Royalty statements are the evidence behind a catalog valuation, so they must show where income came from and how it connects to the rights you control. Download original files from every payer, reconcile them into one summary and explain gaps before sharing detailed data with a buyer or funder.
Start with a complete payer map
List every organization that may pay you, even if a recent period shows no payment. Include distributors, labels, publishers, administrators, performing rights organizations, mechanical collection bodies, neighbouring rights societies and direct licensees. A payer map helps reveal missing portals, old accounts and income routed through managers or companies.
Note the account holder, territory, payment currency, statement frequency and rights covered. Keep credentials outside the data room. Buyers need documents, not access to your live accounts.
Exactly what to download
From distributors, download recording-level CSV exports for streams, downloads, user-generated content and other uses, plus settlement summaries and invoices. Include ISRC, track, artist, platform, territory, usage period, reporting period, gross receipts, deductions and net payable where available.
From labels, collect artist royalty statements, recoupment statements, reserve movements, cost ledgers and any supporting schedules. If the contract covers several releases, keep the album or project identifiers intact so cross-collateralization can be checked.
From publishers and administrators, download work-level statements showing title, writers, ownership share, society, income type, territory, source period, deductions and net amount. Include advance and recoupment pages where relevant.
From PROs such as SGAE, collect performance distributions, work registrations, repertoire listings and any unmatched or pending-claim reports. For mechanical rights, gather statements from the relevant society, publisher or administrator.
From neighbouring rights societies, collect performer and label-side statements where applicable. These can come from different organizations and may not follow the same reporting calendar. Keep each source separate before consolidating it.
Also gather sync licences and invoices, direct licences, YouTube or Content ID reports, audit settlements and one-off adjustments. A bank statement alone does not identify the rights or period behind a payment.
Build a clean file structure
Use one folder per payer and one subfolder per year. Give every file a consistent name containing the payer, period and file type. Preserve original CSV and PDF files, then create working copies for analysis.
Never overwrite a source file. If you correct a title or code in the summary, keep a note explaining the change. A buyer should be able to trace every summary number back to an original statement.
Create the master summary
Your summary should let a reviewer move from catalog level to song level without mixing unlike income. Use separate fields for the period earned and the date paid, because royalty systems often report late.
| Field | What to enter | Why it matters |
|---|---|---|
| Song or recording | Standard title plus aliases | Groups inconsistent payer labels |
| Rights type | Master, performance, mechanical, neighbouring or sync | Prevents double counting |
| Source | Distributor, label, publisher, society or licensee | Links to the original payer |
| Territory | Reported country or region | Shows geographic concentration |
| Usage period | When the activity occurred | Supports trend analysis |
| Payment period | When it was reported or paid | Explains timing differences |
| Gross and deductions | Values exactly as reported | Shows fees and recoupment |
| Net amount | Amount attributable to your interest | Basis for reconciliation |
| Identifier | ISRC, ISWC or payer code | Connects data across systems |
| Notes | Adjustment, dispute or one-off item | Helps normalize unusual income |
Create views by song, source, territory and year. Do not merge master and publishing income merely because the title is the same. They may have different owners and transaction options.
Want to see which gaps may slow a transaction? Complete the catalog readiness check or book a confidential call before opening a data room.
Reconcile totals before analysis
For each statement, compare the summary total with the document total and record any difference. Then compare statements with invoices and cash received while recognizing that withholding, currency conversion or grouped payments may create legitimate differences.
A reconciliation log should identify the file, reported total, summary total, difference and explanation. If a statement was replaced or corrected, retain both versions and mark the final one clearly.
Common gaps and how to handle them
Missing quarters are common after distributor moves, publisher changes or account migrations. Ask the payer for archived exports rather than estimating the missing income. If files cannot be recovered, disclose the gap and explain what alternative evidence exists.
Title variations and duplicate identifiers can split one recording across rows. Build a controlled title map, but do not silently combine versions that may have different ownership. Remixes, live versions and samples can require separate treatment.
Statements may report gross activity while a label statement reports only the contractual artist share. Do not add both as though they are separate income. Review the payment chain and contract.
Foreign currency also causes confusion. Keep the original amount and currency, and document any conversion used for the summary. Do not rewrite historical figures using an unexplained current rate.
Connect income to ownership documents
Statements prove payment, not ownership. Pair them with label, distribution, publishing and administration agreements, split sheets, producer agreements, letters of direction, registrations and succession documents where relevant.
Create a rights schedule showing each song or recording, your interest, counterparties, contract term, territory, restrictions and identifiers. Flag disputed splits, samples, liens, unrecouped balances and notices that could affect transferability.
Read what buyers look for and the music catalog glossary if diligence terms are unfamiliar. Independent counsel should confirm chain of title and contractual rights.
Prepare different views for different structures
A full or partial sale requires evidence for the rights being transferred. A distribution licence advance focuses on eligible master income and existing distribution obligations. A royalty advance focuses on the payment stream assigned for recoupment. An unrecouped buyout requires label statements, contract terms and a reliable balance.
Build the summary once, then filter it for the proposed structure. Do not send unrelated personal or third-party information merely because it appears in the same account.
Share information in stages
Begin with an anonymised summary that shows rights type, income sources and trend without identifying sensitive counterparties. After an NDA, qualified parties can receive a more detailed summary. Line-level statements and contracts usually belong in a controlled data room later in the process.
Our guide to confidentiality and NDAs explains staged disclosure. Redact bank details, home addresses, tax identifiers and unrelated third-party personal data unless counsel confirms they are necessary.
Final quality check
Confirm that every year and quarter expected from each payer is present, all totals reconcile, identifiers are consistent and one-off items are labelled. Check that the rights schedule matches the proposed transaction and that current agreements have not been omitted.
Keep a questions log. Fast, consistent answers build confidence more effectively than an attractive spreadsheet that cannot be traced to source documents.
Frequently asked questions
How many years of statements should I prepare?
Provide enough history to show the catalog's normal performance and explain changes. The appropriate period depends on release history, contracts and the transaction, so ask the reviewing party what it requires.
Are PDFs enough?
PDFs preserve official presentation, but line-level CSV exports are usually easier to analyze. Keep both when available and ensure their totals reconcile.
Should I include statements with no payment?
Yes when they complete the reporting history or show recoupment, reserves or activity. A zero payment can still explain the contract account.
Can I combine master and publishing income?
You can present a high-level total, but keep the underlying streams separate. Different ownership, contracts and buyers may apply to each.
What should I remove before sharing?
Remove unrelated personal data, login credentials, bank details and third-party information that is not needed. Use an NDA, staged disclosure and independent legal guidance.
Complete the catalog readiness check, then use the selling guide or book a confidential call to prepare a traceable diligence package.