In September 1998, St. Louis entrepreneur, Phil "Pharlo" Patton and St. Louis based recording artist and studio musician Rashed Jamal Nephelim formed a Independent record label geared towards the artist. Born out of a mutual love of music, and a commitment to the artist came PHARLO Records,INC. Based in St. Louis, PHARLO Records first release is by the label's recording artist "SMOKEE". The artist's first release is scheduled for a first quarter 1999 release.
"We wanted to start a record company that was equally fair for the business and the artist," says Phil Patton. Patton learned from the media and various music publications that labels reap substantial profit from the artist's product, often while the artist is still far in dept to the label for recordings and marketing expenses.
"Nephelim and I are setting up an accounting structure at PHARLO Records which will be more equitable to the artist." All gross sales from a particular project will first go towards the expenses the company incurred for the artist, from then on there will be an equitable division of the net profit between the label and the artist. "So essentially both the label and the artist are risk-takers as well as potential profiteers," says Patton.