UPDATE: BBC Wales reports Ian Watkins is not in line for a pay out following the sale of his former band’s management company.
Though once ‘highly profitable’, Goonies Touring Company Ltd was dissolved in December 2014 after going broke, owing thousands to creditors.
Watkins is still entitled to royalties and publishing fees for recordings, but cannot benefit from those earnings while in prison.
Jailed paedophile Ian Watkins will reportedly receive a cash lump sum of up to £150,000 while he serves a 35-year sentence for trying to rape a baby.
The former Lostprophets singer is said to be in line for the money after his fellow band members instructed accountants to close their management firm.
The firm, Goonies Touring Company Ltd, had almost £200,000 in cash and more than £500,000 in assets which will be divided among the members, the Mirror reports.
A source told the newspaper: “He is entitled to the money because it is cash earned by the band before this scandal broke.
“Many people will feel revulsion that he will have a nice little nest egg waiting for him when he’s freed but it is his cash and it will go to him.”
Watkins, who pleaded guilty to a string of “depraved” child sex offences, was sentenced at Cardiff Crown Court in December 2013, along with two female co-defendants who cannot be named for legal reasons.
After sexually touching a groupie's 11-month-old baby, Watkins then tried to have penetrative sex with the child.
He also encouraged a second fan to abuse her child during a webcam chat and secretly stashed child porn videos, some of which he had made himself.
Watkins, described by a prosecutor as a “determined and committed paedophile” will serve 29 years in jail with the final six on licence.
In December 2013 music lawyer Craig Brookes said the musician could have made up to £100,000 in royalties since he was charged in late 2012.
- Paedophile Lostprophets Singer And Girlfriend 'Discussed Having A Baby So They Could Rape And Kill Child'
- Paedophile Ian Watkins & Former Lover 'Talked Of Kidnapping, Raping & Killing Schoolchildren'
- Ian Watkins's Girlfriend 'Encouraged Him To Send Her Child Rape Images'
“This is because PRs and their equivalents in different countries allocate money on a spot-check basis.
“So you’re going to get money for plays in gyms and hairdressers and juke boxes and all that stuff.”
Lostprophets disbanded in October 2013, having formed in 1997 and releasing a chart-topping album in 2006 called Liberation Transmission.