I don’t think it was so much the past record deals that finally made them decide to cut her. I read elsewhere she knows at least 1, if not more, higher ups at 19 Management, which runs Idol.
I think they’re more worried about that fallout than record deals. Quite a few other contestants had record deals in the past. Not quite sure why they singled out Carly.
I can think of two reasons:
As far as I understand it, Carly was the big one last year that some fans objected to mainly because there was a video on youtube. The show bills itself as turning a “nobody” into a “somebody” and it’s a bit of a scam if you have a professionally produced video on youtube.
And again is this a show turning the girl next door in nowheresville U.S.A. into a star or a vehicle to get 19 Management’s stable of talent more exposure and practice infront of a live audience? I don’t doubt 19 entertainment put her there on purpose and only pulled her when there was too much negative publicity.