Fat Joe Reveals Ongoing Financial Dispute with Former Record Labels

Fat Joe recently disclosed his ongoing financial struggle with past record labels, spanning over two decades.

The rapper, reflecting on his experience, criticized the major label system as akin to a “Ponzi scheme,” shedding light on his grievances with Warner Records and Atlantic Records.

In a candid discussion on Instagram Live, Fat Joe reiterated his stance on major labels, likening their operations to a financial scheme.

He highlighted the disparity in partnership, stating that despite artists contributing substantially to album production costs, they often find themselves in a perpetual state of indebtedness to the labels.

“The major label system is designed like a bank,” Fat Joe expressed, elaborating on the financial dynamics. “They fund your album, but then deduct expenses from your record sales, leaving artists with little to show for their efforts.”

Expressing frustration over the opaque accounting practices of major labels, Fat Joe emphasized the enduring financial burden he faces, even after achieving significant commercial success.

Despite selling millions of records, including the acclaimed “J.O.S.E.” in 2001, Fat Joe revealed that he has yet to recoup his expenses, with his statements from the labels still showing outstanding debts.

Transitioning to a discussion on the advantages of independence, Fat Joe highlighted his positive experience with EMPIRE, an independent distribution platform.

He outlined the financial gains achievable through independent releases, citing examples of substantial earnings despite lower sales volumes compared to major label releases.

“In the independent sphere, I have the autonomy to release albums through platforms like EMPIRE,” Fat Joe remarked, emphasizing the financial rewards of retaining control over his music. “Despite lower sales volumes, I’ve reaped significant financial rewards, which underscores the advantages of independence.”

Fat Joe’s revelations underscore the complexities and challenges artists face within the music industry, prompting discussions on fairer practices and empowering artists to take greater control over their careers.