TMZ claims to have a copy of the contract for American Idol finalists and the terms frankly aren’t that great. Contestants only make money when they record albums and for their first album it doesn’t sound based on how much the albums sell. Subsequent albums do pay for more sales, but there’s a cap on the amount. This could be beneficial for musicians who aren’t huge sellers, but it might work out entirely in favor of the record company if the albums are successful. It’s $350,000 for the winner’s first album and up to $550,000 for their second, if it sells well. From what TMZ reports, Idol doesn’t pay contestants for how long they’re in the contest (like Dancing with The Stars) and they’re even cheap with small charges. There are also provisions to ensure that contestants don’t get involved personally or professionally with anyone on the show:

According to the legal doc — a copy of which was filed in court because a contestant was a minor — the contestants promise the following: “Neither I nor any members of my family or my friends will enter into any personal, social, business, and or financial relationships with any of the judges, host(s), guest stars …” The prohibition runs for the duration of the show and 6 months thereafter.

But the way we see it … there’s no way the contract can bind family or friends. Nonetheless, it’s a good threat, because according to the doc, a contestant will be disqualified for violating the rule and forfeit any prize money.

And in the money department … here’s the way it breaks down.

The winner gets $175,000 when he/she starts recording … and another $175,000 when that person “delivers” the first album. If the winner gets a second album, he/she gets anywhere between $275,000 and $550,000 depending on the success of the album. As for a third album — anywhere between $325,000 and 650,000. As for a forth — anywhere between $375,000 – $750,000. As for a fifth — $450,000 – $900,000. And a six album gets the winner between $500,000 and a cool $1 mil.

The second place finisher gets $150,000 when he/she starts recording their first album … and another $150,000 upon delivery. The second album gets the runner-up between $225,000 and $450,000 and so on.

As for 3rd through 12th place — if the label signs them — they each get $100,000 when he/she begins recording album #1 and another $100,000 upon delivery … though most of them end up playing hot air balloon festivals.

And get this … according to the contract, “A.I.” isn’t required to pay incidental expenses during the show. Contestants even have to pay for their own transportation when they’re not traveling to and from the show.

[From TMZ]

It doesn’t sound like Idol pays their talent enough for how much the show pulls in. It’s the most popular show on television and some of the judges have multi-million dollar contracts. These singers even film commercials for companies like Ford. Still, it’s priceless exposure for these artists, who would otherwise never get an opportunity to sing for millions of people.

Spoilers for last night’s episode
Idol is down to the final three, with “Big Mike” Lynche voted off this week to leave Casey James, Crystal Bowersox and Lee DeWyze. James performed a rendition of “Mrs. Robinson” that had Simon Cowell joking about James having a crush on Kara DioGuardi. James is ok with it, though, and said “It doesn’t bother me… I took my shirt off to get to the Hollywood round, so I can’t really complain if they’re going to bring something like that up.” A lot of people say that the race is now between DeWyze and Bowersox, but we’ll see.

Photo credit: Nikki Nelsen/WENN.com.