1. The suspicion of pressure of the Thailand incident

◎ The members didn’t have a choice but to act out the Thailand incident because of pressure from Stardom?

To absurdly suggest that the label instructed the members to have improper manners and to talk rudely when they were called as representatives of K-pop by the foreign media outlets is no different from criticizing the time we spent forming, producing, and sorting out difficulties with Block B. Please be aware that blind, indifferent scandalous words that are being said without understanding the situation will not only harm the outcome of the situation, but also Block B.

Even  through the restrictions and movements to kick the members out after the Thailand incident, Stardom protected Block B and made much effort to put them back on stage. We wish to state that saying that Stardom pressured them to do so is unfair, and that it is an obstinate assumption.

2. Calculating Block B profits after debut

◎ The Block B members didn’t receive anything for 1 year after they debuted even though they had various activities?

Us Stardom Entertainment calculated all the profits for our label artist Block B without leaving out anything. Out of the 1 year and 7 months of activities since they debuted, excluding the 8 months they spent reflecting because of the Thailand incident leaves less than 1 year of activities. Despite this, we gave them 275,414,892 KRW. (Excluding personal allowances, presents, and various costs)

When they were active mainly on public broadcast shows to be recognized by as many people as possible rookies, their pay was barely about 100,000 KRW per show. This is incredibly lacking to cover the various costs, not even the on-site process fees.

As an example to let you understand more, (even though this is not included in the calculations of the profit), the operating costs back then were about 70,000,000 KRW – 100,000,000 KRW per month. To manage the team and prepare for the next album with the sales from Block B is impossible from the beginning. It’s like the unwritten law of the music market to continuously invest and bear with losses for about 1-2 years after debut during the process of becoming stable.  (As a result of this cost expenditure, we are attaching the detailed statement from June 2011 below)

Even the accumulating deficit, after the Thailand incident in February 2012, our label made a shocking decision to write off all the money from the investments from before debut, the money paid in advance, and the accumulated deficits while the members were promoting to boost their morale and to motivate them through fast calculations.

The calculations were transparently carried out except the direct cost of the relevant event performances and, and there were no disputes afterward of part payment.

On the calculations, we want to clearly reveal that on March 2012, we agreed with the parents’ visit that instead of the base of paying 1 month, the payments would be done quarterly. 

The schedule and payment of June 2011

● The MatchUp appearance fees were 193,400 (after taxes) per episode unrelated to the number of recording days.

Expenses for June 2011

Compared to the income of about 330,000 KRW, the expense is about 80,000,000 KRW. Every month, the fixed expenses are about the same.

The fact that the procession funds, along with the effort as if we were raising our own children, accumulate in the beginning of the debut period is a difficulty that all producers face, not just Stardom.

Stardom paid 1,631,024,966 KRW just for the producing and promotion of the 4 albums that Block B released. Not only so, costs from activities went much over about 200,000,000 KRW, but we believed that it was investment for the future of the members, and brought our personal funds. We also supplied our own money for the members’ living expenses as well as their utility bill without deducting it even once. Excluding the extra indirect expenses and personel, and adding just the above expenses, the cost exceeds well over 20,000,000,000 KRW.

3. The different between public broadcast and events

◎The different between public broadcast and events

On the point that ‘It makes no sense that Block B had no profit even though they were at many events’, we want to reveal that most of the schedules that Block B had were not ‘events’ but ‘public broadcast’. The difference between the public broadcast and events is the existence of the broadcast station and the broadcast station camera. If the broadcast station planned and filmed the event through the broadcast camera and it was broadcast through a broadcast station, even though the name may be ‘OO Festival’, it is considered a public broadcast. For Block B, since they were rookies in the first year, the payment is merely about 100,000 KRW per event.

4. The members paid from their personal funds for their promotional activities?

◎ The practice room, security deposit, dorms, food, and stylist fees were all paid by the members’ personal funds?

We have proof that we spent money on their Hair and makeup (Isis Hair, monthly 10,164,000 KRW during promotional periods), clothing costs (38,156,200 KRW for production costs during promotions, and at least 5,000,000 KRW per month for a stylist), and the food and manager’s company card (21,631,318 KRW for promotions), and other continuous expenses.

This does not include the production costs of the album (song supply, recording booth management, mixing, A&R and domestic and foreign worker management), or music video (at maximum about 100,000,000 KRW per video).

Stardom has recruited the choreography and vocal trainers as a regular employee. The dance practice room is managed in two places inside the company and in an alliance.

We also use a recording booth in Dogok-dong in addition to the standard recording booth in the company, and we have invested our personal funds (not the income from Block B, etc)  to transfer the separate practice room, recording booth, and working room into one place in March. We are working our best not just to ensure profit, but for the welfare of our artists.

For investing on the stage, for the past month we paid the choreography team 29,480,000 KRW to support the best picture no matter the event or public broadcast.Even other than our own recording booth, we were not stingy in the extra support for the studio and the engineers to make the best quality music in and out of Korea.

Other than that, even if artists requested to work outside, we always considered their opinions.

5. The swindling of the money by Mr. Lee

Mr. Kang, who used to help Mr. Lee by providing him with the deposit bank, has left our company. While he was working in the company, he managed the Block B members and has shifted responsibility of the points that were due to his actions to the company.

The parents’ opinions that ‘if the money is swindled, Block B can be hurt’ was taken into consideration, and we agreed on the point that they reached on postponing legal procedures. Our label completely supports the side of the parents in the events after the indictment, and we have made it clear we will not avoid any legal or moral responsibilities.

The victims (the parents) and the assailant (Mr. Kang)’s position will be updated rapidly after the prosecutors’ investigation.

6. The promotional clothes for Nillili Mambo

◎ During the Nillili Mambo promotions, the members only wore the clothes they had in the music video?

Block B has an exclusive stylist team called ‘F.Choi’, and as you can see above, they produced 7 sets of outfits for each member during the Nillili Mambo promotions.

The point that they only had one set of clothing is not only an insult to Stardom, but also to the hard work of the stylist team.

7. Only the members went on their overseas schedules without the managers

◎ The members went without their manager for oversea schedules?

On artist promotions, the manager, stylist, and hair and makeup team is a standard staff composition that must always be together. We have proof on the flight and dorms that there were at least 16 to at most 22 staff that were with them every time.

8. Fanclub foundation fees

◎ The label took all the fanclub foundation fees?

The goal of the fanclub registration fees was to produce the fanclub items that were sent in December 2012, and for the progression of the fanclub inauguration ceremony. The inauguration ceremony for the 1^st official BBC was planned to be in April 2013, and we were in talks with the Kyunghee University to use their Hall of Peace.

9. De Factor power

◎ The contents on the de factor power is only excuses from the label and is fiction?

In the constitutional country of the Republic of Korea in 2013, the existence of a mastermind in the back pulling the strings is a cancerous existence that should have been purified from the music industry from the beginning. The existence illegally breaches the ‘contract’ that is the base of all business understandings’, misleads the media with lies, and brings enormous harm to the label, its employees, and even the hoobae artists.

Us Stardom highly enforced the internal censorship and verification, and promise to work our best to expel the mastermind with the cooperation of the Singers’ Association, the Entertainment Producer’s Association, and the Association of Phonogram Producers to eradicate such wicked deeds. 

Refer to the article below ▼ 


Stardom reports the masterminds of the Block B injunction request to the prosecutors 

[Newsen Reporter Lee Min Ji]

It has been reported that Block B’s label has filed a lawsuit against the former CEO Mr. Kim, and others with the prosecutors. 
Block B’s label Stardom reported the previous CEO Mr. Kim, manager Mr. Lee, and Mr. Kang to the Seoul prosecutors and requested investigation as the Block B members as witness. Stardom revealed, “We suspected a mastermind when Block B filed an injunction on the label’s exclusive contract, and requested Block B’s letter of attorney from the legal deputy on the other side, but we never received it.” They added, “Immediately, we met up with the parents of some members, but even they did not know who was paying for the charges, who had lead the charges, and even where the members. It was all a very questionable situation.”
Since then, they had various documents going back and forth, but they only received the letter of attorney from the members and some of the parents at the injunction. The date had been forged, so it has been determined that formal documents had been forged as well. 
Stardom said, “Mr. Kim and the other previous employees that had been pointed out as the masterminds had purposely deceived the label and embezzled part of the event payment or omitted them from the calculations. After leaving the company, they used that to deceive the Block B members and we have revealed that they have actually led the cancellation charges.”
They revealed that they had submitted the related documents and proof to the court and the prosecutors. Stardom revealed, “On the basis of various people in the industry, Mr. Kim and 3 others that have been pointed out as the masterminds have been publicly mentioning that they were planning to take Block B out to the broadcast workers since October last year. Just about everyone in the industry knows.” 
They continued, “They used the fact that the members are still young and innocent to deceive Block B. We hope that the masterminds who encouraged the friction with the label gets lawfully punished by the judge, and that this will never happen again.” 

Lee Min Ji oing@
http://www.newsen.com/news_view.php?uid=201302251551182410

10. Request

◎ Request

From the beginning, us Stardom has said that the Block B members are merely puppets and have concluded that this was the result of the scheme that had been planned for months by the masterminds.

We predict that the Block B members will be unfamiliar with the truths explained as above, since they have never received truth as it is for months.

If they fall with the people who are malevolent with their plans and distorted perspectives, it is easy to be brainwashed as if your clothes gradually get wet by a drizzle. They will realize the truth someday, but if that point is sometime that is too late and they cannot return, the damage will be not to the controllers that have hidden like migratory birds in the back, but to the members.

We are deplored by the adults who are leading and controlling the innocent members with the society’s darkest habits, and are taking actions.

The success or failure of the long case may just be greed for the masterminds as if it is lottery, but for the members it is a problem that has their dream, their place as a proper member of society, and for their future.

The controllers. We sincerely hope that they realize that their ‘justice’ and ’loyalty’ are no different from the violations of law from the groups that we only saw on news, and that they can come to the bright world and be honorable.

This website has been created to report the accurate truth about the rumors that have been coming up infinitely about Block B’s request of injunction on the exclusive contract.

We plan to continuously update it as related to the situation’s progress.

Related questions: [email protected]

Source: http://www.stardom-ent.com/
Translated by: jennyjjong@tumblr

This information was sourced from http://stardomfamily.tumblr.com/