From the MCRFB news archives:
BEACH BOYS SEVER TIES WITH CAPITOL; GROUP ON OWN RECORD LABEL
LOS ANGELES — The Beach Boys have filed suit in Los Angeles Superior Court against Capitol Records for more than $2 million. Concurrent with the suit the Beach Boys have also severed their seven-year relationship with the recording giant and will record instead on their own record label, Brother Records.
The lawsuit arises from a 1967 audit of a Capitol Records book by the accounting firm of Prager and Fenton which revealed an alleged deficiency in royalty payment of at least $622, 618. 72, and demands payment of $1,418,827.92 in producers fees for Brian Wilson, a member of the Beach Boys group, who performed producer/production services at Capitol’s request.
The group has also initiated a conglomerate of business enterprises emanating from it’s Hollywood offices, including a recording company, a publishing firm, a travel agency, a business management company, a personal management company and a concert production firm. Direction of the various enterprises are divided by Nicholas Grillo and Dick Duryea, the latter acting as a production co-ordinator for the conglomerate.
Further, the new enterprise will take the Beach Boys beyond the confines of the recording business. Already operating under their Financial Concepts, Inc., is a Beach Boys-operated real estate syndicate and a cardiovascular clinic in Jacksonville, Florida, to be operated in conjunction with a group of prominent Florida physicians. But the primary concern of the new Beach Boys company will still be Brother Records, according to a spokesman for the group.
In addition to their new label, the Beach Boys own three music publishing companies as well as American Sound System, the company that leases their $250,000 sound system and American productions, which packages the Beach Boys and other artists’ concert tours.
Simultaneously they are in the process of building their own 16-track recording studio within their own office complex, which will form the basis for their new label, Brother Records.
All artists on Brother Records will participate in the company’s profits, predicated on a formula yet to be devised. Artist will be offered complete financial protection through Financial Concepts, Inc., a management company that will perform complete accounting services and offer financial and investment advise to any/all personnel connected with Brother Records.
Finally, the artists will have their personal appearances, fan clubs, and merchandising organized through American Productions, another Beach Boys subsidiary. END.
(Information and news source: Billboard; April 12, 1969).
What I find insane is how capitol royally screwed the beach boys by not reporting the total sales of pet sounds costing them what woulda been a way higher chart position in america AND thus costing them another gold album…not to mention the lack of marketing/promotion yet they kept the hype machine of the beatles goin for five years! Joshthekook at gmail dotcom