November 03, 2012 11:55 AM by Martha Zaborowski
Toni Braxton, star of Braxton Family Values on WE, recently addressed the truth about her bankruptcy on her Behind the Music special on VH1. Why did she really have to file for bankruptcy after selling more than 20 million records?
It wasn’t because of over-spending, Toni insists. Toni revealed her record contract with Arista and LaFace prevented her from making a profit. The money she was making from selling records was first going into her promotion costs (which included wardrobe, travel, etc.), and then she would pocket the rest. Unfortunately, because of heavy promotion costs, Toni wasn’t netting much: only around $2,000 after her first record. Toni confronted Arista and LaFace and demanded she make more money off her records. They refused to budge, so her business manager told her she needed to file for bankruptcy in order to pay her bills.
After filing for bankruptcy, Toni was vilified in the media as an over-spender with people like Oprah weighing in and questioning Toni’s purchases. Oprah famously asked Toni why she felt the need to buy Gucci flatware–to this day, Toni feels humiliated by Oprah’s one-sided questioning.
LA Reid and Babyface were heads of LaFace when Toni was their artist, and Babyface blamed Toni’s record contract on “bad management” and “someone not watching [Toni's money]” closely. Eventually, a judge forced LaFace to change her contract to a $20 million contract for future albums.
Sadly, Toni had to file for bankruptcy a second time after she was diagnosed with Lupus (and had a heart attack!) while headlining a Vegas show. She had to drop out and leave her contract early, and couldn’t pay the fees and expenses she owed the people behind the Vegas show.
Did you watch Toni Braxton’s Behind the Music special? What do you think about her bankruptcy cases?
Want more? Follow our tweets on Twitter and like us on Facebook! Click here for more information about Braxton Family Values. For other great reality TV news, please feel free to check out SirLinksALot: Reality TV.
Photo credit: WE TV