JYJ, former members of TVXQ,had filed a lawsuit against SM Entertainment on July 31st, 2009. The lawsuit ended in 2012 with both sides reaching an agreement. Netizens found the original of SM's controversial, old contract with TVXQ, on Supreme Court of South Korea's official website. You can see the full contract here:http://www.scourt.go.kr/portal/dcboard/DcNewsViewAction.work?bub_name=¤tPage=&searchWord=&searchOption=&gubun=44&seqnum=6353
Here is the profit distribution:
Domestic physical album sales 'revenue':
50,000-100,000 copies= 2%
100,000-200,000 copies= 3%
+200,000 copies= 5%
SM Entertainment gives an incentive of 50 million (~$47,000) KRW when they reach over 500,000 albums sold, and 100 million KRW (~$94,000)when over 1 million albums are sold. This means that the members are paid extra when they reached that amount sold.
All of the costs are taken in by SM Entertainment themselves, and the members get a percentage of not the pure profit, but the total sales (meaning before costs and such are subtracted).
Digital album/mp3 sales profit: 10%
Overseas physical album sales profit: 70%
Overseas activities (Event/CF etc.): 70%
Concerts, TV/Radio/Magazine etc appearance: 65%
Photoshoots/Photo albums: 65%
Internet business: 10%
Netizens commented, "I thought Lee Soo Man was the evil and JYJ really were the victims but it's not," "After all, TVXQ win. They are the most earning group,"'Slave' contract lol," "The richest 'slaves ' in the world," "Now they are only 2 and the contract is better, can't imagine how much the duo earn,""They already make the most money from Japan concert tours, events and physical sales."
What's your opinion?