An attorney for Maverick Records is disputing a claim by Warner Music Group that the label has lost $66 million since 1999. Bert Fields, the attorney representing Maverick in its legal tussle with WMG
An attorney for Maverick Records is disputing a claim by Warner Music Group that the label has lost $66 million since 1999. Bert Fields, the attorney representing Maverick in its legal tussle with WMG, dismisses the allegation as "hogwash."
Fields says that WMG's claim is misleading becuase it doesn't include the profits Maverick has helped generate for the major that have been "skimmed off the top." Fields says WMG has likely netted a $100 million profit from Maverick over the period in question.
He further charges WMG with "stabbing [Maverick founder] Madonna in the back" by filing the claim in the middle of settlement negotiations over the future of their joint-venture deal.
As previously reported , WMG says in a recently unsealed Delaware court filing that Maverick's principals -- led by Madonna and Guy Oseary -- would have to cough up $92.5 million on top of a buyout price if they wanted to take control of the label.
That figure includes the cited $66 million in alleged losses along with an outstanding $20 million loan and other unrecouped costs.
WMG claims that Maverick generated $50 million in profits, shared between WMG and Maverick, prior to 1999.
WMG has an option to buy out the 60% of Maverick it doesn't currently own when its joint-venture agreement with the label expires on Dec. 31.