The news broke via TMZ yesterday, Jan. 28, that Lil Wayne was suing Cash Money Records for a whopping $51 million. That number was much higher then the original $8 million, which has been the reported advance on Tha Carter V that Weezy had reportedly originally sued Cash Money for. The Fader got a digital copy of the lawsuit and put it online, pulling back the curtain on the entire YMCMB legal and financial relationship and revealing why Lil Wayne -- real name Dwayne Michael Carter Jr. -- decided to sue for $51 million.
Looking at the overall structure of their deal, Cash Money and Young Money entered into a 51 percent to 49 percent split on the business and ownership of the company. There were several amendments to the original deal that Weezy signed as he released more albums. Things started to get rough after the 2012 amendment, which promised to give Carter $10 million per album, including an $8 million advance at the start of recording and another $2 million once it was completed.
In addition to the money owed to Wayne, Cash Money was contractually obligated to pay quarterly overhead for Young Money worth $200,000.
The suit makes the claim that Cash Money did not pay for the advance or the quarterly overhead while also not maintaining an escrow for Young Money worth $1 million.
The suit also claims "Cash Money has failed to properly account and pay royalties and profits to Young Money LLC in respect of the exploitation of recordings owned and commercially exploited by Young Money Label." Drake was used as an example in this case.
It also alleges that Cash Money did not "properly register the copyright in the Yong Money Label recordings as jointly owned by Cash Money and Carter/Young Money LLC, notably I Am Not a Human Being II.
The rest of the lawsuit tabulates how much each of these alleged transgressions is worth in hundreds of thousands and millions of dollars, and that is how they arrived at $51 million.
Even if they cannot settle things in court and this battle drags out for many more months, Weezy's deal with the label under the 2012 amendment expires June 4. There may be a light at the end of the tunnel, but there is no going back after this.
Read the complaint here -- Lil Wayne v. Cash Money -- or below.
