Details of TVXQ’s slave contract have been revealed. Its stunningly ridiculous the amount of total control SM Entertainment (SM) has/had over these guys.
There are ludicrous clauses in their contract with SM such as the fact that they have to follow the word of their manager as if he’s God, any days that they miss without an approved reason will be added to the length of their contract, and anything that goes on “inside” cannot be revealed to those “outside”. The last one sounds especially sinister considering they were still technically children when they signed with SM.
In addition, according to the slave contract, SM is legally allowed to give songs produced by DBSK to other artists signed to SM apparently without DBSK’s approval.
Unless they are permanent members of a TV show, they don’t get paid for their appearances on that show at all according to the contract.
What’s worse is the way the income is split between themselves and SM. For example, if they sell 50,000 – 100,000 copies, DBSK only gets 2%. Then that 2% has to be split 5 ways among the members, according to translated reports.
SM isn’t even paying for the manager. Dong Bang Shin Ki has to pay for the manager, the coordinator and all food costs out of their profits/pockets. This is the same manager whose word they aren’t contractually allowed to challenge, by the way.
If DBSK ever wanted to leave — even if the breakup is SM’s fault — DBSK has to pay SM 3 times what SM claims they invested into the group, and 2 times what they would have made had the split never happened. This clause is so ridiculous that it should be illegal.
In my opinion, this means SM can take all the money being generated by a highly popular group like TVXQ, and not apply any of it to the amount of money they claim to have invested into TVXQ. Its like having a debt that absolutely never goes away no matter how much money you make for the company.
Whatever SM invested should be deducted from the massive amounts of revenue being generated by TVXQ. At this point, they shouldn’t owe SM anything.
Many people thought these type of contracts were bad, but I don’t think people realized just how much of a stranglehold SM has over DBSK and their other artists.