Recoupable Costs
Expenses a contract deducts from artist royalties before any payment
Related
Recoupable costs are expenses a contract allows the label to recover first from artist royalties: advances, recording, mixing, videos, promotion and tour support. They are not ordinary business overheads but items written into the deal and borne by the artist's future income.
The usual mistake is to think money spent by the company is a non-repayable investment: anything listed as recoupable is deducted before profit is shared, and some deals include costs beyond direct expenses. Get the full schedule and ask what is not recoupable, whether interest applies, and whether costs cross-collateralise across works.
Read deeper → recoupment
Sources
- 可回本成本与录音合约扣项，参通行音乐产业教材；本文为通识说明，不构成法律意见
Used for fact-checking only; all prose is original.