TS Entertainment has denied reports of the label's unfair payments to rapper Sleepy.
The rapper and label previously went their separate ways after Sleepy filed a lawsuit to nullify his contract, but TS Entertainment has now filed a suit against him for allegedly embezzling funds. The rapper has also alleged he never received a legitimate statement of his profits and called out the agency in his latest track "Trouble".
On September 24, TS Entertainment released a statement addressing reports that Sleepy had received an extremely unfair contract. The label stated, "The reports that in Sleepy's written contract stated he would only receive 50% of ad revenue are clearly distorting the truth. Firstly, the majority of a rapper's income comes from festival performances and concert fees." The agency further denied Sleepy's allegations that he was only given a 10% share of all revenue aside from advertisements, which he received 50% for.
TS continued that the payment ratio was changed twice after Sleepy's contract renewal in 2016, stating, "Therefore, it is not possible for there to have been problems with the ratio of payment... For the past 10 years, Sleepy and the staff member in charge of accounting looked over the accounts together. Following each meeting, Sleepy took photos of the documents he needed to remember. Sleepy was fully aware of his financial accounts with the agency tot he point he could have detailed discussions with the staff member and explain the situation to management." The label also stated minor expenses for Sleepy had not been included.
Stay tuned for updates on the case.