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‘Borrowing’ £2.27m… the perils of music management September 30, 2017

Posted by WorldbyStorm in Uncategorized.
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From the Guardian…

Rock group Deep Purple’s former accountant has been banned as a company director for misappropriating at least £2m from two entities controlling their catalogue of hits.

And;

The newspaper said the high court granted a £4m freezing order against the assets of Rao and his wife, Anvita. It said Rao admitted “borrowing” or “lending” at least £2.27m of the companies’ money, and that the Deep Purple companies had recovered about £477,000 so far.

This is such a typical story that it is almost beyond comment. But it’s hardly surprising, is it? A lot of groups start out with little or no financial acumen. They are often very young and their focus is on the musical rather than business side. Small wonder that they are prey for those who would

It’s a bit different for groups further down the road. It’s almost surprising that Deep Purple would have been caught this way given that they are in their 60s and 70s. And yet, again where is the surprise? Hugely, often deliberately, complex financial negotiations int elation to licensing, merchandise, sales and so forth are part and parcel of such businesses. It requires some dedication to keep on top of that.

That said the other side is those who do misappropriate, or ‘borrow’ in the quaint explanation above. Surely they’re well paid enough as it is, or is the simple truth that for some there’s never enough money?

Comments»

1. sonofstan - September 30, 2017

” It’s almost surprising that Deep Purple would have been caught this way given that they are in their 60s and 70s. ”

Maybe not. In the era in which they came of age, it would have been relatively rare for musicians to have the education or the confidence to challenge the supposed ‘professionals’ taking care of them – and for most of their careers, they probably had little incentive to look too closely as the cash would have been pouring in. I’d be more surprised at younger artists being caught this way. That said, having just this week met our new undergrads and done my ‘how does anyone make money out of music?’ lecture, it is kind of shocking how little people, with ambitions to work in the ‘industry’ actually know. Making records used to be mysterious, but, thanks to the democratisation of the means of production, has become much less so, but the business seems to have constructed a mystique of its own.

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WorldbyStorm - September 30, 2017

And the class thing you point to is important. Gillan came from a working class background, so did the Black Sabbath crew, etc, So that makes sense what you say about attitudes to supposed professionals. A sort of deference.

V. true too re the cash pouring in.

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gendjinn - September 30, 2017

Have to plug Iain Bank’s Espedair Street here for making youse guyses exact points AND being about a 70s mega band AND for the nod to Steel Wheelers AND last but not least, being one of his top five books.

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WorldbyStorm - September 30, 2017

Great book. Haven’t read it in years. Going to now.

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