Chance the Rapper wins ruling against ex-manager Pat Corcoran over merchandise profits

Chance the Rapper won a ruling against former manager Pat Corcoran in Chicago on October 13, when a judge found that Corcoran breached his duties by taking commissions from vendors handling the artist’s merchandise. The judge ordered Corcoran to surrender those commissions and related management fees, with the amount still to be calculated.

Chance said in a statement that he was grateful to close this chapter of his life and hoped eventually to tell his side of the story. Corcoran’s spokesperson emphasized that the court rejected Chance’s claim for more than $10 million in damages.

What Judge James Hanlon ordered over the merchandise business

Cook County Circuit Court Judge James E. Hanlon Jr. decided the remaining breach-of-fiduciary-duty claim after a judge-only proceeding in May. He found that Corcoran’s merchandise company took commissions from vendors on Chance’s orders, describing the payments as secret profits from business Corcoran managed for the artist.

Corcoran must surrender the vendor commissions at issue and forfeit his 15% management fees tied to merchandise during the relevant period. The judge also ordered him to transfer a domain used for Chance’s merchandise and branding business.

Why the ruling is narrower than Chance sought

The judge rejected Chance’s requests for punitive damages and for Corcoran to forfeit all compensation from their working relationship. Chance’s team had sought more than $10 million under that broader claim. The ruling said Corcoran earned more than $10 million managing Chance’s music, touring and merchandise businesses during the period the judge considered.

Hanlon said Corcoran owed fiduciary duties across those three areas of work but could pursue investments outside them. According to Billboard, the judge cited conflicts between Corcoran’s testimony and other evidence, including texts about seeking an equity stake in UnitedMasters and differences in how he described his duties at the two proceedings.

Corcoran’s spokesperson said Chance still had to establish harm in the limited merchandising areas covered by the order. The judge’s finding about vendor commissions was confined to the merchandise business; it did not establish wrongdoing in Corcoran’s outside ventures.

How Chance and Corcoran’s dispute reached court

Corcoran sued in 2020 for nearly $4 million in commissions, according to Billboard. His demand included payments after their relationship ended under an alleged sunset clause that Chance disputed. Chance countersued. Their management arrangement was a handshake deal without a written contract, the outlets reported.

In March, a jury rejected Corcoran’s claims for additional commissions and awarded Chance $35 on some counterclaims. The fiduciary-duty claim was left for the judge, whose October ruling addressed the merchandise commissions and fees now awaiting calculation.