In the latest episode of behemoth record companies gone wild, Universal Music Group has allegedly strong-armed radio promoters into creating false invoices in order to recoup phantom promotional costs from their artists. The landscape they inhabit is already sketchy, as they use the radio promoters to get around a Federal law prohibiting radio stations from taking money to play certain songs. The record companies pay the radio promoters each time one of their songs is played and the radio promoters, in turn, pay the radio stations thousands of dollars for advance play lists. These payments are believed by most with a brain to be wildly disproportionate to the actual value of the play lists. The radio promoters are essentially strawmen in this scenario that ensures commercial radio will never play anything you actually want to hear.

Two of UMG’s long-standing radio promoters are now suing the company for $100 million for allegedly forcing them to create false invoices used to squeeze more money out of their artists. Under the typical major label contract, the artist receives no royalties for a release until the label recoups marketing, promotions and recording costs. This is why you hear stories of artists owing their labels money even though their release was successful. Under this alleged scheme with the radio promoters, UMG would use the false invoices to inflate their promotions costs and thus reduce the amount of royalties paid to their artists. When these two radio promoters refused to go along with the scam, UMG allegedly fired them and told the radio stations not to work with them ever again.

To put a face on the megalomaniacal UMG, their labels include: Geffen, Interscope, Lost Highway, Island Def Jam and Motown. Their artists include: Elvis Costello, PJ Harvey, Sonic Youth, Nelly and Queens of the Stone Age. How long before Josh Homme rolls up into Interscope with a baseball bat? I'll be betting on Mr. Homme when that happens.