What Young Thug’s RICO Plea Means for Hip Hop Record Labels
By Ashley Klein; Photo Credit: Miguel Martinez/The Atlanta Journal-Constitution/ZUMA
Almost a year after opening statements began for Young Thug’s criminal trial, a plea was entered on Young Thug’s behalf that ended his trial.[1] Young Thug, born Jeffrey Williams, and 27 others were arrested in 2022 under a 56-count indictment for violations under Georgia’s Racketeering and Corrupt Organization Act (RICO).[2] The prosecution’s theory was that the record label started by Young Thug, Young Stoner Life (YSL), was a front for a street gang that operated in Atlanta.[3] Young Thug entered a blind plea in his case, after a severe misstep by the prosecution opened up the question of a mistrial.[4] His sentencing included 15-years of probation with multiple special conditions.[5] Some of the notable special conditions are: Young Thug is not allowed to be in Atlanta absent some special circumstance, he must give four anti-gang related events in Atlanta a year, and he is not allowed to be in contact with anyone, outside his family members, that are involved in gang related activities—including those indicted in 2022.[6]
While these conditions might ensure the judges view of Young Thug’s retribution and rehabilitation, they leave open a lot of questions for the YSL record label. In 2016 Young Thug launched YSL records—located in Metro Atlanta—as a label imprint of 300 Entertainment, whose parent company is Warner Media Group.[7] As a label imprint, YSL is not in charge of distribution or copywrite of the music produced under it, however it is responsible for the promotion of music.[8] As the founder of the YSL label, Young Thug is involved in the promotion of artist signed to his label.[9] Since the theory of the RICO trial revolved around the YSL label being the front for a street gang, and part of the conditions of Young Thug’s probation is that he is not allowed to be in Metro Atlanta and is not to have contact with anyone associated with gang activity or with the YSL members who were indicted, it leaves the question open of how 300 Entertainment and Warner Brothers will address the current contracts with artists signed to the YSL label.[10]
While contract renegotiation is somewhat common in the music industry, having to potentially dissolve a record label due to a criminal prosecution is not.[11] While producing music may not be on the fore front of any of the artists minds following the trial, at least some of the Artists signed to YSL will undoubtedly want to produce again. When this time comes, Warner and 300 Entertainment will be faced with many challenges involved in reorganizing and rebranding artists from the YSL label following the results of the RICO trial.
Ashley Klein is a 2L at Vanderbilt Law School. She plans on focusing on Corporate Restructuring after law school.
[1] Erik Ortiz, Inside Young Thug’s choice to take a plea deal and reunite with family, NBC News (Nov. 2, 2024), https://www.nbcnews.com/news/us-news/young-thug-plea-deal-georgia-trial-probation-rcna178405.
[2] Michael Saponara, A Timeline of Young Thug’s YSL RICO Trial, Billboard (Nov. 1, 2024), https://www.billboard.com/lists/young-thug-ysl-rico-trial-timeline/may-11-2022-gunna-turns-himself-in/.
[3] Id.
[4] Id.
[5] Young Thug & YSL Updates (@Thuggerdaily), X (Oct. 31, 2024, 8:57 PM), https://x.com/ThuggerDaily/status/1852167972481056884/photo/3.
[6] Id.
[7] Jessica McKinney, Inside the Snake Pit: The Rise of Young Thug’s Young Stoner Life Records, Complex (Nov. 25, 2020), https://www.complex.com/music/a/j-mckinney/young-thug-ysl-label-story-interviews; Jem Aswad, Warner Music Group Acquires 300 Entertainment, Home of Megan Thee Stallion, Young Thug and More, Variety, (Dec. 16, 2021), https://variety.com/2021/music/news/warner-music-group-acquires-300-entertainment-megan-thee-stallion-1235134996/.
[8] McKinney, supra note 7.
[9] See id.
[10] See Aswad supra note 7; Young Thug & YSL Updates (@Thuggerdaily), X (Oct. 31, 2024, 8:57 PM), https://x.com/ThuggerDaily/status/1852167972481056884/photo/3.
[11] See Debra J. Aron & Steven S. Wildman, Labels, Artists, and Contracts in Today’s Music Industry: An Economic Analysis, Charles Rivers Assoc’s, Aug. 2023, at 4, https://media.crai.com/wp-content/uploads/2023/08/04133426/2023-08-01-Aron-and-Wildman-response-RIAA-Paper-FINAL.pdf.