Reportedly spoils instrument (4)
I believe the answer is:
lute
'instrument' is the definition.
(I know that Lute is a instrument)
'reportedly spoils' is the wordplay.
'reportedly' indicates a 'sounds like' (homophone) clue.
'spoils' becomes 'loot' (both can mean a reward or proceeds).
'loot' sounds like 'LUTE'.
(Other definitions for lute that I've seen before include "Protective packing" , "Subject to drugs" , "Elizabethan stringed instrument" , "Play instrument" , "Plucked instrument; a sealant" .)