Chance the Rapper Wins Legal Battle Against Former Manager Pat the Manager
A Cook County jury on Friday night delivered a verdict in the contentious legal battle between Chance the Rapper and his former manager, Pat Corcoran, rejecting claims that Corcoran was owed $3.8 million in unpaid commissions. The decision, reached after a two-and-a-half week trial, marks a significant win for the Grammy-winning artist, but leaves lingering questions about the value of oral agreements in the music industry.
Corcoran, known professionally as “Pat the Manager,” filed the lawsuit in 2020, alleging a breach of contract stemming from a 15% net profits agreement established in 2013. A central point of contention was the existence of a “sunset clause” – a provision that would have entitled Corcoran to three years of earnings even after his termination in April 2020. Corcoran maintained the clause was part of their initial oral agreement, while Chance the Rapper, whose legal name is Chancelor Bennett, denied its existence. The jury ultimately sided with Bennett, finding Corcoran had failed to prove the clause was agreed upon.
The trial laid bare the complexities of their professional relationship, which began in the early stages of Chance the Rapper’s career. Robert D. Sweeney, one of Corcoran’s attorneys, argued that Corcoran was instrumental in building Chance’s success, pointing to the breakout success of the 2016 album Coloring Book, which spent 125 weeks on the Billboard 200 chart and earned the artist three Grammy Awards. Sweeney contrasted this with the comparatively limited chart performance of Chance’s 2025 album, Star Line, which spent only one week on the Billboard 200, suggesting a decline linked to Corcoran’s departure. Billboard reported on Sweeney’s closing arguments.
However, Precious S. Jacobs-Perry, representing Chance the Rapper, countered that Corcoran was attempting to profit from a relationship built on trust and lacked a formal, written contract to support his claims. Jacobs-Perry presented written communications dating back to 2014, which outlined the 15% commission agreement but made no mention of a post-termination sunset clause. She argued that Corcoran first introduced the concept of the sunset clause in his November 2020 lawsuit.
The jury’s decision wasn’t a complete victory for Chance the Rapper. While rejecting Corcoran’s claim for $3.8 million, jurors awarded Corcoran $35 in damages as part of Chance’s countersuit, which alleged breach of fiduciary duty and exploitation of career opportunities. They also recommended that Corcoran relinquish control of the internet domain name ChanceRaps.com, which he had been using to sell merchandise. The Chicago Sun-Times detailed the jury’s split decision.
The case highlights the risks inherent in relying on oral agreements within the music industry. Jay Scharkey, an attorney for Corcoran, stated, “We respect the jury’s decision, but the message to music managers is clear: Acquire it in writing. The jury award of $35 speaks to how seriously the jury viewed Chance’s case.” This sentiment underscores the importance of formalized contracts to protect the interests of both artists and their representatives.
The legal battle between Chance the Rapper and Pat Corcoran, which began in 2020, has been closely watched within the music business. Music Business Worldwide has followed the case since its inception. While the jury’s verdict brings a formal end to the dispute, the case serves as a cautionary tale about the potential for conflict when business relationships sour and the critical need for clear, documented agreements.
A representative for Chance the Rapper did not immediately respond to requests for comment following the verdict, leaving unanswered questions about the artist’s future legal strategy and his approach to managing professional relationships.