It looks as though it may be a very long spring for reality TV star and part-time Epic Records Chairman L.A. Reid. News from one of my little birdies ensconced at 550 Madison Ave. says that the numbers for Epic’s fiscal year ending March 31 won’t add up in L.A.’s favor. The label is reportedly on track to lose well north of $35 million. Whew!
“Where did it all go?”, you may ask. Well, for one thing, the Michael Jackson catalog and several other important catalogs were moved over to the Sony Legacy label, Sony Music’s separate catalog division, thus denying Epic the built-in billing that most major labels desperately need to make their numbers. Now the label is dependent upon signing and breaking new artists and I guess that it’s not that easy these days–or so I hear.
Then, of course, you have the less than parsimonious Chairman Reid. Hardwood floors, stretch limos, and private jets on the company dime tend to add up. A million here, a million there, and pretty soon you’re talking about real money. Coincidentally, Reid is the guest of honor at an annual Grammy Party this week hosted by another profligate Sony Music spender, Clive Davis.
Better yet, let’s see how septugenarian Sony Music CEO Doug Morris spins this. As both Sylvia Rhone and L.A. Reid would probably say, “That’s what friends are for”.