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Trent Reznor: Manager Duped Me Trent Reznor: Manager Duped Me
May 16, 6:58 PM EST Listen to & download Nine Inch Nails' music The Associated Press NEW YORK -- Alternative-rocker Trent Reznor testified Monday against his longtime manager, saying he was stunned to learn in 2003 that despite millions of dollars in earnings by his band, Nine Inch Nails, he was left with as little as $400,000 in cash. "I felt I had an accountant I couldn't trust," he said in his federal civil lawsuit against John Malm. Reznor contends that his former friend duped him into signing a contract that allowed Malm to collect 20 percent of the singer's gross earnings rather than net earnings. A lawyer for Malm, Alan Hirth, said in an opening statement that his client worked many years for no salary and kept nothing secret from Reznor. "Of the millions upon millions upon millions that Trent Reznor and Nine Inch Nails made, the vast majority went into his (Reznor's) pocket," Hirth said. Reznor testified he trusted Malm more than anyone in his life when he agreed to let him handle his finances in the 1980s as the band signed its first record contract. "John was the business guy, and I was the guy working for nothing in the studio," Reznor told jurors. He said the pair created their own production company and managed sales of merchandise but the expenses piled up, draining large portions of the millions of dollars the band earned with its music releases and concert tours. He admitted he ignored his finances and sometimes signed documents without reading or understanding them. Reznor said he began to grow worried about finances when he was told during a meeting with Malm and a lawyer in 2002 that there was "cause for alarm." The following year, he said, he asked Malm to tell him how much money he had. He said he was sent a financial statement that revealed he had at most $3 million in total assets and as little as $400,000 in cash. Nine Inch Nails' latest single, "The Hand That Feeds," is No. 2 on Billboard's Top 20 list of modern rock tracks. | |
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laurarichardson said: Trent Reznor: Manager Duped Me
May 16, 6:58 PM EST Listen to & download Nine Inch Nails' music The Associated Press NEW YORK -- Alternative-rocker Trent Reznor testified Monday against his longtime manager, saying he was stunned to learn in 2003 that despite millions of dollars in earnings by his band, Nine Inch Nails, he was left with as little as $400,000 in cash. "I felt I had an accountant I couldn't trust," he said in his federal civil lawsuit against John Malm. Reznor contends that his former friend duped him into signing a contract that allowed Malm to collect 20 percent of the singer's gross earnings rather than net earnings. A lawyer for Malm, Alan Hirth, said in an opening statement that his client worked many years for no salary and kept nothing secret from Reznor. "Of the millions upon millions upon millions that Trent Reznor and Nine Inch Nails made, the vast majority went into his (Reznor's) pocket," Hirth said. Reznor testified he trusted Malm more than anyone in his life when he agreed to let him handle his finances in the 1980s as the band signed its first record contract. "John was the business guy, and I was the guy working for nothing in the studio," Reznor told jurors. He said the pair created their own production company and managed sales of merchandise but the expenses piled up, draining large portions of the millions of dollars the band earned with its music releases and concert tours. He admitted he ignored his finances and sometimes signed documents without reading or understanding them. Reznor said he began to grow worried about finances when he was told during a meeting with Malm and a lawyer in 2002 that there was "cause for alarm." The following year, he said, he asked Malm to tell him how much money he had. He said he was sent a financial statement that revealed he had at most $3 million in total assets and as little as $400,000 in cash. Nine Inch Nails' latest single, "The Hand That Feeds," is No. 2 on Billboard's Top 20 list of modern rock tracks. This is a damn shame, it happens to so many people. | |
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From what I know of Trent he and J.Malm seemed like very close friends. That's some friend, alright. "Can I have your millions for a hug?" | |
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damn...when will these people wake up?!? READ THE CONTRACT!!! friend or not, if you don't read the contract you will get burned. if you don't understand the contract, ask someone. heck, if trent didn't understand the contract before he signed it...and if this guy was such a close friend...why didn't he ASK his friend/accountant what it all meant BEFORE he signs? | |
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SassyBritches said: damn...when will these people wake up?!? READ THE CONTRACT!!! friend or not, if you don't read the contract you will get burned. if you don't understand the contract, ask someone. heck, if trent didn't understand the contract before he signed it...and if this guy was such a close friend...why didn't he ASK his friend/accountant what it all meant BEFORE he signs?
----- Well Trent just got out of rehab. Something tells me he signed a lot of stuff when he was high. Another reason to Say No To Drugs. | |
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I think they should make it legal to "Suge Knight" managers when they dupe artists. That would end all manager problems. | |
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laurarichardson said: Trent Reznor: Manager Duped Me
May 16, 6:58 PM EST Listen to & download Nine Inch Nails' music The Associated Press NEW YORK -- Alternative-rocker Trent Reznor testified Monday against his longtime manager, saying he was stunned to learn in 2003 that despite millions of dollars in earnings by his band, Nine Inch Nails, he was left with as little as $400,000 in cash. "I felt I had an accountant I couldn't trust," he said in his federal civil lawsuit against John Malm. Reznor contends that his former friend duped him into signing a contract that allowed Malm to collect 20 percent of the singer's gross earnings rather than net earnings. A lawyer for Malm, Alan Hirth, said in an opening statement that his client worked many years for no salary and kept nothing secret from Reznor. "Of the millions upon millions upon millions that Trent Reznor and Nine Inch Nails made, the vast majority went into his (Reznor's) pocket," Hirth said. Reznor testified he trusted Malm more than anyone in his life when he agreed to let him handle his finances in the 1980s as the band signed its first record contract. "John was the business guy, and I was the guy working for nothing in the studio," Reznor told jurors. He said the pair created their own production company and managed sales of merchandise but the expenses piled up, draining large portions of the millions of dollars the band earned with its music releases and concert tours. He admitted he ignored his finances and sometimes signed documents without reading or understanding them. Reznor said he began to grow worried about finances when he was told during a meeting with Malm and a lawyer in 2002 that there was "cause for alarm." The following year, he said, he asked Malm to tell him how much money he had. He said he was sent a financial statement that revealed he had at most $3 million in total assets and as little as $400,000 in cash. Nine Inch Nails' latest single, "The Hand That Feeds," is No. 2 on Billboard's Top 20 list of modern rock tracks. How in the hell can Trent sign ANYTHING without reading the fine print? | |
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What a fuckin' numbnuts.  | |
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this happened to someone else recently....why cant i remember who it is?
errr.... Space for sale... | |
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TonyVanDam said: How in the hell can Trent sign ANYTHING without reading the fine print? It called trust. Artists have it; lawyers, managers and accountants often exploit it. The "Suge Knight" solution would resolve all that. Who said violence never solves anything? | |
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Trent looks pretty in his trial clothes. | |
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BlaqueKnight said: TonyVanDam said: How in the hell can Trent sign ANYTHING without reading the fine print? It called trust. Artists have it; lawyers, managers and accountants often exploit it. The "Suge Knight" solution would resolve all that. Who said violence never solves anything? 50 years ago, sure, i can understand the naivite. i'm not saying the lawyers are right or justified but i'm also not going to say that trent does not (in large part) have himself to blame. business is business. its great if you can combine a friendship and a business but you should never bring the friendship into the business. a professional relationship must be assumed once the papers and pens come out. after reading and signing them, then its time to go grab drinks together. | |
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Yep, its his own fault. If he were as creatively evilesque as his songs are, he'd play dangling baby with his manager's kid until he ripped up the contract. Yeah, I know...horrible. Still, effective.  | |
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BlaqueKnight said: Yep, its his own fault. If he were as creatively evilesque as his songs are, he'd play dangling baby with his manager's kid until he ripped up the contract. Yeah, I know...horrible. Still, effective.
the contract would still be valid, though. anything signed or agreed upon under coercion is not a binding document.
i have a novel idea! read the contract...i know, its old fashioned but, hey, it still works! all these artists - especially the successful ones who have had time to renegotiate their contracts (ahem, prince, i'm calling you) - who decide to take the immediate cash rather than read the fine print and comprehend the long term stipulations of these "deals" really do deserve what they get. | |
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