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Prepared for Marquis Malloy
I have meetings with two potential partners coming up. This is how I’m thinking about structuring the deals. I need you to tell me where I’m right — and where I may be off.
Music creates catalog → Media amplifies it → Merch monetizes the brand → Moments activate the community → Membership sustains it all
Compilation
Disney is out. Rights reverted to FO LLC. Do the existing signed agreements need to be redone, or do they survive the Disney exit as-is? Any Disney-specific language that creates ambiguity?
Non-exclusive after Year 1 for new releases — keeps them accountable
Ask for advance ($25–50K) — signals their commitment
Termination clause if minimum thresholds not met in 12 months
100% master ownership stays with FO. This is a distribution deal, not a license. Masters never leave our control.
Sync licensing retained 100% by FO. Do not give this up under any circumstances.
FO controls release timing and marketing strategy. Ineffable executes. We set the vision.
Distro fee comes off the top — before the 50/50 artist split. Not out of FO’s side only.
Profit Share + 20% Perpetual Master Retention
FO owns 100% of masters
Profit split: 50/50 net after recoupment
FO funds recording, 50% of marketing recoups
No more recoupment. Straight 80/20 revenue share in perpetuity. FO’s 20% = funder’s interest. No ongoing obligations.
Quarterly accounting within 60 days — artist gets audit rights with 30 days notice
FO approves release timing, marketing, singles. Artist approves creative, artwork, features.
Buyout clause: artist can exit early at 2x unrecouped costs
Delivery: 1 album per option period (min. 8 tracks)
Contract must explicitly state it covers master recordings only. No claim on publishing/songwriting income administered by FOMP (Kobalt). Separate streams, separate agreements.
Artist → Friends Only → Ineffable
Artists sign to FO. Ineffable is distribution only. Never in artist agreements.
100% merch revenue stays with FO. Live Nation typically takes 25–35% at their venues. Resist this.
100% media/content rights retained by FO. We film everything. That content feeds our media and membership verticals.
FO has final approval on venue, lineup, branding, and sponsor integration.
No multi-year exclusivity on ALL live events. First refusal for 12 months only.
How does the live/merch deal interact with the Ineffable distribution deal? Any conflicts to watch for?
Ineffable = 15% fee, 2-year term, non-exclusive after Y1. Masters and sync stay with FO.
Artist deals = 50/50 net profit, FO keeps 20% of masters in perpetuity. 80% reverts to artist after term + recoupment.
Live Nation = promoter deal, not a JV. 80/20 split. FO keeps 100% of merch, media, and brand control.
BIJ compilation = PPD royalty structure (3–5% per featured artist). 100% FO owned masters.
Do signed BIJ agreements survive the Disney exit? Disney is out, rights reverted. Do existing agreements need to be redone or amended?
Marketing budget for BIJ needs to be real — this roster (Beres, Buju, Shaggy, EARTHGANG) demands a serious campaign. Ineffable should fund it as recoupable.
Am I thinking about this the right way? What am I missing? And is there anyone else I should be sitting with on this album and these artist deals?