Young Thug Reportedly Defaulted On Loan After Making $16M From Pub Deal
Written by on November 18, 2024
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It’s not all sunny for Young Thug post jail release. The recently freed rapper is facing serious legal trouble over an alleged breach of contract with entertainment giant AEG. The company claims that Williams unlawfully sold the rights to over 400 of his songs for $16 million, violating an agreement to use those music copyrights as collateral for an outstanding loan.
So what we know is the dispute dates back to 2017 when AEG extended a $5.25 million loan to Young Thug’s label, YSL (Young Stoner Life), in exchange for exclusive rights to promote his live shows. In return, YSL and Williams agreed to repay the loan with interest, along with sharing a portion of their concert profits with AEG.
What’s more, by 2019, AEG alleges that YSL and Williams defaulted on the loan, leaving a balance of $5 million still owed. AEG also claims that Williams misrepresented his financial situation during the repayment process, further complicating the matter.
ICYMI, back in 2021, while still grappling with legal issues, Young Thug began selling off portions of his music publishing rights—reportedly without informing AEG. Despite his ongoing legal battles, including charges unrelated to this case, Williams allegedly sold over $16 million worth of his song catalog. This sale made the ownership of the copyrights “particularly fluid,” according to court documents, raising doubts about who ultimately owns the rights to these songs.
Get this, AEG insists that these actions violated the terms of their agreement and were “false and misleading” to the buyers regarding the legal status of the works. The company is now seeking to recover both the original loan amount and all profits generated from the sale of the music rights.
When tracing the financial path of the sale, AEG has begun issuing subpoenas to those involved in the transaction and is investigating public records to follow the money trail. The company plans to determine within the next six months whether it will pursue further legal action or other avenues to reclaim the collateral tied to Young Thug’s music catalog.
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