Young Thug Is Reportedly Being Sued For Selling His Catalog Rights In 2021 While Under An Existing Contract

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Young Thug is reportedly being sued for singing two conflicting publishing deals by one of the music publishing companies, according to AllHipHop. Anschutz Entertainment Group (AEG), filed the suit, claiming that in 2021, Thugger signed a second deal to sell his catalog for $16 million with Kobalt Group — something he shouldn’t have been able to do, since AEG has owned the rights to the Atlanta rapper’s music since 2017.

According to AEG, the song rights included in the sale to Kobalt were supposed to serve as collateral for a $5.25 million loan to Thug and YSL Records. Thug’s repayment would come through the royalties generated by the songs and any live performances arranged by third-party promoters (i.e., not AEG). By 2019, AEG alleges, Thug had defaulted on the loan, and claims he misrepresented his ability to afford the payments in the first place. It’s not as simple as running a credit check.

When Thug sold the catalog in 2021, he supposedly made around $16 million for the sale, and made his repayment toward AEG even more difficult. AEG says that not only did Thug breach his contract in this way, but he also continued to book shows through third-party promoters without kicking up the profits. The promotion company wants the amount of the original loan, interest, and the royalties from the sold songs. While AEG put its 2022 lawsuit on hold for the duration of Young Thug’s racketeering trial, the trial’s recent conclusion has allowed AEG to move forward with discovery proceedings.

source https://uproxx.com/music/young-thug-sued-for-selling-catalog-kobalt/