Young Thug Sued by AEG After Selling His Catalog for $16 Million
Young Thug finds himself tangled in more legal drama after selling some of his catalog for a whopping $16 million while still owing music giant AEG for a hefty loan.
Young Thug Accused of Pocketing $16 Million Despite Owing AEG
Global sporting and live music entertainment company AEG is suing Young Thug after the rapper sold his publishing to Kobalt Music in 2021, which breached their 2017 contract. According to AllHipHop, Thugger allegedly violated a prior agreement when he sold copyrights for over 400 compositions that year. AEG claims those assets were supposed to be collateral for an unpaid loan of $5.25 million they gave Thug and his label, YSL, in 2017, in exchange for exclusive global rights to promote his live shows.
The amount, including interest, was to be repaid in addition to sharing revenue from concerts that featured third-party promoters. By 2019, AEG alleges that Young Thug and YSL defaulted on the loan and left a $5 million outstanding balance. The company claims Thug and his label misrepresented their financial capacity to pay the funds. When 2021 hit, Thug brought in $16 million from selling his stake in 400 of his compositions.
AEG seeks the original loan balance and any earnings attached to the transferred copyrights of the Atlanta native’s catalog.
Thug getting rid of a chunk of his catalog prior to his 2022 arrest in the YSL RICO case likely helped him afford the massive legal bills that came his way while being in jail for nearly three years and being on trial for much of that time. Last month on Halloween, Thug pleaded guilty to charges of participating in a criminal street gang, violation of Georgia’s controlled substance act and multiple gun crimes. He was sentenced to 40 years, with 5 to service, but commuted to time served with 15 years of probation followed by backloaded 20 years. The rhymer was released the same day.