From the "You're the one who wanted to be a big star" files:
'American Idol' Winner Files Bold Legal Claim to Escape 'Oppressive' Contracts (Exclusive) - The Hollywood Reporter
'American Idol' Winner Files Bold Legal Claim to Escape 'Oppressive' Contracts (Exclusive) - The Hollywood Reporter
"I am very grateful for the opportunities provided to me through appearing on American Idol," says Phillips. "The value that the fans and the show have given to my career is not lost on me. However, I have not felt that I have been free to conduct my career in a way that I am comfortable with. I look forward to being able to make my own choices about my career and to being able to make great music and play it for my fans."
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Before Idol viewers voted him the winner that year, Phillips signed a series of contracts governing his management, merchandising, recording and publishing. The deals are quite favorable to 19 Entertainment, a company founded by Simon Fuller that also produces other shows such as So You Think You Can Dance. For example, according to the complaint, when Phillips does endorsements, 19 gets as much as a 40 percent cut.
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It's not unusual for those successful on reality TV shows to renegotiate deals at some point in their career. Phillips says that he "frequently requested" this, but suggests that the relationship between his management company and recording company frustrated any hope of doing so. According to the petition, "Because 19 Recordings, Inc. is also Petitioner's record company, 19, as Petitioner's management company, failed to secure even a single improvement to the terms of the Recording Agreement, in breach of Respondent's fiduciary obligations to Petitioner."
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Before Idol viewers voted him the winner that year, Phillips signed a series of contracts governing his management, merchandising, recording and publishing. The deals are quite favorable to 19 Entertainment, a company founded by Simon Fuller that also produces other shows such as So You Think You Can Dance. For example, according to the complaint, when Phillips does endorsements, 19 gets as much as a 40 percent cut.
...
It's not unusual for those successful on reality TV shows to renegotiate deals at some point in their career. Phillips says that he "frequently requested" this, but suggests that the relationship between his management company and recording company frustrated any hope of doing so. According to the petition, "Because 19 Recordings, Inc. is also Petitioner's record company, 19, as Petitioner's management company, failed to secure even a single improvement to the terms of the Recording Agreement, in breach of Respondent's fiduciary obligations to Petitioner."