Latest / Clone Wars: The Spinoff / Chris Keil's $750K Deal: The New Artist Financing Blueprint

Transcript

Chris Keil's $750K Deal: The New Artist Financing Blueprint · Clone Wars: The Spinoff

• 0:00
  Yo yo, welcome back to Clone Wars, I'm DJ Universe in the building with the whole
• 0:04
  crew, and today we going in on a deal that just hit the wire out of 6 East Studios.
• 0:09
  Aethelgard Royalty Group just put seven hundred fifty thousand dollars behind Chris
• 0:13
  Keil.
• 0:14
  Three hundred thousand streams, twenty million spins on his catalog,
• 0:19
  and now real capital behind him.
• 0:22
  This the kind of move a young artist need to study, not just scroll past.
• 0:26
  I seen the headline and had to pull up the actual terms, because everybody throw
• 0:31
  around big numbers but the structure is where the real story at.
• 0:35
  So break it down simple.
• 0:36
  Seven fifty splits three ways even.
• 0:38
  Two fifty is a catalog advance against existing masters.
• 0:42
  Two fifty is a revolving facility just for touring, so that's cash he can draw down
• 0:48
  and pay back as shows route.
• 0:50
  And two fifty sits in escrow for marketing and visual content across multiple
• 0:54
  projects.
• 0:55
  That's not one lump check, that's three separate levers.
• 0:58
  That touring facility is the part that get my attention.
• 1:01
  Every indie artist know the problem, you book the run, but you need tour support up
• 1:06
  front for the bus, the crew, the flights, before one ticket money hit your pocket.
• 1:10
  A revolving facility means you draw it down, you pay it back off the box office,
• 1:15
  and it resets instead of you being stuck in a hole after the tour ends.
• 1:19
  And the key clause, this is temporary administration and co-ownership on the
• 1:24
  specific assets they financed, not a blanket grab on his whole catalog.
• 1:30
  Once the capital recoups, full ownership and admin rights snap back to 6 East
• 1:35
  Studios automatically.
• 1:37
  That's the difference between financing and selling your future.
• 1:41
  See, back in the day this deal didn't exist.
• 1:45
  You either self funded off your own pocket, or you signed a traditional deal where
• 1:50
  the label front you money and take your masters and your publishing forever to get
• 1:55
  it back.
• 1:56
  I watched veterans sign paper like that in the nineties and still don't own their
• 2:00
  own songs today.
• 2:01
  That's why the branding piece matter to me.
• 2:04
  Chris Keil already built 6 East Studios and The Vault before this deal,
• 2:09
  so he ain't coming to the table empty handed.
• 2:12
  He's the product and the label at the same time, the capital just adding fuel to a
• 2:16
  fire he already started.
• 2:18
  That's a completely different negotiating position than a new artist with no
• 2:22
  infrastructure.
• 2:23
  Facts.
• 2:25
  Own your masters, own your studio, own your brand first, then let capital come to
• 2:30
  you on your terms.
• 2:32
  That's the difference between a deal happening to you and a deal you architected.
• 2:37
  Now let's connect it to the bigger money on the table this year.
• 2:40
  The streaming mechanical rate under Phonorecords IV is climbing toward fifteen point
• 2:46
  three five percent of service revenue by twenty twenty seven,
• 2:50
  the highest headline rate in U.S.
• 2:52
  history.
• 2:53
  That rate hike changes the value of every catalog these capital groups are pricing
• 2:57
  deals against, including Chris Keil's.
• 3:00
  And on my side of the business, that same math shows up at the merch table and the
• 3:04
  door.
• 3:05
  If your streaming royalty is climbing but you still ain't touring smart,
• 3:08
  you leaving money on the table twice.
• 3:10
  A revolving touring facility only pays for itself if you already know your per city
• 3:15
  break even number before you sign anything.
• 3:17
  That's financial literacy in one sentence, know your break even before you touch
• 3:21
  anybody's capital.
• 3:22
  Read the recoupment schedule like it's your own bank statement,
• 3:25
  because it is.
• 3:26
  This is where knowledge of self come in for real.
• 3:30
  Supreme Mathematics teach us Knowledge is one, Wisdom is two,
• 3:36
  and Understanding is three.
• 3:39
  Knowledge of self in this business means knowing your own numbers cold,
• 3:43
  your streams, your splits, your recoupment balance, before you let anybody else hold
• 3:50
  a piece of it, temporary or not.
• 3:52
  Wisdom is applying that knowledge, taking a deal like this and using it to build
• 3:56
  instead of just surviving off the check.
• 3:59
  And Understanding is watching the whole cycle complete, capital in,
• 4:03
  capital recouped, ownership back in your hands stronger than before.
• 4:08
  So real talk to the artists listening, study this deal structure,
• 4:12
  ask about recoupment terms before you ask about the advance number,
• 4:15
  and keep building your own infrastructure so when capital does come,
• 4:19
  it's working for you and not the other way around.
• 4:22
  That's the blueprint.
• 4:23
  Own the asset, know the math, let the capital cycle back to you.
• 4:27
  That's the episode, Clone Wars family.
• 4:28
  We out.