BLACKPINK Contract Renewal Update: Possible Downpayment Amount, Other Details Leaked

As the expiration date of BLACKPINK's contract with YG Entertainment approaches on August 8, the entertainment industry is keenly awaiting an official announcement about the group's future. However, it appears that a decision might not be reached before the conclusion of BLACKPINK's 'BORN PINK' world tour, scheduled from August 11 to August 26 in the United States. Speculation is rife that the announcement might be postponed until after September, leaving uncertainties regarding the contract renewal.

Given that BLACKPINK made their debut on August 8, 2016, the anticipated time for the contract announcement is on August 8, 2023. The distribution of operating profit, with BLACKPINK receiving 80% and YG Entertainment receiving 20%, has drawn interest from industry insiders, who are eager to see how the contract renewal will impact the company's dynamics.

Contract Extensions Amid Disagreements

In situations where differences arise between the company and the artists, it is not uncommon for contracts to be extended with existing conditions until their expiration date. This practice is often followed by a delayed announcement regarding the contract renewal. As BLACKPINK's contract expiration with YG Entertainment approaches, industry observers are closely monitoring whether the group will follow a similar course, keeping fans and investors on edge.

While uncertainties loom over BLACKPINK's contract renewal, there is a glimmer of hope for an early resolution. According to a YG Entertainment official, an agreement before the contract's expiration date might be possible.

https://youtube.com/shorts/6oWUog4pcOs?feature=share

According to a YG Entertainment official, an early agreement may be possible. However, due to the already scheduled world tour performances, it is likely that the current contract will be maintained until the end of August. The official cited the previous instance with boy group iKON, where the contract renewal status was announced three months after the estimated expiration date, which adds to the anticipation surrounding BLACKPINK's situation.

While some investors interpret the end-of-August concert as a positive signal for contract renewal, rumors have surfaced about individual BLACKPINK members, including Lisa, Jennie, Jisoo, and Rosé, potentially exploring opportunities with overseas entertainment agencies or even establishing their own personal agencies. However, no official confirmation has been provided by the members themselves.

Shifting Profit Distribution Dynamics

The size of the contract renewal with BLACKPINK is generating significant interest, with analyst Cha Yu Mi from Mirae Asset Securities estimating the down payment per member to be around 1 billion to 1.5 billion KRW (approximately 769,036 USD to 1.15 million USD), based on previous deals with other prominent groups like Big Bang and TWICE. While the group's global popularity may influence this figure, it is noted that its impact on the company's overall profitability is limited due to BLACKPINK's strong ticket-selling power.

Regarding profit distribution, it is common for the balance to shift in favor of the artist after contract renewal, often exceeding 80% for the artist and 20% for the company. Despite raising concerns, industry insiders explain that an artist's profits tend to grow exponentially after a few years of activity, ultimately outweighing the decreased company share during contract renewal. Additionally, renewing the contract could have positive implications from a symbolic standpoint for the company's stock price.

Korean netizens are also closely following BLACKPINK's contract renewals and expressing diverse opinions. Some believe YG should be actively seeking to renew the contract, given BLACKPINK's significant contributions to the company's profits. Others speculate on the potential down payment amount, with varying views on whether it is adequate or not.

Netizens' comments :

• "I know YG is on their hands and knees begging them to renew it"
• "Well, you know what they say about contracts... YG might want to hold onto BLACKPINK tighter than their fans hold onto their lightsticks."
• "so exited to see what they do in the future"
• "Considering they haven't renewed already there's definitely some heavy negotiating going on. They legit have all of the power right now so if they do stay they better request for full self or better management rights."
• " I really hope they renew i don't want them to disband "

As the expiration date approaches, all parties involved eagerly await the official announcement, which will undoubtedly shape BLACKPINK's future trajectory and their continued impact in the entertainment industry.

Follow and subscribe to KpopStarz for more news.
KpopStarz own this article.
Cassidy Jones wrote this.