Whitney Will Still Be Penniless Even With A Comeback Record

Whitney Houston never did get the full $100 million that she negotiated with Arista Records six years ago.

Houston, I'm told, got about $20 million up front on a contract Arista Records gave her thanks to then-president L.A. Reid. But when Reid left for Island/Def Jam, and Houston's consequent album failed to sell, Sony BMG took over the contract and cancelled it.

"Whitney never got any more money," a source told me recently.

If Houston does make a comeback album now with Clive Davis — and Davis may well pull this off — Houston will only be paid for the recording and expenses. Otherwise, I'm told the coffers are empty for her.

"She still owes us for the last album," a source familiar with Houston's arrangement tells me.

This would account for Houston letting her Atlanta home be sold in foreclosure late last year and for letting personal items be sold at an auction. She's held on to her New Jersey estate, but not with Sony BMG's help.

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