One Direction have earned in excess of £25 million in the last three years and their fortune is reportedly set to double in the next twelve months but they have been warned to keep a close watch on their money by some stars who know what it’s like to hit the big time unexpectedly.
Status Quo – who have had over 60 chart hits in the UK, which is more than any other rock group and previously received a Brit Award for Outstanding Contribution to Music – have given some words of wisdom to the X Factor stars and told them to be vigilant and well advised, or they could find themselves being taken advantage of by those closest to them.
Lead singer Rick Parfitt told The Telegraph that it’s important to keep a watch on finances when you’re at the height of your career, as 1D are and he explained:
“It’s a good point to keep your eyes on the money with bands like One Direction, as when you’re starting out and you’re a guitar player or a singer, what do you know about money?”
The 64-year-old rocker says that Harry Styles, Zayn Malik, Louis Tomlinson, Niall Horan and Liam Payne, need to watch over their financial team, their accountants, their managers and anyone supposedly looking after their business interests as he was cheated out of money when he was starting out in the industry back in the 1960s.
“The questions they need to ask are ‘have you checked your lawyer? Have you checked your accountant? Do you know your accountant?’ I wish we had because if you don’t, you can get taken advantage of.”
Guitarist Francis Rossi advised the band to get themselves informed, as when he started out he didn’t understand the business side to the industry, which in turn affected how he handled his earnings. He said:
“I think when you first come into this business as well, like we did, the money starts rolling in and you’ve gone from one side of life, to another and you’re too busy doing what you’re doing.”
Parfitt admitted that Staus Quo weren’t the only artists to lose out to greedy accountants either. It’s more common than people realise and he explained:
“We didn’t get our due but its tricky, I think. Sting took a lot of stick for losing 6 or 7 million quid to an accountant but it’s difficult.”
One Direction are looked after by Grant Thornton wealth management team, who also advise many of the National Lottery winners and a source told The Mirror that they are receiving a lot of advice on how best to invest their fortunes.
A music industry source said:
‘Their success is quite staggering – so are the profits coming with it. The lads had an incredible 2012 and this year looks even bigger.
‘Although they’re all mature for their age, they are still five young boys at heart, and have all made mistakes – it’s part of growing up.
‘They’ve now been assigned a small team at one of the country’s top money service providers who will be advising the boys on matters of tax, capital and investment.
‘One Direction has become one of Sony’s biggest draws and the label wants to make sure the guys are looked after.’
But the accountants could face a bit of an uphill struggle with the extravagant boys as Louis Tomlinson recently spent £10,000 on special edition superhero figures as well as buying his own football team.
Liam splashed out a whopping £13,000 on a Hublot watch and another £3,000 on a designer Breitling and bought his ex girlfriend Danielle Peazer a £50,000 Audi TT for her birthday.
Zayn Malik spent hundreds of thousands of pounds on a family home for his mum and sisters earlier this year, but we think that’s a lovely gesture!
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