By: Trey Bloomfield, Staff Writer
Whether or not you’ll admit that you’re responsible for one of the 830 million YouTube views of Florida rapper Lil Pump’s 2017 hit video “Gucci Gang,” you’re probably aware of the face-tatted eighteen-year-old that has taken over the mainstream music industry.[1] Last January, Lil Pump (Gazzy Garcia) voided his contract with Warner Brothers Records on grounds that he had entered the contract as a minor, and he wasn’t the first to explore this potentially lucrative legal loophole.[2] In this article, I’ll be analyzing a classic problem of contract law, illustrated by the recent trend of young hip-hop artists voiding unenforceable contracts to either re-negotiate or shop around as free agents and the potential effect that this may have on the future of contract and entertainment law.
In accordance with common law, in California, “a contract of a minor may be disaffirmed by the minor before majority or within a reasonable time afterward” unless the minor is emancipated, or the contract is for necessaries.[3] However, Section 6751 of the California Family Code, prohibits the disaffirmance of a contract by a minor employee if the contract has been approved by the court.[4]
When Warner Brothers Records first signed sixteen-year-old Garcia in 2017 with a $350,000 advance, they made a costly mistake in neglecting to receive certification from the court prior to entering into a contract with the young artist.[5] Pump’s attorney, John Branca, notified Warner Bros of the voided contract in January.[6] Garcia began to look for more lucrative options as a free agent, receiving offers from Gucci Mane and DJ Khaled, among others.[7]
Last March, Warner Bros. announced that they had re-signed Lil Pump, agreeing to an estimated $8-$12 million advance and favorable percentages on royalties.[8] Shortly after the press release, Pump took to Instagram to clarify that the deal was for just one album.[9] Most importantly, the label was sure to receive certification from the court the second time around.
Lil Pump isn’t the first to bring attention to this issue as of late. In 2017, controversial Atlanta rapper Kodak Black settled a suit with Dollaz and Dealz, the record company that signed him to a contract when he was just sixteen years old in 2013.[10] He claims that the label took advantage of him as he did not have an attorney at the time of signing.[11]
Although entering into contracts with minors has historically presented a costly problem for record labels, they have not appeared to stop pre-maturely snatching up young talent before another label can and the talent pool only gets younger every year. In 2014, Warner/Chapelle signed fifteen-year-old rapper Chris Miles to a contract worth a prospective $1.5 million with a $182,000 advance.[12] Just last August, a Baton Rouge label signed twelve-year-old artist Lil Blurry.[13]
Record companies have likely learned an important lesson from the events surrounding Lil Pump’s contract negotiations with Warner Brothers. They should also be aware of the risks of paying large pre-mature advances to minor artists that yet to prove themselves in the music industry. In jurisdictions without the certification exception, companies will either continue to take risks or find other ways to legally protect themselves when dealing with minor artists. While current law and certification exceptions appear to both protect artists and deter record companies and talent agencies from exploiting them, these changes are not likely a permanent solution to this complicated issue.
Although Warner Brothers Records won in the end by renegotiating with Lil Pump, securing a long-term legally valid contract, they would have saved a significant amount of time and money by first validating the contract through court certification allowing them to renegotiate Pump’s next deal on their terms. While contract law traditionally protects vulnerable young artists, this policy has recently resulted in an unlikely additional source of income for new artists and an opportunity for record executives to brush-up on contract law.
Sources:
[1]https://www.youtube.com/watch?v=4LfJnj66HVQ
[2]https://www.billboard.com/articles/columns/hip-hop/8094047/lil-pump-free-agent-contract-voided-warner-bros
[3]https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=FAM&division=11.&title=&part=3.&chapter=2.&article=
[4]https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=6751.&lawCode=FAM
[5]https://www.tmz.com/2017/12/06/lil-pump-warner-bros-record-contract-millionaire/
[6]https://www.billboard.com/articles/columns/hip-hop/8094047/lil-pump-free-agent-contract-voided-warner-bros
[7]https://www.complex.com/music/2018/03/lil-pump-reportedly-signs-8-million-record-deal-with-warner-bros
[8]Id.
[9]Id.
[10]https://www.complex.com/music/2017/03/kodak-black-settles-deal-with-first-record-label-dollaz-dealz
[11]Id.
[12]http://www.tmz.com/2014/06/27/americas-got-talent-kid-chris-miles-marshak-minor-contract/
[13]https://www.complex.com/music/2018/08/boosie-badazz-signed-lil-blurry
