From Breitbart/AP.
The drummer for the country group Alabama has been sued by his fellow band members, who say he was overpaid $202,670.
How does that happen, how do you overpay a drummer by 200grrr?
The lawsuit filed May 9 in the Circuit Court of DeKalb County, Ala., claims that in 2003 Mark Herndon was paid for his share of net merchandise sales during the band’s “American Farewell Tour” before a final accounting was done.
The final accounting, the suit claims, found that “there were no net merchandise revenues as defined by the contract.”
The key word there is “net”; net merchandise revenue. It doesn’t mean that Alabama didn’t sell some crap, just that they didn’t make a profit.
The lawsuit, which names The Group Alabama Inc. as the plaintiff, also states that Herndon has demanded a payment of $65,047 which represents his share of an advance against anticipated sales of the “The Last Stand” CD, which was recorded live during the farewell tour and is being sold by Cracker Barrel restaurants.
Alabama contends in the lawsuit that this amount and Herndon’s share of any future earnings should be withheld until the full amount Herndon was overpaid for merchandise sales is repaid.
So, Herndon must have received some type of an advance on the tour merch. too.
Alabama, the brand, is one that you would think is pretty established. But, this lawsuit seems to point to possibility that the brand doesn’t have legs right now. If the revenue was rolling in, it seems like recouping a couple hundred thou in advances wouldn’t be that big a deal. They must be thinking that it will take quite a while (forever? never?) to make it up.
The songwriters will still be seeing performance royalties, I’m sure of that because those songs are still on the radio but, that’s separate from band income. These guys aren’t touring so, they aren’t going to sell t-shirts and stuff. And, the CDs aren’t flying out of Cracker Barrel (what was Cracker Barrel thinking?).
I think that you will see more of this kind of thing happening with bands that are no longer active. This notion of advances against future sales was commonplace and there are, no doubt, a lot of markers still out.
Now the Georgia peach is fair, Kentucky beyond compare
Alabama’s grand… the state, not the band
Robbie Fulks “Cigarette State”

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