from CNN.com


LOS ANGELES, California (Hollywood Reporter) -- Madonna's Maverick Records label, home to the Material Girl as well as Alanis Morissette and Michelle Branch, has lost $66 million since 1999, according to recently unsealed court documents filed by its adversary and partner, Warner Music Group.

The documents relate to the latest spat in the 12-year-relationship between Maverick and Warner Music, which was recently bought from Time Warner Inc. by an investment group led by Edgar Bronfman, Jr. Time Warner is also the parent company of CNN.

Last month, Maverick sued Warner Music for $200 million, claiming breach of contract and fraud. The Warner documents were part of a pre-emptive claim filed in a Delaware court asking a judge to find that the company had fulfilled its commitment to Maverick.

The documents claim that in order for Maverick to get out of its joint venture with Warner Music, which is up at the end of the year, Maverick will have to pay $92.5 million, in addition to the value of Warner's interest in the label. The price tag includes the $66 million in losses, a $20 million loan and $6.5 million in unrecouped fees.

According to Warner Music's filing, if Maverick cannot raise the money needed to buy itself out the joint venture, Warner can convert the label into a "purely passive economic interest," taking all control of the label away from Maverick. In this case, Maverick would reap no profits from the label until the losses were repaid.

A Warner Music spokesman declined to comment. Maverick could not be immediately reached. The label is gearing up for the May 18 release of Morissette's first album in two years, "So-Called Chaos." The following week, Madonna begins a world tour in Los Angeles.

Remember a long ago defunct little label in the 80's called "Paisley Park"? Good thing the biggest star on the roster was Prince.
Hey, at least Madonna's label released hit albums by artists other than her.

I don't know why this is being trumped up so much. It's a vanity label that has taken a relatively minor loss. The major labels often post big losses, this is nothing new.

I may not agree that Madonna is a great superstar
but she is indeed a talented Business women!
but we all make mistakes
maybe she should consider getting FREE
Prince is indeed the visionary for enslaved artist everywhere

Luv4oneanotha said:

Lol, I think Madonna is many things, but she will not play the part of enslaved artist at this point in her career.

I don't think she's a slave just another person feeling the pressure caused by the advent of online music trading. She probably feels she could get a better deal out of a different label now that Warener Music is independent form the TimeWarner family. Anyone know what happed to Sire Records? Did Maverick absorb them or did it just go away?

VoicesCarry said:

Exactly.These days, every record company is losing money,including the so-called "successful" labels.Arista Records lost over $100 million in the last two years (one reason why L.A. Reid was fired),and even Clive Davis' label (J Records) has lost over $60 million since it's inception.The music business is such a mess right now,and Maverick's failures aren't really surprising.

Already previously posted people:
http://www.prince.org/msg/8/90346

DavidEye said:

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But is it not interesting that her label has been losing money since 1999 but they are only now getting rid of her and not in a public manner. Prince must be laughing his ass off.

laurarichardson said:

Um, she's trying to get rid of them. Madonna's wanted out of Warner for a while.
[This message was edited Thu Apr 22 10:35:31 2004 by VoicesCarry]