Article: Is it possible for Blackpink to renew contracts with YG? 100 billion won overseas bet rumors
Source: Munhwa Ilbo
Newly leaked reports are raising concerns over YG’s future as a company.
On the 19th, NH Investment and Securities issued a report stating that “despite the existence of momentum, YG’s stock price is undervalued compared to competitors reflecting concerns as Blackpink’s contract expiration approaches in August but smooth progress is expected.” However, it’s suspected there will be considerable pains until Blackpink’s actual renewal. This is because they have to prepare to give them a huge down payment in the overseas market so YG will have to bear a huge burden to gain an edge in the money game.
According to Munhwa Ilbo‘s coverage, the process of renewing Blackpink’s contract with YG is not expected to be smooth. This is because the ‘ransom price’ for Blackpink who have been reborn as a global star over the past 7 years has risen tremendously.
An industry insider familiar with overseas market revealed, “I know Lisa who has absolute influence in the Southeast Asian Market including hometown Thailand has been offered guarantees of 100 billion won in China and other countries. Considering the size of the market, that’s difficult to handle.”
Of course Blackpink members don’t make the decision to leave the agency simply due to the size of the down payment and it’s easier to maintain the group’s original color by joining hands with their original agency YG who own ‘Blackpink’ trademark, however, it’s inevitable YG will need to offer an appropriate level down payment indicative of their status and artist’s pride.
Even considering such a situation, industry insiders predict “YG will have to offer a minimum down payment of 20 billion won per member in order to catch Blackpink.” Currently, they’re on a world tour that mobilizes 1.5 million people. With an average of 120,000 won per ticket, concert sales alone amount to 180 billion won. In addition, considering album sales, music revenue and other schedules such as CFs, the symbolism they will gain to keep Blackpink including their market cap as a listed company, YG must put down an astronomical down payment to renew their contract with Blackpink.
Another industry insider revealed, “Their contract renewal period is usually 2 to 3 years. Assuming YG spends at minimum 80 billion won total down payment to keep Blackpink as rumored, we need to calculate whether they’ll even able to make a profit within this period.”
YG recently announced plans to launch a new girl group ‘Baby Monster‘ that also weighs on this analysis and is a paving stone in case there are difficulties renewing contracts with Blackpink in the future. Compared to other agencies, YG has a thin player base since recently, the number of groups that belong to the company decreased significantly with even iKON leaving the agency. In this situation, if Blackpink can no longer accompany YG, they will inevitably suffer a huge blow. If this happens, there’s a huge possibility they will try to minimize the damage by using ‘Baby Monster’ as an alternative.
Meanwhile, Blackpink’s current world tour is scheduled to end in June, 2 months before the expiration of their contracts. This is why YG has no choice but to be busy.
- 100 billion?
- Has it been 7 years already?
- Daebak… Lisa really received a 100 billion won offer.. crazy
- Lisa holds the key to it all ㅋㅋㅋㅋㅋㅋ
- She came up thanks to Teddy and YG but is planning to kick them out now ㅋㅋ
- The extremely high ransom for Lisa is the true variable.. good luck ㅋㅋㅋㅋ
- Probably why they’re putting out Baby Monster so quickly ㅋㅋ..
- Just get Blackpink out under Teddy!!
- They need to start with changing out their the song and MV.. it’s all the same.. f*ck
- I know they came up thanks to Teddy but they need to get away from him now. I heard from interviews that Teddy was responsible for their entire concept, style, and songs since debut without YG’s input but I want to see other styles now.. we’re tired.
- But why can’t she though? If she’s really thinking long-term for her career, she sings well and would do great with her solo schedules.
- If Blackpink leave YG and Teddy, say goodbye to their color.. I think they’ll stay until they disband.
- Eh, Blackpink=Teddy, if they leave YG they’ll no longer be Blackpink
- But isn’t YG at the level where they can do without Blackpink?
- I don’t think any other agency can handle them..
- Do foreign investors or agencies even have the capability to handle Blackpink? They’re global stars because of YG ㅋㅋㅋ
- It’ll be hard to renew but renewing is the only win-win for both.. they won’t make it outside YGㅋ
- Bangtan didn’t re-sign either, they only renewed for a small amount of time..