This is why everyone can't be a record executive.


KNOWLES INDIRECTLY BLAMED FOR SANCTUARY’S SLIDE: Delays in Mathew-run urban arm cited in profit loss.

E-mail to a friend | Printer friendly (June 30, 2005)

*Long-gestating rumors of financial turmoil at the world's largest independent music label Sanctuary Records were confirmed Tuesday with the release of its first-half pretax profit, which showed a 40 percent drop in profits from the same period last year, according to the Hollywood Reporter.


The report particularly cited problems in the Sanctuary Urban division, led by Beyonce’s father and manager, Mathew Knowles. The postponement of some albums until the second half of the year – with some product even being scrapped until next year – has cost the company an estimated $17 million in the first half of 2005. The company did not specify which albums were put on hold, but it confirmed that the power structure at the Urban division has been shifted away from Knowles to allow other executives control of production.


"Trading for the group has been profitable but adversely affected by some key operational issues that have arisen during the period under review and which have caused a substantial underperformance against expectations," Sanctuary said in a statement.


Once word leaked that the London-based firm would take measures to address its $215 million debt, company shares fell to new five-year lows Tuesday, closing down 8.8% from last year. Sanctuary, which operates a label group that controls a large back catalog, a management firm and a music publishing company, said that first-half cash flow had fallen to £6.6 million ($12 million) from £10.6 million a year ago. Overhead grew from £26 million to £30 million ($54 million) for the same period.


The firm also said that its forthcoming cost-cutting targets and actions, "are expected to result in annualized cost reductions of at least £7 million-£8 million ($12 million-$14 million). Simultaneously, the board has identified for possible sale a number of discrete businesses and assets."

Hmmm....so this may explain why the new Earth Wind and Fire CD 'Illumination' has been delayed several times

DavidEye said:

I was thinking the same thing. It's kinda sad--a few years ago, EWF were working through their own Kalimba Records, and getting distribution through companies like Rhino-- the product was getting out, but their wasn't much promotion. so now, in a bid to get a higher profile, they sign up with Sanctuary, but now they're caught up in this mess with Knowles---I bet their album release gets pushed back even further, which will make it, what, 2 years sitting on the shelf now?




..

Pathetic. If rumors are true this is just one of many problems Mathew Knowles is dealing with.

JackieBlue said:

Damn, the shit is hitting the fan.

Hotlegs said:

A NY DJ has been alluding to the fact that Mr. Knowles has also "acquired" 18 or 19 million of Beyonce's money, unbeknownst to her until just recently. Most importantly this money was taken without her permission. The story is that she's devastated at the loss...and MK has been missing for over a month. The DJ goes on to report that he has a drug habit and tastes for young hoochie mama's and Mrs. Knowles is equally devastated as she is still in love. This also semi-explains the disbanding of Destiny's Child as Mr. Knowles has a major interest in the group. I guess they're trying to stop more fund from coming down the pipeline.

The DJ has been reporting this as a blind item awaiting major media to pick up and release the story but evidently this is common knowledge in Texas circles.

But story seems to have been going on before the NY DJ started reporting it. Mathew did show up at the BET awards but Mama Knowles was not.

Send him to go work in an A and P where he belongs with Andre Harell and LA Reid.

JackieBlue said:

True.

the grammar in the subject of this thread is atrocious.

GrayKing said:

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Thank you. Your comments have been noted. Now go back to your life. I do this stuff at work. I do the best I can do.
[Edited 6/30/05 13:55pm]

cranshaw62 said:

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You said it brother. Why can't the music industry recruit from Harvard or Yale.
[Edited 6/30/05 13:55pm]

laurarichardson said:

wow. poor grammar and fucking around on the internet at work. it's amazing how some people can stay employed

paligap said:

Yeah,it seems like these guys just can't win.They tried to do the independent thing,and it didn't really work out.So they sign with a major label that is supposed to be "friendly" to old school R&B artists,and so far,it's turning out to be a disaster.The new album has been finished for almost a year.

GrayKing said:

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I have disbelief that I have to explain to you that I am trying to work and type at the same time. In the course of during the two things I made a grammer mistake. I feel sorry for that you could not pick up on that. In addition, you obviously have too much time on your hands if the grammar mistakes on Prince org are bothering you. Get a grip.

laurarichardson said:

Exactly. He's definitely overally anal retentive considering that this is a damn message board for goodness sake .

laurarichardson said:

frankly, i think you should be fired for spending time with this bullshit while you're on the clock

GrayKing said:

Unless you're Matthew Knowles or her boss I don't see your purpose here. We all make errors-- grammar, content, capitalization .

whodknee said:

it is none of your concern what my purpose here is. be about your business.

JackieBlue said:

No, she was there & sat right next to him.

Scorpion said:

That's what I thought.

Yeah, I just saw her on the replay. Didn't spot her before. My bad.

GrayKing said:

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When you are signing my paycheck I will take you opinion into consideration
Now go rest your head. All of this worry about my work habits must be making you tired.

GrayKing said:

You're right. I couldn't care less if you left, but if we're gonna be here let's not pick on people for silly reasons.

Don't blame me. I love the Sancuarty Label. I bought the lastest Cds from Kelly Osbourne, Christine McVie and the Pet Shop Boys ("Release"). They truly are a Sanctuary for artist who get dropped or want to go indie (in the case of Kelly, it was that she was dropped from Sony). That being said, I can't even think of any R&B releases from the label but the ones I've heard about sound promising. Get Matthews Knowles out of there already and release the stuff!

whodknee said:

let's all pick on people for whatever reasons we so choose. k? thanks.

GrayKing said:

Hey, I tried.

whodknee said:

i understand

MsLegs said:

they say he was fresh outta rehab. the "missing" status he had was just discretion by the family.