‘X Factor’ Winner Could Earn More than $5 Million
TMZ is reporting that the purse string holders have orchestrated a contract for the winner to be paid out more than the much-touted $5 mil through various means. The crafty sleuths at the site obtained a copy of the document.
Apparently, each contestant signed a contract which states that if they win the show, they will get their $5 million over a period of five years, so a million per year. So it’s not like they were getting a lump sum at once. Not even close.
The $5 million is an “advance” besides any earnings the winner brings in during that five-year period. It includes all revenue streams, such as record sales, touring, merch and more.
If the winner earns more than $5 million during the five years, they get a cut of that, as well.
The winner can also perform outside of the official ‘X Factor’ tour and obtain 30 percent of the royalties from each show. That money does not count towards the initial contract’s $5 million booty.
However, most record deals work this way. The label fronts or advances money for costs such as recording, promotion, advertising, photo shoots, hair, makeup, independent publicity and other promotional efforts. The artist pays that money back to the label through record sales. It’s called recouping. Once an act recoups (or repays) the amount of the contract, and what was spent on the artist replenished via record sales and other revenue streams, the artist stands to make more money.
Looks like ‘X Factor’ has made this competition financially sweet for the contestants.