New American Idol Runner-up Contract Allows for Lower Payouts, Singles Only Deals

By On 05/25/2012 · 168 Comments · In American Idol, Jessica Sanchez

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AMERICAN IDOL: Idol Finaist Jessica Sanchez performs during the season 11 AMERICAN IDOL GRAND FINALE at the Nokia Theatre on Weds. May 23, 2012 in Los Angeles, California. CR: Michael Becker/FOX

According to an Associated Press report, the runner-up contract for season 11 makes a provision for a singles only situation for the first time in American Idol’s history.

Wednesday night’s runner-up, 16-year-old Jessica Sanchez, doesn’t have a definite shot at producing an album and could be paid as little as $30,000 in advances for recording singles, according to the “Idol” contract she and other Season 11 contestants signed earlier this year.

The agreement appears to be the first time in “Idol’s” history that producers are not offering the show’s runner-up an album deal that in previous years came with a guaranteed advance of at least $175,000, an Associated Press review of the Fox show’s contracts reveals.

If Jessica  is given an album deal (and I totally think she will)  she will receive the same $175,000 bonus that Lauren Alaina was paid last year.  But 19R  has replaced a guaranteed album deal for the runner-up with a staggered “Development Period” that requires less music and pays out less in advances.

Jessica  could be paid as little as $30,000 if she is asked to perform four single songs, or $60,000 if she records an “EP” of between four and 10 songs.

I didn’t realize the runner-up was offered a guaranteed recording contract, even though every 2nd place Idol has been awarded a contract and released an album. However, alternatives to an album deal have never been specifically laid out like they appear to be in this new contract.

Again, I don’t think Jessica will be relegated to releasing a couple of singles for UMG and 19R. She’s going to make an album, or I’ll eat my hat. So, don’t fret Jessica fans!

Jessica’s contract came to light due to her minor status.  California law requires that minor contracts be made available to the courts for review in order to setup a trust fund that will be available to the minor when they turn 18.  Last year, due to Scotty McCreery and Lauren Alaina’s minor status, we got a glimpse at the winner and runner-ups contracts.

ETA:  Phillip will get the same deal that Scotty McCreery got last year.  Contract details for the rest of the finalists are also revealed.

“Idol” winner Phillip Phillips will receive the same $300,000 advance given to last year’s winner, Scotty McCreery, upon completion of his first album, according to the contracts. Finalists who placed third and lower could receive deals to record singles, EPs or full albums, with the lowest advance amounting to $24,000 if they complete their commitment to record up to four single songs.

Higher advances are paid if 19 Recordings agrees to produce more albums, with Phillips eligible to receive up to $800,000 for a six-album deal.

 

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  • OffLeash

    I’m pretty sure Haley didn’t outsell Scotty, and iirc, she didn’t outsell James either. 

  • Anonymous

     ”Heck
    I’m not talking about giving them a million dollars. But I find it
    difficult to believe 19 can’t monetarily compensate another 100K for a
    reduced contract. The carrot keeps getting smaller and smaller. ”

    I wonder if they look at the fact that 10s of thousands turn out to audition every year, and that the group contains very talented people every year, and that 10s of thousands are now turning up to try out for all these other shows, too — and then realize that, Hey, we really don’t need to promise all that much; we’ve built it, and they continue to come.

    I really think this has most to do with the decline of the album as the main music item for sale, though.

  • Anonymous

    I must say that this is nothing compared to the 5 mil dollar offered by X factor.

    The difference is that that $5 million isn’t guaranteed.  Like in the UK, it’s 1 million for 5 albums, but the likelihood of someone getting five albums is slim.  

    But, I think that we are missing the big picture, the thing that the alums want the most is a record deal.  If they can’t have that, then the next best thing is a development deal.  The money isn’t that big of a deal.

  • Anonymous

     http://www.thedailybeast.com/v…

    That nightline piece was stupid, considering that they use Cassie Abrams as an example, but he’s signed to a label, and has an album that is about to be released.  Then they mention Justin doing regional theater, except that what he was really doing is appearing in a play that’s being workshopped, and that was written by Steven King.  He’s also been in at least two Broadway plays since his idol days.

  • OffLeash

    The difference is that that $5 million isn’t guaranteed.  Like in the UK, it’s 1 million for 5 albums, but the likelihood of someone getting five albums is slim. 

     
    I didn’t know that. So it’s actually $1 million per album? I thought I read somewhere that Melanie got her $5 million. I could be wrong, I hate that show and I didn’t really pay attention to the prize part. Does it mean they signed her for 5 albums then?

  • Anonymous

    I think as a viewer who invests in these artists week after week and then spends X amount of dollars on them to see them “fail” or at least “fail” in the eyes of the media can become quite disheartening. I think the negative press about the lack of success of winners, as well as, the runner-ups needs to be addressed. People need to see what the show has done for these kids, the opportunities they have been given and what “successes” they have achieved. Not everyone will have a Lady Gaga success or Adele or a Kelly or Carrie type success. There are too many variables and really of those mentioned above, Kelly and Carrie have a sustained track record to date. Country has been kind to Idols and Kelly has earned her stripes and she,too, has endeared herself to Country.

    My point: idol needs to spin the positive aspects of the show. Let us see the successes, however modest, the contestants have achieved. People don’t seem to be getting that most of these kids would never have made it at all, would be working at Mcdonalds or Walmart or the local pub. Or maybe they would have just given up on their dream and gone to school and received their degree and lived a good life, but would always wonder. . .

    There definitely is a need for rethinking things on everyone’s part. A talent show that gives these kids opportunities and the chance to make money in an economy that offers even college graduates a slim chance at finding a job and even slimmer in their field, needs to be lauded rather than vilified. As Phillip Phillips stated, it’s all about the music and that, in my opinion, is why many singers/contestants will continue to be successful in their own way come what may. The staying power of Kelly and Carrie is an anomaly in the music industry and like it or not won’t be sustained at that level forever, but they will have a solid career for as long as they choose. Reba comes to mind to name just one.

    The negativity and bad press will eventually kill IDOL. The most vocal for its demise will, in turn, be the most vocal lamenting over the loss.

  • OffLeash

    Phillips eligible to receive up to $800,000 for a six-album deal.

    That’s a huge commitment! I’d take my chances with just one album, but that’s just me. Especially since there must be a clause in there somewhere that if they’re not commercially successful the label doesn’t have to go ahead with all six albums. I also imagine the Idols would have to reimburse whatever part of the advance money they couldn’t earn through sales, but I could be totally wrong.

  • http://www.facebook.com/glenwford Glen Ford

    Jessica is working with the best in the business-AI is trying to hitch a ride on her tails -Carrie Underwood is worth around $50 million-

  • Anonymous

    Allison was a lot more current than Jessica.  Where is she now?

  • http://profile.yahoo.com/7THB52IDN6MTZNJFBUZYGPHPOM pg

    Lauren was the highest debuting female country artist since Leanne Rimes. Lauren is doing extremely well in her very young career. Touring with sold out concerts opening for Jason Aldean and Sugarland.  She has been nominated for several awards.  Lauren’s album is currently at #40 on the billboard 200 country charts

  • Anonymous

    I am more and more impressed with the hard work Adam has done between CD’s.  He has been, and is now, out there all of the time working his hiney off.  And he is one of the most talented ones.

  • Tera2

    Jessica will get to make a full CD.  Her Pop/R&B/Hip-hopstyle with the right songs does well internationally. (and she can rap too) That style will sell here in USA too. Jimmy knows she can do very well in Phillipines, Korea and other Asian countries, and those are big markets who have been loyal to idol contestants who arent even of that heritage.  Jimmy and stars and producers like Akon and Will I Am of Blackeye Peas sees the potential in Jessica. 

     Jennifer Hudson, Jordin Sparks and Kelly Clarkson have done well with Pop/soul vibe and Jessica fit their vibe and can have hits too.  She likes Beyonce and Rihanna and covers their songs and their music do well internationally.  And Jessica has good recording voice that’s a combination of Beyonce and Jennifer Hudson.  Also, whats gonna matter is selecting good commercial songs for her CD and she will do well — sales of itunes of covered songs they sang on the show isnt what will matter in the end.  Contestants of The Voice all sell well on itunes during the show like Phillip but dont sell when actual CD comes out.

  • http://twitter.com/MissGolightly22 No Thanks

     I liked Allison, but she really wasn’t more current than Jessica.  Allison liked to rock.  But the pop rock direction they pushed her in didn’t click.

    The style Jessica likes to do fits Top 40 to a T.

  • Anonymous

    Your premise is flawed.  JH only sold a few based on her AW.  Jes is Lucky to sell 10K.

  • Anonymous

    It’s always a total package.  If Carrie was 300 lbs with warts, where would she be?  Sorry, just don’t feel like she deserves her $$$.

  • http://twitter.com/KariannHart Kariann Hart

    There was mention of an Australian fan club for Jessica; also in England.  I still believe she wil be a success in Asia as well.  We may be looking at an International singing star.  I hope they prepare her properly for all of this.  Jessica is a winner.

  • http://pulse.yahoo.com/_UITYTUSGL7IK7WLFFDXXRYP7GA Falfor

    I am surprised that Idol has not done this a while back. For business reasons, allowing the younger contestants may have been what made it change. There is less obligation to the younger contestants than adults. Judge approval for the $, time to develop, time to finish school and time to determine if they are a success and worth keeping, all the while, with minimal obligation. If they do not succeed, Idol is out minimum damages and moves on to the next year. If they are successful, they have just added to their % of successes. Saavy business.

  • http://twitter.com/clubtekila iFancyJay

    Am I the only one who noticed that Jessica’s voice on every studio version of her songs on american idol sounded  a little different. It sounded too “POP-ish” for me, it’s like they auto-tuned it too much. However if you listen to her studio recordings prior American idol she sounded more like herself. Try and compare her studio recordings american idol and her journey to the finale songs too see if I’m right

    http://youtu.be/EzyZl7WBfzA (Skyscraper cover)
    http://www.youtube.com/watch?v=hpHjKWBlI80 (Change Nothing)

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