Financial Struggles of Top Artists: Aiko, Mr. Children, Tortoise Matsumoto, and the Dark Side of the Music Industry

Top artists are increasingly getting caught up in financial troubles.

On June 18, singer Aiko appeared as a witness at a Tokyo District Court trial. 

Former director of her personal agency, Atsushi Chiba, has been charged with a breach of the Companies Act (special breach of trust) for purchasing tour merchandise at inflated prices from a company he knew and receiving kickbacks from the difference. Chiba, known as Aiko’s mentor, was publicly denounced by Aiko in court, where she revealed, 

“I was brainwashed by Chiba.”

According to a national newspaper reporter who attended the trial, 

“Aiko lent a total of 460 million yen to the agency after Chiba claimed the business was struggling. Despite having doubts, she handed over the money because she was not given details about the agency’s finances.”

Additionally, the national rock band Mr. Children have also been reported in Shukan Bunshun with allegations of 400 million yen in under-the-table money involving their management company. 

The article states that Mr. Children’s agency, Engine, and its affiliate, Clutch, inflated production costs for the band’s concerts, creating approximately 400 million yen in illicit funds.

The magazine further highlighted that tickets for the 2018 arena tour “Gravity and Breathing” were increased by 540 yen compared to the previous year’s tour, suggesting that these increases were linked to the creation of illicit funds.

In response to the series of reports, Engine, Mr. Children’s management company, issued a statement on their official website.

“We deny any allegations of misconduct related to concert revenue as reported in this article.”

Regarding the ticket price increase, they stated:

“Considering social conditions such as rising prices and labor costs, we have carefully discussed and decided on the ticket prices with the utmost consideration to avoid placing a significant burden on fans. We categorically deny any facts that indicate these increases were for unjust enrichment.”

The statement ends with:

“Engine Co., Ltd. Mr. Children”

The mention of joint names indicates that this official statement was issued with Mr. Children’s consent. According to industry sources, 

“The fact that it’s a joint statement means that Mr. Children approved it. The members, including vocalist Kazutoshi Sakurai, were reportedly unaware of the company’s alleged issues.”

Similarly, Tortoise Matsumoto of the popular band The Ulfuls has also faced financial trouble reports in Shukan Bunshun.

This issue is not related to Matsumoto’s main career but involves his role as CEO of the apparel company Asakura Co., Ltd., which is at the center of the scandal. The company allegedly fraudulently applied for COVID-19 employment adjustment subsidies. The company was founded by Matsumoto’s father-in-law, and Matsumoto had taken on the executive role as a favor.

“Aesthetically, Matsumoto is the CEO, but he was merely lending his name and had no involvement in the management. He learned of the fraudulent claims only from Shukan Bunshun and immediately resigned,” said a desk editor from a sports newspaper covering entertainment.

Matsumoto’s management company apologized, stating:

“Tortoise Matsumoto takes this matter seriously, feels a deep sense of responsibility, and will work to restore trust.”

Why do such financial troubles occur among artists like Aiko, Mr. Children, and Tortoise Matsumoto?

A veteran record industry insider explains,

“Artists are often focused on their music and live performances rather than meticulously checking the company’s finances. The use of personal agencies also contributed to the problem, as it often means that only a specific individual handles the financial management, making it harder for misconduct to be exposed. If this were a major production company, the outcome might have been different.”

Just as Aiko was able to arrange over 400 million yen, significant amounts of money are involved with hit artists. Witnessing this can lead people to engage in wrongdoing beyond mere trust.

“Kickback schemes or stories of embezzling from the agency are common but not always reported. The more famous someone becomes, the more dubious characters tend to approach them. This incident might just be the tip of the iceberg,” said the record industry insider.

It seems to be part of the dark side of the entertainment industry.