- Back in May, Sleepy reportedly filed a request to suspend his exclusive contract with TS Ent., his company of more than 10 years. He claimed that the agency never showed him documents regarding payments and also never showed him a physical copy of their contract. TS Ent. denied this.
- The Court rejected Sleepy's request and in August, both sides agreed to part ways (under guidance of the court). Sleepy went on to set up his own agency in September.
- TS Ent. mentioned suspicions of Sleepy embezzling money from the agency through advertisement rates and that they planned to sue him.
- Sleepy later denied it in an insta post: Sleepy said that when his colleagues sued the agency, he kept believing the agency, but that it went bad once the CEO passed away the prior year. He wasn't shown his account statements and didn't know how his appearance fees he earned while promoting were used. His financial situation was so bad, his water and electricity got cut off and he was eventually evicted.
He decided to sue once TS Ent. even had his broadcast appearance payments seized by creditors.
[Full insta post]Hello, this is Sleepy.
First off, I am very sorry to be greeting you with this unfortunate news.
My exclusive contract with the agency that I spent more than 10 years at after my debut has been terminated through a legal dispute.
In the past, when my colleagues sued the agency, I believed the agency over and over again. However, after the CEO passed away last April, matters that I could not understand occurred.
I asked point-blank multiple times to be shown my account statements, but I was never shown a proper one.
After showing me a few arbitrarily written up pages, the current management told me that they had shown me everything. Even now, as I don’t know exactly how the appearance fees I earned while promoting were used, this problem is not just my own.
In fact, because the management fees and rent for my dorm were continuously pushed back seven to as much as 12 months, I lived uncomfortably with my water and electricity cut off, and I was eventually evicted.
I was afraid to sue, and because hiring a lawyer would cause a strain on my already difficult financial situation, I really worked hard to bear with it until the last moment. However, as the agency had even my broadcast appearance payments seized by creditors, I could not take it anymore and decided to sue.
I feel it is unfortunate that the current management claimed that they are going to take legal measures against me for embezzling money despite my exclusive contract already being terminated.
I did not embezzle money. I am actually trying to recover my rights through receiving the money that was withheld from me through suing the agency. I always want to greet you with good news, but because I couldn’t do that, I am sorry. However, I will not despair. I am really working hard every day. I want to overcome this, and I will.
Thank you for reading my rambling.
- Former Secret member Song Ji Eun showed her support for Sleepy by sharing the cover to his new single 'Disput' which also features BAP's Bang Yong Guk, who also left TS Ent. It's basically a diss-song with lyrics like “Yo TS Rest in peace,” and “Those who have committed a crime, you must be punished. The media and the public, don’t believe their stories.”
- Sleepy then went on and revealed chat records between him and TS Ent. staff as well as a copy of his exlusive contract.
- Sleepy's and TS Ent.'s first contract was signed in 2008. Contract period was 7 years and the payment ratio was 1:9 (Sleepy 10%, TS 90% profit). Ratio was applied to his net profits, which means promotion costs were subtracted from his total profits before payments were made.
The payment ratio was 1:9 in the areas of music, film, drama, and events, but 5:5 (50 percent both ways) in the area of advertisements. The contract also stated that after the third studio album, the artist’s profit division in the area of music would rise to 20 percent (payment ratio of 2:8).
- Sleepy fell into debt to cover his daily expenses (he borrowed about $900 every month for 3 years). In one incident, his former manager stole the advance payment that TS Entertainment had made to cover Sleepy’s event costs. TS Entertainment blamed the manager and did not return this payment to Sleepy. It was not until he was six years into his contract that Sleepy finally received his first bonus.
- In 2016, Sleepy and TS Ent. signed a contract extension. The down payment on this contract extension was about $100,000. TS Ent. paid $4000 in advanced and promised to pay the rest in ~$1600 installments every month. The payment ratio was also revised with Sleepy getting 40-60% of profits from various appearance types.
- BUT Sleepy still didn't see more money. And the monthly payments from TS Ent. were highly inconsistent (often they would skip one month and pay twice the next). The chats show that Sleepy often had to directly ask his agency about the monthly payments.
- Sleepy has claimed in his lawsuit that the agency overcalculated his expenses and undercalculated his profits. He stated that in the past 13 years, he had made about $167,000. Excluding bonuses and down payments, he made about $100,000. This comes to less than ~$8000 per year.
- TS Entertainment, meanwhile, alleges that Sleepy made money through Instagram advertisements without sharing this knowledge with his agency. Sleepy contends that he talked about this on “Radio Star” and that his agency was aware of his sponsorship activities.
- TS Ent. then revealed documents that show that in that first contract, they agreed to a 5:5 split for appearance fees from concerts or events as well (the area of most money for rappers). They state that after their contract renewal with Sleepy in 2016, the payment ratio was revised two times after discussions with the artist and that he was fully aware of his financial accounts with the agency.
source: soompi 1 2 3 4 5 6, naver 1 2 3 4 5, sleepysta 1 2, bimil_jieun