce music. She's not laying out her own money. If she doesn't sell it's a losing proposition.

If she fulfills the terms of her contract she doesn't have to pay back any of the money her agency loses on her. It's like a free shot for fame.

[thenamooprince]

omg Juniel run for your life girl

[Guest Aast]

  On 9/18/2015, 9:32:59, pwillow1 said:

She works and works and only accumulates debt? It sounds like slavery to me.

She's not working at McDonald's making hourly wages. It costs money to produce music. She's not laying out her own money. If she doesn't sell it's a losing proposition.

If she fulfills the terms of her contract she doesn't have to pay back any of the money her agency loses on her. It's like a free shot for fame.

The question is when does an artist know they've "fulfilled" their contract, and the answer is when the company tells them they have. But the hard fact is there is usually little or no transparency from the company about the the financials where the Juniel can see how much the company actually spent on her and how much her performing is actually bringing in. They can continue to claim an artist still owes them for years.

[Guest novadestin]

Comment on Nate: (trans: http://netizenbuzz.blogspot.com/2015/09/juniel-confirms-that-fnc-doesnt-pay.html)

[+39, -8] I'm a lawyer and rarely ever write internet comments but all this misinformation about contracts is frustrating me so here I go. Juniel is the one who signed the wrong contract in this situation. She signed a contract dividing net profit when she should've signed one that divided her sales.

A fair contract would be one where the company agrees to invest their money and the artist agrees to invest their talents together to create sales which are then divided between them. Agreeing to divide net profit instead means that the celebrity won't receive anything until the company is paid back on their investment.

Both sides need to account for their risks. The company needs to risk their monetary investment not being made back and the celebrity needs to risk the time they're spending using their talents and not turning a sale for it. Both sides share risks but by entering a contract that divides net profit, it's only the company that is minimizing their risk before the celebrity gets paid. In other words, she entered an unfair contract.

[Guest Unrealplayer]

Comment on Nate: (trans: http://netizenbuzz.blogspot.com/2015/09/juniel-confirms-that-fnc-doesnt-pay.html)

[+39, -8] I'm a lawyer and rarely ever write internet comments but all this misinformation about contracts is frustrating me so here I go. Juniel is the one who signed the wrong contract in this situation. She signed a contract dividing net profit when she should've signed one that divided her sales.

A fair contract would be one where the company agrees to invest their money and the artist agrees to invest their talents together to create sales which are then divided between them. Agreeing to divide net profit instead means that the celebrity won't receive anything until the company is paid back on their investment.

Both sides need to account for their risks. The company needs to risk their monetary investment not being made back and the celebrity needs to risk the time they're spending using their talents and not turning a sale for it. Both sides share risks but by entering a contract that divides net profit, it's only the company that is minimizing their risk before the celebrity gets paid. In other words, she entered an unfair contract.

That's unfortunately not how the music industry works.
Very few singers are paid on net profit.

The advance given to the singer is eighter repayable or recoupable.
As she is talking about having debt it probably is repayable, wich is indeed something you don't want in your contract.