Score one for Megan thee Stallion (real name Megan Pete), who won the first round in her contract battles with 1501 Entertainment, a Houston-based label operated by Carl Crawford. Megan took her plea to the public on Instagram on Sunday (March 1, 2020) where she let her followers know Crawford shut down all her music releases in response to her request to renegotiate her contract.
She then sued 1501 Entertainment and was awarded a temporary restraining order on Monday (March 2nd), which prevents her label from blocking the music she had planned to release on Friday.
On live, she alleged the contract provides 60 percent of her recording income. She receives the remaining 40 percent but must use her share to pay for all of the costs related to making her music.
As well, the contract dictates that all money paid for her live performances are to be paid directly to 1501 Entertainment. The agreement stipulates that her label provide her with clear accounting of all her income but instead has turned over numbers described as “purposefully and deceptively vague.”
Crawford responded to her accusations in an interview with Billboard on Tuesday and described Megan’s description of her contract as deceptive. Crawford alleged that after Megan signed on to Roc Nation in August 2019, she shut down the flow all payments from live performances and merch sales.
Taking shots at Roc Nation founder Jay-Z (real name Shawn Carter), Crawford stated, “It’s a great contract for a first-timer. What contract gives parts of their masters and 40-percent royalties and all that kind of stuff? Ask Jay-Z to pull one of his artists’ first contracts, and let’s compare it to what Megan got. I guarantee they won’t ever show you that.”
Crawford also claimed Megan’s contract was written by his former business partner, T. Farris, who parted ways with 1501 Entertainment but continued to manage Megan. He explained, “She got the dude [T. Farris] right up under her. He’s the snake. He did the contract. They had the lawyers. How didn’t you read your contract? She signed two contacts. You signed one with me and 300 [Entertainment]. You mean to tell me, you, your mama and your lawyer didn’t read over that stuff every time? Stop lying. You wasn’t 20, you were 23 years old. You was a grown up. You’re just a liar.”