You guys get all caught up over a deal, a deal don't really mean shit. Lets say that Sony gave em 10 mil up front, how many ways does it have to be split? Plus the agent, the booking agent, the manager. Then of course the artists. Also half of it goes to Uncle Sam. They then have to repay anything that Sony does for said label, the truth is, regardless of talent, they have a high probability that they will really just be acquiring debt with a deal. The horror stories run deep bro, Major outlets don't play anything for free, it doesn't matter who you are. The reported going rate for having a video in semi rotation through the MTV, BET parent company (viacom) along with the interview packages and exposure they give runs in the neighborhood of 1-2 million dollars when its all said and done. This shit is not as easy as being good and having talent. They may have a run but being indy successful as a company takes a while. Lets have this conversation in 5 years.
I guess I should have been clearer, they have a distribution deal with RED Music which is a subsidiary of Sony. This kind of deal is standard practice for most regular indie labels, not these "labels" most rappers get, like Game's Black Wallstreet which never drop shit and aren't much more than a logo/pendant on a chain. So it's not like they signed a slave contract. No, this is a label deal that a majority of indie labels get and while they don't usually make a huge amount of money like the Def Jams of the world, they seem to be able to pay their bills just fine. RED Music has 60 labels under them, I doubt if they were robbing and raping their clients that they would have so many under them.
Check their site for more info:
http://www.redmusic.com/?page_id=275
Yes, everyone involved in it gets a cut, that is how a business works, but they have full creative control and 100% ownership of their masters. Although just because 1 person releases an album, that doesn't mean that revenue is getting split between the 9 members evenly. They're getting paid for what they bring to the table not just sitting around getting paychecks for no reason, come on now. Plus, everyone knows from the biggest mainstream stars to the most obscure indie artists, the real money is in performing shows. Here is their current tour schedule right now. Big pics for some so I'll link.
East Coast Tour
Europe Tour
Summer Festival Tour
April 15
COACHELLA FESTIVAL -CA
MAY 29
PRIMAVERA FESTIVAL - SPAIN
JUNE 1
SYDNEY OPERA HOUSE- AUSTRALIA
JUNE 3
THE PRINCE OF WALES - AUSTRALIA
JUNE 4
THE ZOO - BRISBANE
JULY 17
PITCHFORK FESTIVAL - CHICAGO
AUGUST 13-14
SUMMER SONIC FESTIVAL- TOKYO, JAPAN
AUGUST 27
READING FESTIVAL - UK
AUGUST 28
LEEDS FESTIVAL - UK
If they keep even half of this steam they got right now, I'm sure they'll be breaking even at the very least and not broke. Also a big part of what will help them is their fans aren't the typical hip hop fans, they are people that listen to rock and indie music, people who will more than likely buy albums and merch.
TL;DR - The likelihood for success is bigger than them becoming failures, you're just looking at it from a pessimistic angle.