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Chance the Rapper Wins Second Trial Against Pat the Manager Over Merch Vendor ‘Secret Profits’

Developing story first seen 4 hours ago

Billboard ·

Chance the Rapper has won the remaining part of his legal case against former manager Pat Corcoran, with a judge finding that Corcoran breached his fiduciary duties by taking undisclosed payments from merchandise vendors. The ruling orders Corcoran to surrender those profits and return merchandise commissions, with Chance’s representatives estimating the award at about $1.5 million.

The amount will be calculated using records at a court conference scheduled for late November; the judge said uncertainties about payments should count against Corcoran, whose company kept the records. The award is below the nearly $11 million Chance sought because the judge found Corcoran’s duties covered music, touring and merchandise, but not his other investments. The case began in 2020 with Corcoran’s claim for nearly $4 million in commissions; Chance countersued, and a jury previously awarded him $35 on other claims.

  • A judge found Pat Corcoran breached duties to Chance the Rapper.
  • Corcoran must return secret merchandise payments and commissions.
  • Chance’s representatives estimate the judgment at about $1.5 million.

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Chance the Rapper is the stage name of Chicago musician Chancelor Bennett. Pat Corcoran, often known as Pat the Manager, formerly managed his career, helping oversee areas such as music, touring and merchandise.

The dispute began in 2020, when Corcoran sought nearly $4 million in commissions; Bennett countersued over their business dealings. Their management relationship involved a duty to act in Bennett’s interests in certain parts of his career, including merchandise, while the court found it did not extend to Corcoran’s separate investments.

The case matters because it concerns whether a manager must disclose payments received from companies selling an artist’s merchandise. It also shows how the scope of a manager’s duties can affect what money may be recovered in a business dispute.

Both sides, in good faith

The strongest fair case each way — we don't pick a winner.

The case for

Chance’s case is that a manager entrusted with handling business on an artist’s behalf must disclose payments from vendors and account for any profits that may compromise that relationship. Requiring Corcoran to surrender undisclosed earnings can protect clients’ trust and discourage conflicts of interest, while limiting the award to work within the manager’s duties recognises the boundaries of that obligation.

The case against

Corcoran’s strongest case is that any repayment should be confined to proven gains from activities within the scope of his management duties, rather than extending to unrelated investments or unsupported estimates. Since Chance sought substantially more than the reported award, careful calculation from the records matters to ensure the remedy reflects established payments and does not exceed the obligations Corcoran had accepted.

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