[rocknation]

Blabbermouth.com: QUEENSRŸCHE...(are) attempting to raise $2 million by selling stakes in...a "new holding company for all things QUEENSRŸCHE" that will receive the revenues from its tours, merchandising, album sales and digital downloads.

For a minimum investment of $50,000, fans who pass an independent accreditation process can purchase an equity ownership stake from a private consolidated holding company that entitles them to "a fixed percentage" of future revenue...An internal board of directors comprising drummer Scott Rockenfield, bassist Eddie Jackson and guitarist Michael Wilton, (plus) band counsel Thomas Osinski, will oversee the corporation.

"Traditionally, a band would not go into their personal pockets to [bankroll and control a recording-and-touring effort]," (their) securities attorney...said. "They would go to Capitol Records" or the like, which would dictate the project and give them an advance but "also take a huge swipe of the money...By disintermediating the labels, we're leaving more money on the table both for the band and people who invest."

QUEENSRŸCHE's latest, self-titled album sold around 13,500 copies in the United States in its first week of release to land at position No. 23 on The Billboard 200 chart. The record arrived in stores on June 25, 2013 via Century Media Records.

Not to be confused with what David Bowie did:

Seattle Times: David Bowie...raised $50 million a couple of decades ago by selling bonds secured by future royalties on his music. But he didn’t sell equity in David Bowie Inc.

"Disintermediated" record labels? It's more likely that the response to Queensryche's latest self-titled album (minus singer Geoff Tate and guitarist Chris DeGarmo) has caused Century Media Records to become disengaged, rather than disintermediated, from backing their next one. But that's no problem -- just round up 40 people who have $50,000 to burn on holding 20% of the holding company! But not just any 40 people:

The stock deal Queensrÿche rolled out this month utilizes a provision of the 2013 JOBS Act that allows promoters to publicize a private stock placement, though only “accredited investors” — with a net worth of $2 million, not counting a home — are eligible to invest...

Queensrÿche was in legal turmoil for almost two years after lead singer Geoff Tate split with three other original members and both groups claimed the name. Once that dispute was settled in April, the three who got to keep the Queensrÿche name — Eddie Jackson, Scott Rockenfield, Michael Wilton — added singer Todd LaTorre and guitarist Parker Lundgren, and began planning the stock sale.

QUEENSRYCHE: (RE)BUILDING THE EMPIRE

On their crowdfunding site, they're calling it "Building The Empire." But while the lawyer is in for a full 25 per cent of the holding company, the newest members get nothing? The least they could have done was cut the equity pie five ways and given LaTorre and Lundgren half a slice.

Once word about this gets around, what's left of Queensryche will be lucky to be left with 4,000 fans. Meanwhile, all Geoff has to do is get a one-off record deal, do a tour based on his new material plus Operation Mindcrime plus other Queensryche classics -- and his former colleagues will officially become just an overpriced tribute band.

A cautionary tale for Jon and Richie: Tread carefully -- both of you -- or this could be your future!

[rocknation]

UPDATE: From Queensryche singer Todd La Torre:

...I just wanna make clear, (so) that everyone knows...when they buy...those (crowdfunding) packages, it's not...to bankroll the record. I've seen some rhetoric about that; it makes it look like we're trying to raise money to finance an album...that's not the case. The record's coming out through Century Media, it's funded that way, just like the last record. So I don't want people to think that we're trying to sell merchandise to fund an album.

We're offering unique bundles and packages that are exclusive, for a limited time, as a creative way to offer something to the fans and supporters...you have to be creative with ways that you can also generate some income. So they're getting something, a commodity, for a monetary value. It's not, like, 'Donate, and then we'll put this out.' It's to enhance the process. So I wanna make that very clear...

On the crowdfunding merchandising page, you could "pre-order" things costing up to $35,000 US -- including the album due out "next year." But payment is expected immediately, though "All exclusives to be fulfilled by 30 April, 2015 unless otherwise stated." Clear as mud, Todd.

As for the record deal, I stand corrected, but I also stand suspicious: If funding the new album isn't an issue, then WHY does Queensryche need money so desperately they're selling stock AND doing crowdfunding? It might help to know some of Geoff's side of the story:

I think it really began around February of (2012)...about moving our merchandising to a third party. We had control over our own merchandising company for years and years and we ran it ourselves. It's a very successful entity, and the other three guys wanted to...hand it over to somebody else and pay them more money to operate it...Our manager found another company that would do it for considerably less...

(W)e had a gig in Sao Paolo, and before the show we had a meeting...They said that they weren't planning on replacing me, but they had just fired our manager, our office assistant and one of our guitar techs, who all happened to be my family members...They had worked for us for ten years...

Of the 144 songs that Queensryche has released, I've written 116...I'm a 25 percent holder in our companies... (They want to) cut me out...split (my) 25 percent...and hire some young guy that's gonna work for a weekly wage...

And Century Media's side of the story:

...Eddie Jackson, Scott Rockenfield and Michael Wilton have successfully agreed to...buy out their former lead singer's share of the Queensrÿche corporation while allowing him the ability to be the only one to perform Operation: Mindcrime and Operation: Mindcrime II in their entirety.

(Tate)...can only refer to himself as the "Original Lead Singer of Queensrÿche or "Formerly of Queensrÿche" for a period of two years...(after which)...he can(not)...mention Queensrÿche at all...As of September 1 (2014), there will be only one Queensrÿche entity (who) will continue to perform selections from their entire musical catalog including songs from Operation: Mindcrime...

Mystery solved: Queensryche need money so desperately because the buyout of Geoff most likely included giving him the rights to the entire Queensryche back catalog -- leaving them so broke, they're trying to pay their newest members with crowdfunding, and one of their lawyers with a piece of the holding company! That makes shutting La Torre and guitarist Parker Lundrgen out of the holding company that much more unforgivable: with minimal publishing/back catalog ownership at the very most, and the creators their music gone, the only "asset" the remaining members of Queensryche have is the band's name.

Geoff just announced a new record deal; an album is due by summertime. He, too, has every right to perform the Queensryche back catalog -- but unlike his ex-bandmates, he can also continue to cash in on its publishing and recording royalties. That puts Geoff only an Operation Mindcrime Live album away from officially turning Queensryche into the overpriced tribute band they now are.

P.S: Congratulations, Jon -- you are no longer the year's most financially deluded rocker!

[Old Joysey]

Well, nothing new under the sun... A band is like a sexless marriage and when there's a divorce it gets as ugly as can be and money is ALWAYS the main priority.

And as a rule record companies DO care about the band line-up when it's about renegociating the record deal, especially when there's a problem between songwriters and frontmen (they're not necessarily the same guys) because the sound and the image of the band are what sell.

So when Jon laughs and says that Richie's departure is "no big deal... the record company doesn't care", if he really thinks so (and I dare hope he's smarter than this) he's only fooling himself.
It's a sad ending for a band that managed to survive the 80s and remain commercially successful for 30 years.

[rocknation]

Originally Posted by Old Joysey

...(A)s a rule, record companies DO care about the band lineup when it's about renegotiating the record deal, especially when there's a problem between songwriters and frontmen...because the sound and the image of the band are what sell...

If this had happened to a band whose music I wouldn't miss, I'd be gloating my head off. But in the case of Queensryche (and possibly Bon Jovi), it's flat out heartbreaking.

Ironically, what Queensryche is trying to do would have a good chance of working for Bon Jovi if they were to lose their record deal and didn't want to invest their own money...as long Jon and Richie were in the lineup, of course.

[rocknation]

And another one bites the dust:

Blabbermouth.net: THE BLACK CROWES, the highly influential critically and commercially successful act, has disbanded, founding member Rich Robinson (has) announced...The group's catalog...includes...their first album, Shake Your Money Maker, the critically acclaimed Amorica, By Your Side and a live collaboration with LED ZEPPELIN'S Jimmy Page...

Said Rich in (a) statement: "It is with great disappointment and regret that after having the privilege of writing and performing the music of THE BLACK CROWES over the last 24 years, I find myself in the position of saying that the band has broken up.

"I couldn't be more proud of what we accomplished...I love my brother (vocalist Chris Robinson) and respect his talent. But his present demand that I must give up my equal share of the band, and that our drummer for 28 years and original partner Steve Gorman relinquish 100% of his share, reducing him to a salaried employee, is not something I could agree to..."

[Kathleen]

Originally Posted by rocknation

And another one bites the dust:

Yeah - I knew about this one - and I mourn. The Black Crowes have given me many wonderful shows and memories over the years.