Quote Lawrie L="Lawrie L"You know this £1m deal that the X Factor winner gets, do you know how much actually goes to the winner?'"
It depends on what is spent, and I suspect that a lot of money will have been spent already in trying to get to no 1 for christmas - didn't they drop the price of the download to 29p for this weekend ?
My cousin is a professional guitarist and has been since the early 80s when he did a lot of sessions work for all sorts of bands, most of whom were never heard of again but a typical "£1million" deal would be for an album for some fresh-faced kids, they would be put up in a rented house or apartment and spend some expensive weeks in rehearsal, then some very expensive days in a studio. They would then be taken out on tour to promote their album via shop appearances (transport, security, overnight stays) or gigs (lots of associated costs), or pay for some studio time to do some remote radio studio interviews.
For all of this time their production company would be picking up all of the bills, housing, food, security, travel, clothes - and of course if you ask an 18 year odl kid if he wants to blow a few grand in TopShop he'll snap your arm off...
...what they doesn't realise until the end of the year is that everything is accounted for and put on the tab
, that hotel room they trashed for fun, the bar bills from every outlet of Holiday Inn that they used on that UK promo tour (a lot of production companies seem to use Holiday Inn, and not the Express version either) - everything goes onto the account and just like a Ltd Company a balance sheet is drawn up at the end of the first year.
Most bands are in a deficit situation by then, their production company make sure that they are in a deficit situation, sure they've had a ball for twelve months and they have been drawing a bloody good salary from their advance for that year, but now they owe their production company - and their negotiating situation for the second album is poor, they've been promoting for a year, probably haven't written much of their own stuff (if they write at all) and all of the good stuff from their catalogue was used on the first album - the second album deal is where they really get screwed.
My cousin has a thousand stories of people you've never heard of or have forgotten long ago being screwed in this way time and time again, and every time they get a booking for another studio session they hope that the young kids they are playing for are still believing their own hype and turn up at the session very late (or not at all), still unaware that they have to pay for all the lost time.