#1d media

[hoovesandfloorpaws]

Hi Paz! I remember that you’re very well versed in accounting and stuff, so I wanted to ask you to weigh in on the news that Zayn is “legally rejoining 1D” because their company had a filing concerning him yesterday https://find-and-update.company-information.service.gov.uk/company/07878173/filing-history

I’ve studied accounting, so to me this just looks like a residency country change? So I don’t understand all the fuss and people saying he’s “rejoining”, since from the company filings it seems like he has always retained his 20% of company shares and was listed as a person with significant control? This isn’t the first time that I hear about him legally leaving 1D companies after his departure from the band, but I can’t find any actual indication of that in the company statements, so maybe you could clear up the confusion a bit? 🙏🏻 Thanks a lot and have a lovely day!

Hiii Charlotte, thank you for reaching out! 🥰

First off, yes, you're completely right: Zayn hasn't "rejoined" anything. The Sun's article about it is a complete nothing burger.

All that was filed was an address/residency update for him in a role that he's always had and has never resigned from. He's still (and always was) one of the controllers (PSC) in one of the 2 still active (at least in the UK) 1D companies, PPM Music Ltd..

(^ it's also notable that for this company and also Rollcall Touring Ltd., they never changed his name from Zain to Zayn, while for 1D Media Ltd. and 1D Live LLP they did)

I saw someone on Twitter's post about this filing, too, and they had unfortunately confused the role of a director with the role of a controller (PSC).

tiny bit of additional info on PPM Music Ltd: PPM Music Ltd. (which stands for Princess Park Manor, the private gated complex they were moved into when they won the X Factor) was incorporated by Harry, Louis, Liam, Niall, and Zayn (named Zain) on 12 Dec 2011, with the listed occupation as Entertainers. It is basically the company for 1D themselves as artists and songwriters (like LT Publishing Ltd. is for Louis and like HSA Publishing Ltd. is for Harry). In all of 1D’s album booklets you can see it saying that each song which at least one member of 1D has written on, is copyrighted by this company and each yearly Turnover in the Financial Statements (Accounts) include their publishing royalties.

All of the boys were directors, controllers (PSC), and shareholders from the start.

All 5 of 1D held 12 shares per person, each share worth £1, right from incorporation. 60 shares in total. This has never changed and all 5 boys still hold the same shares today. (Liam, too; it's part of his estate) On 21 May 2016, Zayn resigned as a director. He still kept his 12 shares and stayed a controller (PSC). On 31 Dec 2022 (but only filed on 18 Jan 2023) Niall, Liam, Louis, and Harry all also resigned as directors of the company, leaving them only shareholders and controllers (PSCs). Irish accountant Alan McEvoy (*1966) and lawyer Lawrence Engel (*1971) (who's also listed as Harry's legal rep in all of his album booklets) were both appointed as directors (just like with 1D Media Ltd. in April 2016).

Today, all of 1D are still the sole shareholders, including Zayn. Harry, Niall, Zayn, and Louis are also the sole controllers (PSC). (Liam's role as a controller (PSC) sadly ceased when he died.)

About Zayn leaving 1D companies: He's only ever completely left one 1D company that is still active: 1D Media Ltd.. With that company, on 5 April 2016 (so 1 day after all of the 5 boys resigned as directors), and on May 3, 2016 there were 2 filings for Zayn to sell all of his 102 shares back to the company. He got at least £66 million for them (could be a tiny bit more; it's hard to say, because the other 4 boys also each sold 2 of their 102 shares each and we can only see the total share buyback of a bit more than £70 million. The rest of approx. £4 million (could be less) were split between Harry, Niall, Liam, and Louis, with each getting approx. £975k (could be less). This was all only finalised on 3 April 2017. Zayn was also never a controller (PSC) of that company, only Harry, Niall, Liam, and Louis. So, by April 2017, Zayn was completely out of that company.

With PPM Music Ltd., like I mentioned, Zayn only ever resigned as a director and remained/remains shareholder and controller (PSC).

All other 1D companies were either dissolved (ODOT LLP., 1D Live LLP and Rollcall Touring Ltd.) or acquired by Universal Music (One Mode Productions Ltd.).

Way more in-depth info on this will be in the H&L Companies Masterpost I'm working on, which will be linked in my taglist.

I hope this helped! x 💖

glossary: • director of a company: legally responsible for running the company and making sure information is sent to Companies House on time. This includes the Confirmation Statement and the annual Accounts - even if the company is dormant. The director is responsible for day-to-day management of the business and its operations, participates in investing funds of the company and conducting equity placements and is also higher in ranking than a controller (PSC). • controller (PSC) of a company: PSC = person with significant control. They keep track of the investments. Most PSCs are those who hold more than 25% of shares and/or more than 25% of the voting rights and/or the right to appoint or remove the majority of the board of directors. (and potentially more) • shareholder of a company: owns the company by buying and holding its shares, acting as the company's financial supporters. Anyone who owns 'shares' in a Limited Company (Ltd.) is called a shareholder. They own part of a company in relation to the proportion of shares they hold, for example: 10 shares total, 2 people who hold 5 shares each = both own 50%. Shareholders have certain rights, for example: directors may need shareholders to vote and agree to changes to the company. Shareholders potentially get paid out an annual dividend.

[hey-angel-5]

ZAYN DIDN'T COME BACK TO ONE DIRECTION!!

Sorry to break it to yall, but Zayn never left the company everybody is talking about, which is PPM Music. This company manages their music royalties, and Zayn never left.

Many years ago, the boys apparently made a deal, saying that all members have rights over every song that at least one of them wrote for the band. So Zayn gets royalties for every 1D song that Louis wrote, for example (even if he doesn't have credits).

Ok, so what changed about PPM? What's this:

Well, it's a change of address. Zayn must have become a permanent citizen of the United States, hence the change in details. He's not going back to the UK.

Wait, he really isn't back? No, he isn't. At least not for the business side of things. 1D Media is the "main" company for the band. The one they created to manage their earnings and copyright. It's been managed by their business manager, Alan McEvoy, and their lawyer, Lawrence Engel, for many years now, but currently owned by Harry, Louis, and Niall.

And yes, Niall's name changed. I have no idea why. Maybe he legally changed his name? Seems to be the case.

[skepticalarrie]

Where do you think zayn ties in to the ownership of 1d name. Do you think he sold his stake before leaving?

After leaving, but yes. Apparently he did sell his share back to the company that holds One Direction's ownership, 1D Media. Now the company is represented by Lawrence Engel and Alan McEvoy on behalf of Harry, Louis, Liam, and Niall. However, we don’t know whether he still receives royalties and profits from his time in the band. I assume he does?! But it's very unclear what sort of arrangements were made when he left. From the public information we have available though, he resigned from all 1D related companies.

[towlerknows]

1D Media Limited

I'm not keeping up with this stuff like I used to, but I was pleased to see today that the £24.7 million "contingent liability" that's been on every one of the One Direction financial statements since 2015 is gone.

No one knows what it was or whether they "won" or "lost", but whatever it was, it's been settled.

Wonder if we'll ever hear what that was all about.

[madat-55]

What does z leaving 1d media mean? Like what happens when they reunite? Unless they all leave 1d media and make another company

Hello my Anon and this is a very good question!

Let’s have a look at things: We had Zayn “leaving on March 19, 2015 and for a year, till April 4, 2016, he had full rights as well as 20% of this company (controlling the “image” and I think the money from the sales of their albums, merchandise etc). On April 4, when we had the last change in the type of the shares, (the same date that all 5 Boys stepped down as Directors and their accountant and a manager took over), we had a “redistribution” for lack of a better word of the type of shares, so Zayn only had the 10% or was it 5%???, I’m sorry, I’m too tired to check it now,) of the company.

On February 3rd this year, we had a new “redistribution” of the shares which resulted in Zayn no longer being a shareholder of this company, meaning Zayn no longer getting money from the sales of their (1D) albums, merchandise etc.

What I find veeeery interesting my Nonnie is that 1D MEdia still owns the he EU trademark for the name “Zayn Malik.” . Do you know what this mean, my Nonnie? It means that Zayn could not drop an album, or perform, or drop merchandise in EU as Zayn Malik, without the consent (and profit) of 1D MEdia. And since an artist cannot perform under two different names (in different parts of the world), this explains how just “Zayn” (the name) was created. Do you remember all the interviews/articles about Zayn dropping his last name? here is your answer!

Zayn also remains an  equal shareholder in PPM music limited (their publishing company), so he can write and publish music with the Boys. 

Why Zayn’s shares were sold/liquified/transfered now and not last April (as it would have been more logical), totally beats me. 

Keep in mind that as the type of shares was modified last April, so it can be modified (and redistributed) again. As for leaving (you mean dissolving?) 1D Media, I don’t know if 1D Media also control their brand name “1D”; if so, they’ll have to trasnfer it to another company before they move.

[hoovesandfloorpaws]

hi Paz, could you please help me with understanding louis’ business ventures? he has a record label of his own right? or does that not exist anymore? his albums are under 78 productions (afaik) so is that his label or what? he also mentioned starting a management company in 2021 but have there been any updates on that since?

sorry, but it’s all just so confusing to me 😭 the only one i know and am sure of is 28 clothing lol

hello love,

OOF, I totally get that it's confusing! It really is quite the jungle and it also took me months to sniff snoff my way through hundreds of public record documents and websites to feel like I have an okay-grasp on things 😩 so please be gentle with yourself 💖

explaining all of Louis' business ventures would exceed the frame of an ask reply i'm capable of, since Louis has and/or was in a whopping 12 companies (as of today), but I will try and give you an overview and answer your question - and as soon as I've finished & posted my upcoming H&L companies masterpost hopefully this month, you will be able to really dig in deep (◠‿◠✿)

The Limited Companies Louis has/had: 1D Media Ltd. since Dec 23, 2010, nature of business: “Performing arts”, occupation: Entertainer PPM Music Ltd. since Dec 12, 2011, nature of business: “Performing arts”, occupation: Entertainer Rollcall Touring Ltd. dissolved in 2018, nature of business: “Performing arts”, occupation: Entertainer One Mode Productions Ltd. sold to Universal Music in 2020, nature of business: “Support activities to performing arts” + "touring, merchandising (incl. the books) & recording", occupation: Entertainer Triple Strings Ltd. dormant from the start on Jan 16, 2015, nature of business: “Other amusement and recreation activities not elsewhere classified”, occupation: Musician 78 Productions Ltd. since Jan 7, 2015, nature of business: “Support activities to performing arts” + since at least May 2023, Louis’ clothing line 28 Clothing is also being run through this company, occupation: Entertainer LT Publishing Ltd. since Feb 22, 2017, nature of business: “Artistic creation”, occupation: Performer LT Media Ltd. since Jan 5, 2023, nature of business: “Artistic creation”, occupation: Performer LLPs: 1D Live LLP dissolved in 2016, nature of business: touring ODOT LLP dissolved in 2016, "was established to facilitate touring activities" and also “contracted certain touring & related sponsorship activities in regions outside of the UK/Ireland & North America” LT Touring LLP since Nov 9, 2017 (self-explanatory nature of business) LT Merch LLP since Sep 26, 2022 (self-explanatory nature of business)

-

The “Support activities to performing arts” for 78 Productions Ltd. is the same nature of business as Harry's HSA Publishing Ltd., which was founded just a few months prior. Record label things are not my personal expertise (I'm a tour- and artist manager, as well as a live show producer and accountant), but I've always understood it in the way that when it states "78 Productions" or just "78" is the label, Louis has financed certain things about the release through his own company, essentially turning it into an indie label without trademark or real branding. It doesn't have a website or any other official public platform, like officially-run social media accounts. As of today, it seems Louis uses the company purely for the purposes of financing releases when he wants/needs to.

If Louis ever planned/plans to do more with the "78" name for a label in the future, then it's defs smart to have continuously used it for releases already, though, no matter how small the contribution might've been.

Let's take the example of his standalone single Back To You, which was released through 78 Productions, as well as Epic Records, with whom Louis had signed within the same month, July 2017, and he was also still signed with Syco. The next 2017 single, Just Like You, he surprise-dropped and released it only through Syco, even though he was still signed with Epic Records during that time. The last 2017-single, Miss You, was again released through Epic Records, 78 Productions, and Syco. In 2018 he didn't release any music and in 2019 and all the way until his album, Walls, came out, all releases (incl. the album) were then through Arista Records, 78 Productions, and Syco. (it also needs to be said that Simon Cowbell was already 75% out of the Syco company since 2015 and most of the company shares were held by Sony) (I wrote about his struggle to find a supportive record label and finally put out a first album in this post.)

I know there's contracts and aspects of the releases that get dealt and financed by different companies, sometimes also depending on/split by the costs of physical & digital distribution and promo in different countries. Especially nowadays that's pretty common. Especially small(er) Artists are expected to chip in with their personal money to get 'the whole package'. (a yucky deal) Now I do not have the numbers, meta, and insights to judge whether he could've been called a 'smaller artist' 2017 - 2019, but the fact is that he DID use quite a lot of his own money for the releases back then. Let me give one tiny example: 78 Productions made only £78k of income before taxes in the financial year Up to Jan 2018 (meaning: Jan 2017 - Jan 2018). What matters more, though, are the funds of the company and those were at £988k. This could be, for example, if money from somewhere else (a personal account, or one of H & his shared accounts) had been transferred into the company. At the end of that financial year, the company had £323k left in funds. The company earned a lot of it back in the next year. Income before taxes for the financial year of Up to Jan 2019 was £570k (he did do X-Factor in 2018!) and company funds at the end of that financial year were at £1.2 million. The pandemic ripped quite a hole into that again, but that was to be expected.. To this day, 78 Productions Ltd. is Louis' most profitable company out of all. A few of his companies are still young, though and almost every company starts with 1-2 years of losses. Although fun fact: to this day, 1D Media Ltd., still holds almost as many funds at the end of each financial year as 78 Productions Ltd. does. ✨The power of 1D, man!✨ (but that's also because the funds there are never fully drained)

-

Next topic, his plan/idea to start his own music management company, as he tweeted on March 6, 2021 -

..as far as I know, nothing has come of this, yet. And Louis did clarify that at that stage it was only still "an idea". I also find it interesting that he highlighted that he did not want to start a label.

I had been eyeing this article (2022 interview with Matt Vines from Louis' management, Seven 7) for months, though, because of a few things he said:

"Within One Direction, his role was not only chief songwriter, he was also the decision-maker. That’s something he wants to employ going forward, whether it be managing artists or from a label perspective and those are all things we’re looking at doing."

"BMG was an exciting choice, because Louis didn’t want to do the conventional major label deal set-up that he was used to before, coming out of Syco."

"[...] the idea of a ‘manager-artist relationship’ is a bit outdated and, actually, we’re simply partners in running a business. It’s a very transparent partnership and, when you put that mindset on things, it gives you the opportunity to do things differently. Louis has done everything and he knows how the business works; he’s incredibly intelligent and street smart."

..and it gave me some food for thought. But keep in mind, this is only hypothetical and there's no evidence at all for this!

So my thought had been whether Louis potentially might have unofficially joined hands a little bit with Matt Vines there, business-wise in an advisory way. Louis' name definitely appears nowhere in the public records of Matt's 2 management companies, Seven 7 Artist Management Ltd. and Seven 7 Rights Management Ltd. That means he's not a shareholder, not a controller, and not a director of the company. He could still very well have certain contracts or agreements with Matt regarding management advisory, etc. Louis is super knowledgable in the music business and has an incredible wealth of personal knowledge. And I'm sure he firsthand knows how he would've wanted to be treated as an artist... opposed to the treatment his husband, his friends, and him actually got. Judging just from public records, I also can't rule out the possibility that he could be financially invested in Matt's company outside of obviously making the company money as a client.

According to the filed Accounts (Financial Statements) of Seven 7 Artist Management Ltd., that company is growing steadily & well since signing Lou in July 2018, which will subsequently show in the numbers of the following financial year, so 2019: 2017 - £29k - 4 employees 2018 - £57k - 5 employees 2019 - £231k - 5 employees 2020 - £199k - 5 employees (pandemic/world tour cancellation) 2021 - £272k - 4 employees (pandemic/livestream in Dec 2020) 2022 - £383k - 5 employees 2023 - £449k - 5 employees 2024 - £663k - 7 employees (as previously mentioned, these numbers are the funds of the company at the end of each financial year)

Seven 7 Rights Management Ltd., though has never and is still not doing well. It never had more than losses in at the end of the financial year, up to a maximum of only £13k in funds.

In conclusion, this is just a theory/thought I had, of course. I've never come across any paperwork or have seen articles about it online.

But yeah, nothing else has come after those March 6, 2021 tweets, yet, as far as I can remember. Since it's been 4 years, maybe Louis has changed his mind or just postponed that idea. Never say never. :) (If I've overlooked something, please feel free to drop a message or comment and I'll add it in here.)

-

dear anon, I hope this answered a few of your questions or at least gave you a better understanding of Louis' extensive business ventures.

For a really deep dive, I'll have to kindly ask you to wait until I've finished and posted my masterpost - hopefully at the end of this month 🥹💖 It'll be split into 3 separate posts for 1D, Louis, and Harry.

Thank you for your kind message 💖 x

-

additional resources: Louis' career tag by @tobethemselves Louis' career Part 1 + 2 • Part 3 + 4 • Business Talk • Louis career tags by @fookinhellcurlyyy Louis' career • Record Contracts • Louis Was Always The Boss tags by @twopoppies Louis' career • Publishing Deal • Record Deal • Louis' Team • Record Labels • Music Business tags by @daisiesonafield-blog Louis The Boss • Contracts & Business tags by @skepticalarrie my own tags: Harry companies • Louis companies • 1D companies

[skepticalarrie]

Re your ownership of 1D and Zayn ... I've looked at the public documents for 1D Media PL which are all at https://find-and-update.company-information.service.gov.uk/company/07471150/filing-history and there's a HUGE amount of document activity in early 2016, including a large number of shares returned to the company ... but given I'm not a lawyer I can't really make thst much sense of it ... any 1D lawyer fans able to comment?

I think it’s what I mentioned on the previous post, anon. After the band went on hiatus, OT4 started being represented by Engel and McEvoy. This happened to many 1D-related companies, while others were dissolved. I believe only PPM Music Ltd (publishing) remained under the directorship of the boys until recently, when Engel and McEvoy took over as well. I remember this being discussed a while ago (there were so many awesome lawyer larries around! But all the blogs/posts seem to be gone now), so someone please feel free to add to this post about why this shift happened. I assume it’s just to make business easier, but I have no idea!

[madat-55]

Same nonnie- Hey you said on my last ask "...1D MEdia still owns the he EU trademark for the name “Zayn Malik.” . Do you know what this mean, my Nonnie? It means that Zayn could not drop an album, or perform, or drop merchandise in EU as Zayn Malik, without the consent (and profit) of 1D MEdia." but his online shop is zaynmalikstore(.)com or the website domain name doesn't include

Hello my Anon and welcome back!

First of all, 1D Media has the trademark for the name “Zayn Malik” ONLY in EU. Which means that in EU he cannot perform, drop albums, or sell merchandise marked as “zayn malik” without prior consent of the company. Imagine having to do these things under two different names: one for E.U. and one for the rest of the world!

The name of his online shop is his domain and if it was purchased and registered in the States, then there was no problem. But even if it was purchased and registered in UK , i don’t think it would have been a serious problem since it’s only a domain and nothing more; no one is making any money from the domain’s name.

P.S. If you check, the t-shirts’ logo is “zayn” and not zayn malik