Different Circles

“Well ... no,” Matt said. “I kind of assumed you paid them a lump sum at the beginning and that was that.”

“You assumed wrong,” Jake said. “They demand royalties for such a service, and, in a way, I’m glad that they do. Having the amount of profit they make from one of our releases be tied to how well they promote the release is a good thing. If we just paid them a lump sum at the beginning, what motivation would they have for pulling out all the stops?”

Matt nodded as he heard this. “I guess that’s a pretty good fuckin’ point,” he had to admit.

“All the things you learn when you go independent,” Pauline said. “In addition to the band royalties and the promotion royalties, we also pay royalties to Obie II for the use of his recording studio.”

Matt looked at her. “Ain’t that the dude you’re boning?” he asked her. “The one who knocked you up?”

“That’s right,” Pauline said. “The dude I’m boning.”

“He fuckin’ charges you for using his studio?” Matt asked, incredulous.

“He is a businessman as well,” Pauline said simply. “We occupy his studio for months at a time with each release, preventing other clients from using it while we are there. We utilize the services of his technicians, who must also be paid. Obie is not going to do this just because I let him hose me down on occasion and I’m raising his daughter.”

“That’s cold,” Matt said, shaking his head at the injustice of it.

“It’s a cold world,” Jake said. “We’ll offer you twenty percent, just like Brainwash.”

“I gotta have more than that,” Matt said. “I was making thirty percent with this last CD and twenty-eight was too fuckin’ low for me to consider.”

“We’re not going to pay you thirty percent,” Celia said. “Not when whatever label we negotiate with for MD&P is going to demand at least twenty-five.”

“And there are a few things you’re not considering here, Matt,” Jake added.

“Like what?”

“Like the royalty rate we pay you will be set in stone,” Jake said. “We’re not like National or Aristocrat when they sign an artist to their label. There are no recoupable expenses in our deal except for any advance money we would give you. No breakage fees or stocking fees or fucking housing and limo clauses. There are no entertainment expenses. There is no distribution of touring costs because our contract would not include touring. If a tour was going to happen, that would be negotiated separately under a different contract.”

“And, in addition,” Celia put in, “you retain the rights in perpetuity to your own music. We can’t let them use it in a car commercial or some Pixar movie’s soundtrack. We can’t keep you from performing your music or selling the rights to someone else. Your music is your music to do with as you please.”

“So, you see, Matt,” said Pauline, “our twenty percent is really twenty percent. National’s thirty percent they were giving you was actually more like twenty-five when you added in all those recoupables and fees and other bullshit.”

“I see,” Matt said slowly. “I still can’t go twenty percent though. That’s insulting to me.”

The four owners looked at each other, passing around a bit of silent communication. Celia’s thought on the matter was quite easy to pick up. Fuck him then, was her take. There’s the door. Nerdly and Pauline, however, were a little kinder—or at least more profit-oriented—in their thoughts. We could go a little higher, they both broadcast. Just a little.

“Twenty-two percent,” Jake offered.

“Twenty-five,” Matt countered. “That’s the lowest I can accept.”

Another look was shared. Though Matt was not, by any means, negotiating from a position of strength—KVA had absolutely nothing to lose by telling him to take that flying fuck—nods were given by all but Celia. Perhaps it was lingering kindness in their hearts. Perhaps it was nothing more than cold, cool calculation.

“All right,” Jake said with a sigh. “If we agree to sign you at all, the royalty rate will be twenty-five percent.”

Matt smiled for the first time in days. “Now we’re talking some business,” he said. “What happens next?”

“Now that we have the basics of an agreement,” said Pauline, “we’ll call an end to the meeting. You head on home, or wherever it is you go when you’re not here, and I’ll give you a call later today, after we’ve had a chance to discuss the issue and vote on it.”

“And you’ll know by today?” Matt asked.

They all nodded. “Probably by the time you get home,” Jake said.

“Why don’t I just wait until you make your decision then?” Matt asked. “I can kick it in that front office until you have your vote.”

“Because we can’t guarantee that we will make the decision right away,” Jake said smoothly. “Some of us might want to sleep on it.”

“Oh ... well, I guess that makes sense,” Matt said, clearly not happy, but not protesting either.