Chance the Rapper and Former Manager in Court Over $3.8 Million Dispute

Chicago rapper Chance the Rapper is currently embroiled in a civil trial with his former manager, Patrick Corcoran, too known as Pat the Manager, over $3.8 million in alleged unpaid commissions. The case, unfolding in the Circuit Court of Cook County, Illinois, centers around a disputed oral agreement and the absence of a formal written contract.

The Core of the Dispute

According to court proceedings, Corcoran claims he and Chance reached an agreement in 2013 where he would receive 15% of the rapper’s net profits across all income streams, including a three-year post-termination “sunset clause.” Corcoran is seeking $3.8 million in unpaid commissions stemming from this alleged agreement. Music Business Worldwide reports that Chance does not dispute the 15% commission arrangement but denies any agreement regarding the sunset clause.

Lack of a Written Contract

A key point of contention is the lack of a written management contract. Corcoran testified that Chance consistently refused to sign written agreements with professionals in his circle, including his music attorney, business manager, and booking agent. MBW highlights that Corcoran framed this pattern as a potential attempt by Chance to avoid commitments.

Chance’s Testimony

Chance testified that he and Corcoran operated on an “at-will agreement” that did not address termination. He stated he consistently paid Corcoran 15% of his net proceeds from 2012 until 2019 and that Corcoran was the highest-paid member of his company, Chance the Rapper LLC. The Chicago Sun-Times reports that Chance claims he was unaware of any sunset clause. “We never described it as a contract until he sued me,” Chance testified.

Trial Timeline

The trial began last week with Corcoran taking the stand, followed by Chance’s testimony on March 10th. The trial is expected to last approximately two weeks. Music Business Worldwide is covering the case, which has been ongoing since 2020.