The Record Deal That Wouldn’t Die
I’ve been an entertainment lawyer for 27 years, and I’ve seen a lot . A lot. I’ve Seen This Before is my Friday series that gives you a peek at some of the lessons my clients have learned the hard way. Some of the details may have been changed to protect client confidentiality.
Although a lot of artists prefer the control of self-released music, many, many artists would rather have a record deal.
Few artists think about what happens if the record label simply…stops.
Not goes out of business.
Not terminates the agreement.
Just stops moving.
I once represented an artist who learned that lesson the hard way.
The Opportunity
Like many artists in niche genres, my client started with a small, independent record label. The label was local, as is often the case with early career deals. Everyone knew each other. They saw each other at local shows. They even ran across each other in the grocery store.
There was trust.
There wasn't much money.
But there was a mutual connection to a local market and a desire to make records. Because of that relationship, my client never hired a lawyer to review the agreement. After all, it wasn't a major label. It was just people from the same town trying to make music together.
The Deal Looked Reasonable Enough
The contract called for one album, with four additional options. That's not unusual. Independent labels often can't afford to commit to multiple albums up front. Instead, they release one album and decide whether to continue based on how the previous release performs.
That flexibility can benefit both sides.
But sometimes it’s badly one-sided.
The Missing Provisions
As is frequently the case, the problem wasn't what the contract said. It was what it didn't say. After the release of the first album, the label had the right to exercise its option for another album. Then after the second album, it could exercise its right for the third.
That’s where the trouble started. Because once it exercised an option...
Nothing required the label to spend a certain amount of money recording the album.
Nothing required the label to spend anything on marketing.
Nothing explained how recording budgets would be determined.
Nothing required the label to begin recording within a certain period of time.
Nothing required the label to release the album by any deadline.
The label could keep the artist under contract...
...without actually making records.
Three Years of Waiting
By the time my client came to see me, his record deal was in its second option period, but nothing had been released for nearly three years. The label wasn't acting in bad faith. It simply didn't have the money.
They wanted to record an album. They just needed to wait until they could raise the funds. Recording was postponed. Promotion was postponed. Release plans were postponed. It was always “we’re working on it.”
Meanwhile, my client couldn't record for anyone else—not even himself.
The contract gave the label exclusive rights. So while the label waited until it had enough money...
My client's career waited too. For years.
Sometimes Doing Nothing Is the Biggest Risk
Artists often worry about terrible record deals. Low advances. Low royalty rates. Giving away ownership.
Those issues matter.
But sometimes the greatest risk isn't an aggressive contract. It's a contract that says almost nothing at all. Here, the contract was loose because the label needed flexibility. It could only have that flexibility at the artist’s expense. So the label had the right to record album three, but the obligation to record had no teeth. Without deadlines, the label was under no pressure to move.
Without spending commitments, an artist may have no assurance that the next album will receive meaningful support. Without release obligations, recordings can sit on the shelf indefinitely. And without recording deadlines, an artist can find themselves waiting indefinitely for the chance to record.
Sometimes the contract doesn't trap you because of what it says.
It traps you because of what it forgot to say.
Questions Every Artist Should Ask
Even if the label is small. Even if the owners are friends. Even if this is just a local group of musicians trying to make something happen. Before signing any recording agreement, ask:
How long does the label have to exercise its option?
Once the option is exercised, when must recording begin?
Is there a minimum recording budget (or, at least, a formula for figuring it out)?
Is there a marketing commitment?
Is there a release deadline?
What happens if the label doesn't record or release by the provided deadlines?
Can you leave if the label isn't recording or releasing your music?
If the contract doesn't answer those questions, don’t sign. Good relationships can change. Financial circumstances can change.
A contract should still work when things don't go according to plan.
The Bottom Line
Small independent labels play an important role in developing artists, and many great careers begin with independent releases. But being small doesn't mean details don't matter. In fact, when budgets are tight and uncertainty is high, those details matter even more.
A good recording agreement doesn't just explain what happens when everything goes right. It also explains what happens when money runs short, plans change, or progress stalls.
Because a bad record deal isn't always the one that takes too much. Sometimes it's the one that leaves you—and your career—waiting indefinitely.
Before you sign any deal, download the free Artist Contract Survival Checklist and learn the questions every artist should ask before committing to any kind of music deal.