More on those previously reported allegations of a Sony / BMG fall out over at SonyBMG. As previously reported, the New York Times' Jeff Leeds this week alleged that senior BMG executives are unhappy with the way former Sony chief Andrew Lack is running the merged SonyBMG record company, adding that the BMG execs who make up half the SonyBMG board are suggesting that Lack's contract should not be renewed when it comes up for renewal later this year.
But yesterday Sony Corp chief Howard Stringer denied Lack's role at SonyBMG was in question, telling reporters: "Andy Lack has executed this very complicated merger between Sony Music and BMG brilliantly. The partners are in this together for the long term. And while quarterly performance and marketshare are important, overall performance, together with artist relationships and the development of new and creative talent, are paramount. Andy is exceptionally well-suited to manage the company in this challenging and ever-changing environment".
Elsewhere, however, the US media began running stories about specific grievances that BMG execs hold towards the SonyBMG boss. The New York Post said that BMG were outraged when Lack single handedly negotiated a recording contract with Bruce Springsteen that cost the major a reported $50 million. The LA Times say some BMG execs were shocked by Lack's unfamiliarity with the music industry, while others feel the SonyBMG boss consistently favours former Sony staff members when making appointments.
That last point may, in fact, be the most important. Lack supporters say that the BMG-led spin against their man is part of a campaign to ensure he appoints a BMG man to replace the departing Michael Smellie, the former BMG exec who stands down as the merged companies COO later this year. Others, however, say Smellie's departure is at the core of the current political tensions - but more because BMG execs reckon their man is quitting because Lack gave him a pretty much powerless role in the merged company.