One label executive “familiar with Sony’s accounting,” said the late singer’s estate probably won’t see any royalty checks from her record label “in our lifetime” — and maybe longer — thanks in part to the number of advances and loans she took from the $100 million deal she cut with Sony Music in 2001.
On Wednesday, Wayne Rosso, an outspoken veteran of the music business who has consulted for CBS, Island, MCA, Arista and RCA Records, to name just a few labels, posted a report in his Wayne’s World blog titled, “Whitney to Sony: I Will Always Owe You.”
In it, Rosso estimated that Houston would have to posthumously sell more than 5 million albums “to repay her advances and start to get royalty checks.”
While that might not seem like a lot, Whitney’s greatest hits album would need to stay number one for six months in order to release that.
While Whitney Houston did sign a $100 million dollar deal, it’s believed Sony never wrote out a check for $100 million.
The way the deal was structured, Whitney only pulled in about $38 million dollars, which is now all gone. After numerous loans from Clive Davis, which were likely coming from the label, Whitney was in some serious debt.
SOURCE: NY Daily News