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  1. #1
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    12.31.69 @ 04:00 PM
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    Hate to say this, hope it is not true, but just heard on an Ottawa station (Chez 106) that Van Halen is indeed broke. Their source? WB, apparently, according to the story, Van Halen does owe WB money but it was unspecified, and no reason as to why but stated there never has been a reunion, only a failed attempt over a year ago. Never went beyond the offer.
    Hope it ain't true.
    Life is something that happens when your planning something else.

  2. #2
    Good Enough Van Gully's Avatar
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    09.04.17 @ 05:32 AM
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    Dude, I hope not. First VH being in the crapper and then having to apologize to DLR Newzpunk would not make me happy. [img]smilies/mad.gif[/img]
    "Gully, watch yourself. I am dead serious." - Brett Norton, Emperor of VHLinks.com

  3. #3
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    12.31.69 @ 04:00 PM
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    And what, praytell, could Van Halen POSSIBLY owe WB for? I have made this point before, and I'll make it again: the original debt rumor was based on the poor sales of VH3. Think legalese here; VH3 is not a Van Halen record, it is a WARNER BROTHERS record that happens to have been written/performed by Van Halen. By releasing the album on their label, they take financial responsibility for its promotion and sales, not the band.

    If VH started their OWN label and released it, that would be a different story. Then it would be THEIR album.

    WB remastered the first 6 records. This is NOT an expensive process, as there was essentially no promotion, and the mastering process is not expensive. Likewise, printing a CD isn't costly either. WB is a HUGE company; and at this stage of the game, Van Halen means NOTHING to their current financial situation--the label has hundreds of 'active' bands, not to mention movies, television, cartoons, toys, merchandising, etc. If you wish to consider VH's contributions, factor in the # of cd's sold each year of theirs that haven't been promoted in any way for 20 years. Airplay every day on how many stations means how much in royalties?

    The rumor is simply not plausible. Stop the panic please. If you wanna panic, panic over the long wait, not rumors. [img]smilies/biggrin.gif[/img]
    Don't bark at me...<b>I</b> didn't name ya.

  4. #4
    Good Enough Van Gully's Avatar
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    09.04.17 @ 05:32 AM
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    Go get'em Abe!! You're right this is nothing but good ole fashion bullshit. Glad to see it's still around,though, it's been kind of quit around here in the Mill. More entertaining bullshit, please. [img]smilies/biggrin.gif[/img] [img]smilies/tongue.gif[/img]
    "Gully, watch yourself. I am dead serious." - Brett Norton, Emperor of VHLinks.com

  5. #5
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    05.04.17 @ 02:11 AM
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    The rumor about VH being broke could be bullshit, but it's certainly possible. It's more likely that Alex Van Halen is broke -- due to his many divorces and other vices.

    Van Halen can definitely owe WB money because record labels often advance artists cash upfront based upon stipulated sales agreed to in a contract. This is how many bands make little or no money unless their albums go Gold or even Platinum. If the album stiffs, the artist is spending money they have to repay!

    I don't buy that Edward has *any* financial problems because he changed the royalty arrangement during the Sammy years. He and Sammy each received a 35% take and Mike & Al got 15% a piece. Also, Ed has more lucrative endorsement deals than Al. Finally, Ed did not need to make numerous alimony payments like Al. Everyone knows that divorce is a really quick way to the poor house!

  6. #6
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    12.31.69 @ 04:00 PM
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    <BLOCKQUOTE>quote:</font><HR>Originally posted by mikeno55:


    Van Halen can definitely owe WB money because record labels often advance artists cash upfront based upon stipulated sales agreed to in a contract. This is how many bands make little or no money unless their albums go Gold or even Platinum. If the album stiffs, the artist is spending money they have to repay!

    <HR></BLOCKQUOTE>

    That may be the case with a NEW band; however, Van Halen has a much more beneficial deal. Also, a large portion of up-front monies given to bands is for recording costs, recouped via album sales. If the album does not sell enough to recover that money, the deal is broken. Since Eddie owns the studio, the costs of recording are basically reduced to paying the staff. Producers are either paid a lump sum, by points, or in a few cases both. With Mike Post being a personal friend of Eddie's, and NOT a WB employee, his fee (if there WAS one) would have nothing to do with the record company. With Eddie also producing 3, I don't think he billed himself out.

    Sammy's net worth is somewhere around $100 million. Van Halen has sold more records, and gets a LOT more airplay than Sammy's solo work. So what do you think THEY are worth?

    Alex may be in the worst shape because of divorce, but I would think that after one failed marriage, a prenuptial contract would be expected. I highly doubt he is bankrupt.

    Sorry, they are NOT in financial straits. So give up on this rumor; it's BS through and through.
    Don't bark at me...<b>I</b> didn't name ya.

  7. #7
    Hang 'Em High Stuff No More's Avatar
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    01.08.05 @ 11:08 AM
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    The way I always understood the business was a band negotiated a cash advance from the record label to pay for the recording process, after which their small share of the profits from CD sales would be deferred to the label until the advance was paid.

    I SUPPOSE if the legal wording was right WB could go after concert and t-shirt sales to finish the financing, but it seems more like WB buys the songs and takes responsibility for losses, not unlike a book company buying a novel from an author. As VH runs the tour, not WB, any attempt for an outside source to lay claim to that money (or personal VH money) would require a clause in the contract or a legal action (such as declaring bankruptcy on the band) that allows creditors to claim personal assets of the individual.
    "Just once I'd like to do the right thing and not get punished for it."

  8. #8
    Atomic Punk Wolfman's Avatar
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    07.20.17 @ 03:43 PM
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    [img]smilies/confused.gif[/img] A failed reunion attempt from "over a year ago" doesn't exactly jibe with Dweezil's comments in January.

    Sorry. Just more bullshit. [img]smilies/tongue.gif[/img]

  9. #9
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    12.31.69 @ 04:00 PM
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    A friend of mine used to play in a VERY popular Canadian band in the 80's, and one day during a heated debate about Napster he gave me these stats and figures.

    This is all based on Canadian Figures, for the US triple each number.

    $100,000 recording costs for basic CD
    50,000 basic video
    50,000 will need at least 2, maybe 3 vids
    --------
    $200,000

    That $200,000 the record company lends, or, fronts the band...got it so far? From each CD sold the 'band' gets $1.00. In Canada a platinum album is 200,000 copies, so to just pay your recording costs you have to go platinum. His band sold 300,000 on their first.

    Royalties are collected by the publishing company, like ASAP as an example (think that is abreviation), anyway, publishing company takes 50% of the royalties, is their 'fee' for collecting them and keeping track.

    In that respect, my friend told me the money is in fact NOT in the album sales but is in the merchandising #1 (t-shirts etc) and touring, which is long and exhausting especially if you have a family.

    He also met Ray Daniels, to quote him 'a shrude business man', and to anyone's guess Sammy Hagar is not well liked at the SRO offices.

    Back to the point, taking this into account, yes it is 'possible' Van Halen are bankrupt, but that also depends how the Van Halen the corporation invests it's profits etc. Invidual band members depends how they manage their money, divorce will certainly do it to anyone so just get a mistress and keep your damn mouth shut!
    Life is something that happens when your planning something else.

 

 

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