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Deathrow's Sale Stalled By Asset Uncertainty, Koch Records A Potential Buyer printer friendly version Send this story to a friend!
Posted: 10/9/2007 7:37:22 AM by Black widow

The uncertainty of who owns what specific assets and rights to the currently defunct Deathrow Records has reportedly held up the sale of infamous label.

According to The New York Post , recent  claims by Dr. Dre over royalty  payments for The Chronic and Afeni Shakur’s (Tupac’s mother) bid for the rights of her son’s unreleased material has prospective buyers questioning what they will be getting by acquiring the label.

“What's really there for sale, what assets do they have, no one knows for sure,” a source involved in the label's sale told The Post.

Deathrow founder Suge Knight lost the label to bankruptcy in April 2006, listing debts of $137.4 million and assets of $4.4 million. 

The label, which once housed Dr. Dre , Snoop Dogg and Tupac Shakur , was a power house in the early 90’s selling over $50 million records prior to its bankruptcy filing.

Ron Lebow, an attorney  representing Deathrow bankruptcy trustee R. Todd Neilson, revealed to The Post that the label controls t he rights to roughly 10,000 master tracks. 

He also divulged that Afeni and Neilson are in negotiations over her claim and are hoping to reach an agreement soon.

Independent hip-hop label Koch Records and music publisher Evergreen Copyrights are reportedly the leading bidders in Deathrow’s auction.  The Post’s sources estimate the label will ‘fetch less than $20 million on net revenue of roughly $2 million’

Earlier this year, Evergreen bought the writers share of Tupac's catalog.

Universal Music Group owns ‘Tupac's publishing rights and retains authority for licensing it commercially’.

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