THE GRAMMYS FALLOUT GETS MORE SHOCKING EVERY DAY – BUT HOW RELEVANT IS THE SHOW TO THE MODERN RECORD BUSINESS?
Los Angeles is abuzz with the countdown to the Grammys this Sunday (January 26).
But dominant within these conversations is a slice of drama worthy of its own Hollywood production: an ousted female CEO locked in a vicious public battle with a male-dominated institution over her dismissal, her allegations of villainy… and, of course, the money she’ll receive for her exit.
That female CEO is Deborah Dugan, the former boss of Bono’s Red, who was named Chief Exec and President of the Recording Academy as recently as August last year.
Significantly, Dugan was the first woman to head the Academy in its history. She was hired following fierce criticism of the Grammy-running org over its diversity and inclusion practices – particularly pertaining to gender.
Since January 16, when Dugan was placed on administrative leave by the Academy’s bosses, all hell has broken loose:
The now-acting CEO of the Recording Academy, Harvey Mason Jr., sent an open letter to Academy members on January 20, detailing that an employee had alleged a “toxic and intolerable” and “abusive and bullying” working environment created by Dugan. That employee is now known to be the former assistant of ex-Recording Academy CEO Neil Portnow – the man who infamously suggested in 2018 that women who felt under-represented by the Grammys should “step up”;
Dugan’s dismissal just-so-happened to come three weeks after she sent a bombshell internal memo to HR, the shocking details of which emerged yesterday (January 21). In the memo, Dugan alleged that she had received unwanted sexual advances from top music industry lawyer, and Recording Academy General Counsel, Joel Katz. (Katz has “categorically and emphatically” denied this.) Dugan also outlined what she calls “egregious conflicts of interest, improper self-dealing by Board members and voting irregularities with respect to nominations for Grammy Awards, all made possible by the ‘boys’ club’ mentality and approach to governance at the Academy.”;
In a complaint filed with the Equal Employment Opportunity Commission yesterday (January 21), Dugan further alleged that the voting system of the Grammys is “ripe with corruption” and allows committee members to “push forward artists with whom they have relationships”. She also claimed that the Academy paid “plainly exorbitant” legal fees – in excess of $15m – to firms including Katz’s employer, Greenberg Trauig, over a five-year period;
The Recording Academy claims that Dugan previously offered to “withdraw her allegations” and resign from her role as CEO, on the proviso that she was paid “millions of dollars”. Billboard says Dugan asked for $22m; Variety’s sources reckon that number is “completely untrue”. Whoever’s right, it seems an eight-figure settlement payout could now be in the offing;
The Dugan drama has been a controversial and unsavoury curtain-raiser for the 62nd Annual Grammys, understandably attracting the ink of US entertainment staples from the Hollywood Reporter to the L.A Times, Page Six and Deadline.
As such, it has rather drowned out any other industry conversations related to the Grammys – including that regarding the relevance of the show, versus the annual expense ‘Grammy Week’ incurs for the record industry.
Four days out from the ceremony, that’s a conversation worth having.
The Recording Academy may claim that the Grammys is “music’s biggest night”, the show may still attract a TV audience of over 19 million – but, in reality, does it still have any material effect on the prosperity of the record business?
To answer that question, has used BuzzAngle data to determine what happens to the US record industry in the week after the Grammys – the days following the three-hour televised ceremony, and its famed live performances.
Does it have any meaningful impact on the fortunes of the biggest records, and their labels, in the United States?
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