Fastball can’t get paid.<\/p>\n
I got a call from their manager Ron Stone today. The band was due their 20k on 1\/1, Pledge said to wait a while, they’d dribble it out over time. And then when Ron pushed for the money, Pledge went silent, it’s been three weeks now without a return phone call.<\/p>\n
So obviously they don’t have the money.<\/p>\n
But Fastball has already spent most of it! Making product to fulfill their obligation to their fans who pledged. It’s not Pledge’s money, other than the small percentage the service takes as a fee. They hold the money as a fiduciary. But obviously they’ve spent it.<\/p>\n
But Fastball is a small player in their ecosystem, what about the big acts? And do you mean to tell me you don’t have $20,000?<\/p>\n
This is just like those festivals that spend the ticket money and then go bust. Assuming the ticketing company coughs it up to begin with.<\/p>\n
Then again, these entrepreneurs are not bankers, they’ve got an idea and…<\/p>\n
If you don’t have the money, you shouldn’t be taking new clients. And if you don’t have the money…where is the big windfall for Pledge Music gonna come from? They’ve got a fixed percentage, are they suddenly gonna get a zillion more acts so they can pay Fastball its measly 20k?<\/p>\n
Or are they waiting for a buyout…<\/p>\n
Well who is interested in this low margin business to begin with? And if the present executives can’t make it work, why should someone with a deeper pocket be able to?<\/p>\n
Or maybe Pledge just has incompetent executives. Well, aren’t there investors who realize this?<\/p>\n
It’s one thing to run out of cash, it’s quite another to use other people’s cash to keep the lights on. It’d be like a bank blowing all your cash and not telling you until it was gone to boot! Then again, the government protects six figures of investment in banks. Beyond that…they figure you’re sophisticated. Come on, are musicians financially sophisticated? If so, they’d be doing something else. Pledge is not only taking advantage of the players, but stealing their hard-earned cash.<\/p>\n
And you know Fastball’s fans are gonna blame the band, not Pledge. And how is this going to hurt the band’s image? And their future financial prospects?<\/p>\n
Beware.<\/p>\n