According to The AP, past second prize winners of the Fox singing competition show have received a guaranteed advance of at least $175,000 (£111,000), as well as a full album deal.
However show bosses have produced a new contract in which future runners-up, including Sanchez, will receive between $30,000 (£19,000) to $60,000 (£38,000) in advances for singles or EP records.
The deal also stipulates that winner Phillip Phillips will receive a $300,000 (£190,000) advance upon completion of his first studio album.
He stands to collect up to $800,000 (£510,000) if he is able to qualify for a six-album deal with production company 19 Recordings, who handle all Idol contestants.
Reps for 19 Recordings Inc. and American Idol have declined to comment on the new contracts.