A recent investigative report from Business Insider titled How Rich Musicians Billed American Taxpayers for Luxury Hotels, Shopping Sprees, and Million-Dollar Bonuses has brought to light the questionable use of pandemic relief funds by several well-known musical acts, including Alice in Chains and Shinedown. This report scrutinizes how these artists handled substantial financial assistance meant to support them during the pandemic, raising concerns about potential misuse of funds originally intended to aid struggling individuals in the entertainment industry.

The report highlights alarming instances of misappropriation, revealing that some artists redirected pandemic relief funds for personal luxuries rather than essential business needs. This indicates a troubling trend where financial aid designed to sustain livelihoods was instead funneled into extravagant personal expenses.

For example, it was uncovered that rapper Lil’ Wayne allocated $1.3 million from his $8.9 million grant towards private jet travel, in addition to spending another $460,000 on high-end fashion items. Similarly, pop star Chris Brown reportedly used $80,000 of his relief funds to celebrate a birthday party while claiming $5.1 million for personal use from his company’s grant of $10 million. Such revelations raise significant ethical questions regarding the use of taxpayer money.

In the cases of Shinedown and Alice in Chains, the report did not identify excessive personal spending but indicated that members of both bands received substantial payouts from the grants, raising concerns about the distribution of relief funds within these musical groups.

Understanding the Source of the Pandemic Relief Funds

The financial support that musicians received originated from the Shuttered Venue Operators Grant, a relief program established during the Trump administration. This initiative aimed to assist independent venues and arts groups that faced significant financial difficulties amidst the pandemic’s disruptions, allowing them to stay afloat during an unprecedented time in the entertainment industry.

With live performances halted, many bands found themselves without their primary source of income. However, those managing the finances of even prominent music acts discovered that they could qualify for grant money through specialized loan-out companies designed for such situations. This led to a surge in applications from artists who previously may not have sought federal assistance.

To qualify for the grant, applicants had to demonstrate a legitimate need based on certain eligibility criteria. According to the report, grantees could receive up to $10 million to cover “ordinary or necessary” business expenses. They were required to provide a good-faith statement to the Small Business Administration (SBA), confirming that the funds were essential for their loan-out company’s “ongoing operations” and that revenue had decreased by at least 25% during a specific quarter when compared to the same period in 2019.

The SBA has asserted that it adhered to legal guidelines when distributing these funds, explaining that the law mandated an analysis of a band’s revenue rather than their assets. Consequently, as long as their loan-out entity could demonstrate a revenue decline, they were eligible for the grants.

Analyzing Alice in Chains’ Use of Grant Funds

According to the Business Insider report, Jerry Cantrell, the singer-guitarist of Alice in Chains, reportedly received $1.4 million categorized as an “SVOG distribution” based on records from a transaction dated March 23, 2022. Similarly, fellow founding member and drummer Sean Kinney received an identical amount, while bassist Mike Inez, who joined the band later, received $682,000.

This cumulative amount of $3.4 million accounts for a significant portion of the total $4.1 million that the band allegedly received from the grant. The band’s management, AIC Entertainment, which is operated by the three core members, had to justify the necessity of these funds to qualify for the grant.

However, it’s worth noting that just a month prior to receiving their grant payments, the group had reported a staggering $48 million income from selling the rights to their music catalog. Additionally, they reportedly garnered hundreds of thousands more from merchandise sales and other revenue streams in 2022, raising questions about the real necessity of the grant funds.

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The report acknowledges that the band did allocate some of the grant money to pay their staff and that hundreds of thousands were directed towards sound equipment rentals, videographers, and management services. However, a tragic aspect of the report mentions that their guitar technician and photographer, Scott Dachroeden, was diagnosed with cancer in late 2022. Unfortunately, the band did not utilize any of the grant funds for health benefits, leaving Dachroeden without health insurance. The band later organized a GoFundMe to assist with his medical expenses and connected him with a charity for further support, but sadly, Dachroeden passed away shortly after his diagnosis.

Loudwire has reached out to representatives for Alice in Chains for comments regarding these allegations. As of the time of this report, no response has been received.

Dissecting Shinedown’s Allocation of Grant Money

Similar to Alice in Chains, the Business Insider report indicates that three out of four members of Shinedown received the lion’s share of the grant funds. Out of the total $8.3 million grant, it is reported that at least $2.5 million was distributed among these three members, while each of the four members additionally received $100,000 each from the $1.2 million designated for payroll expenses.

The breakdown reveals that only 15 touring production staff members collectively received $650,000 from the grant funds, which is less than any individual member of the band. This equates to approximately $43,000 per worker, highlighting a significant disparity in the distribution of funds intended to support those in the entertainment industry.

Loudwire reached out to representatives for Shinedown to offer them a chance to comment on these findings. As of the time this article was published, no response has been received.

The comprehensive Business Insider report also names other prominent acts, including Steve Aoki, Marshmello, and Rae Sremmurd, among those scrutinized. You can read the full report here.