Barry Manilow Sues Hipgnosis for $1.5 Million in Bonus Dispute
Written by djfrosty on August 30, 2024
Barry Manilow is suing Hipgnosis Songs Fund (HSF) in federal court in California seeking $1.5 million in unpaid bonuses related to the music rights company’s acquisition of his catalog four years ago.
The suit by the “Mandy” singer, along with his management company Hastings, Clayton & Tucker Inc, or Stiletto Entertainment, follows a similar lawsuit HSF filed earlier this month in London alleging breach of contract relating to the bonus payments. News of the California case was first reported by the Financial Times.
Before Blackstone’s $1.6 billion acquisition of HSF and its prized portfolio that includes songs by Shakira, Red Hot Chili Peppers, Manilow and others, shareholders of the publicly listed music royalty trust had revolted over, among other things, the late disclosure of some $40 million in unpaid bonus checks owed to artists.
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That liability on the fund’s balance sheet combined with suspension of investors’ dividends and accounting scandals ultimately led to invstors giving the fund’s board a vote of no confidence–a move that resulted in Hipgnosis founder Merck Mercuriadis separating from the fund and investment adviser and to the fund’s board selling the portfolio to Blackstone.
Hipgnosis acquired 100% of Manilow’s worldwide recording royalties (excluding SoundExchange royalties), comprising 917 songs, for an initial purchase price of $7.5 million in 2020. The deal included some of the 81-year-old singer’s biggest hits, including “Mandy,” “I Write the Songs,” “Looks Like We Made It,” “Can’t Smile Without You” and “Copacabana (At the Copa).”
In the 14-page complaint filed on Wednesday (Aug. 28), Manilow and Stiletto Entertainment say HSF agreed to make two additional payments of $750,000 each if HSF’s earnings from the catalog reached certain benchmarks. Manilow and his management company claim those benchmarks have been met, but that HSF engaged “in a prolonged game of cat and mouse to avoid that obligation.”
Representatives from HSF did not immediately respond to a request for comment.