Usually the first of a recording artist's contracts with a major record label. In lieu of high royalties or other desirable rights, the label will promise to develop the skills and public profile of the artist. These types of deals are sometimes most helpful to the artist, but the label often takes control of the artist's management and publishing rights (dubious practices that have been compared to having a mini-monopoly with respect to the artist). Historically, such deals have been abused by both record labels and managers. Motown records made extensive use of this type of contract, and many argue that is was the sole reason for the massive success of the label in the 1960's. Berry Gordy, Motown founder, likened his approach to digging for oil and discovering a field full of gushers.(1) Later, Motown was accused by some of its artists of practising professional extortion.

To give an idea of just how controlling such arrangements can be: After departing Motown's roster in less-than-favorable circumstances, Florence Ballard was unable to refer to her hard-earned reputation as part of the Supremes in any future professional ventures. Such a condition had been one of the many clauses in her contract and her legal counsel failed to free her from said clause. Some have argued that this very element of her contract is what kept her from re-establishing herself as a professional singer.

Artists who had signed notorious development deals

Wham! Andrew Ridgeley (top) and George Michael on the cover of their second album WHAM! was a band formed in 1981 by George Michael and Andrew Ridgeley. ...

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The Motown roster of the 1960's Motown Records, Inc. ...

Sources

1. "Divided Soul: The Life of Marvin Gaye" - David Ritz 1984 David Ritz is a very successful author who based his books on soul music legends like Ray Charles, Etta James, The Neville Brothers, Smokey Robinson and Aretha Franklin. ...