Dick Griffey Puts New Energy Into Black Music : SOLAR POWER

The Deele’s “Shoot ‘Em Up Movies” is climbing the charts. Dynasty’s “Tell Me (Do U Want My Love?)” has made a respectable showing this year, and L. A. and Babyface are all over the charts as the writer-performers responsible for several hits that have perked up the ears of black music fans recently. And, of course, veteran hit makers the Whispers just signed a new long-term contract.

Dick Griffey, the burly 49-year-old whose record label records these pop music stars, is pleased as punch as he surveys the scene from the Hollywood headquarters of Dick Griffey Productions. The black music business, which Griffey has influenced by nurturing young songwriters and producers, is stronger than ever. And he’s heading for Atlanta this week for the Democratic National Convention, as a personal adviser to the Rev. Jesse Jackson.

Never mind that a unit of entertainment giant Warner Communications is trying its best to bounce him from his penthouse perch. Griffey, leaning back comfortably in his swivel chair, doesn’t give the appearance of a man who is about to be moved anywhere.

Sockless and sporting an open-collar shirt, he casually dismisses his powerful adversary. “The only thing they can get from me is money. If they should win in court,” he added, stressing the if. Griffey is suing Warner, and Warner in turn is suing Griffey.

But notwithstanding the long-running feud over a $6.6-million debt and charges of dirty dealing and racism, for the moment things are looking up for Griffey’s business after a recent slump.

His centerpiece is Sound of Los Angeles Records, a black pop music label known as Solar. He also owns the Constellation Record label and two music publishing companies--Hip Trip Music and Spectrum VII Music--and occasionally does business under the Spectrum Records name.

With the just concluded sale of Motown Records to giant MCA, Griffey’s will soon be the largest black-owned record label in the country. He is among a dwindling number of black entrepreneurs in the lucrative black music business that is now controlled by big, white-dominated entertainment companies.

Griffey’s is already among the nation’s largest black-owned businesses. According to Black Enterprise magazine’s annual survey, Dick Griffey Productions, his private holding company with 1987 revenues of $43.9 million, ranked 11th among the top 100 black-owned industrial and service companies.

Griffey, a Nashville native, started in the music business as a nightclub owner. Jack Gibson, a pioneer black disc jockey who now publishes a black music newsletter in Orlando, Fla., remembers meeting Griffey more than 20 years ago in Nashville. “He was a young man hungry for knowledge of a business he found fascinating. He approached it as something about which he wanted to learn everything there was to know.”

And learn he did. He was considered a promising drummer at Tennessee State University where he studied biology with the intent of becoming a doctor. Bitten by the entertainment bug, he moved to Los Angeles in the early 1960s. But his interest wasn’t in entertaining. “I started thinking how entertainers come and go, but business people are always here,” Griffey said.

He operated a nightclub with schoolmate Dick Barnett, a former New York Knicks basketball player and coach. He was so successful booking acts for the club that he formed Dick Griffey Promotions to branch out into concert promotions and quickly became the city’s most prominent black promoter. He promoted domestic and international tours for Stevie Wonder and the Jacksons, among others.

Songwriting Talents

He signed on as talent coordinator for the long-running “Soul Train” television dance show and in 1975, formed Soul Train Records with the show’s producer and host, Don Cornelius. Cornelius eventually sold his share of the record label to Griffey, who reorganized it as Solar in 1977. (Griffey never owned a stake in the “Soul Train” TV show.)

By 1980, after the Whispers’ “And the Beat Goes On” hit single led to album sales of 1.5 million, the music press was calling Griffey the most promising new black music executive. As a songwriter and producer (he shares writing credits for “And the Beat Goes On,” which became somewhat of an anthem for a generation of blacks), Griffey was getting the sort of attention that had been showered on Motown founder Berry Gordy in the 1960s, and Kenny Gamble, Leon Huff and Tom Bell in the 1970s, when their Philadelphia International Records was hailed as the most exciting black music factory.

Griffey was eagerly sought out by major entertainment conglomerates. Warner’s Elektra/Asylum/Nonesuch Records considered it a coup in 1981 when it signed up to distribute Solar Records. But the deal turned sour and landed in court. These days, neither party seems in a mood to settle.

The fight provides a revealing look at Griffey’s private operations and how the $5.57-billion pop music industry operates. But the legal battle also highlights underlying racial tensions in pop music, where race plays a big role in how performers are categorized and marketed.

Vocal About Alleged Racism

The black community, concerned about whether blacks reap a fair share of the economic benefits of an art they create, is watching the suit closely. The recording industry, which revolves around issues of distribution and royalty payments such as those in dispute here, is also playing close attention.

Some critics complain that black performers are kept from a broader audience by being arbitrarily classified in the industry-created “black music” category. Griffey has been vocal about alleged racism in the industry for a long time. He has called for boycotts of black stars who don’t use their clout to generate more work for black professionals in the record business. And he has complained that black concert promoters, sound and lighting companies, caterers and limousine services don’t get enough work from big concerts.

“Music is the greatest natural resource in the African community, and the industry generates more dollars by and for African-Americans than any other single industry. Therefore, it is important that African-Americans who are successful in the music business return something to the community which helped them succeed,” he said.

Griffey took aim at Warner in 1986, when he filed a $386-million lawsuit accusing the Elektra division, Warner Bros. Music and the parent company of a long list of wrongful actions against him. He claimed that in carrying out its part of the distribution agreement with Solar, Elektra “has deprived and prevented Solar and Griffey from the enjoyment of the same right in enforcing contracts, namely the distribution agreement, as is enjoyed by white citizens.”

He alleged that Elektra “on an unlawful and discriminatory basis” failed to fulfill contractual obligations to adequately promote and distribute the works of Solar’s black artists.

The undisputed fact is that Griffey initially borrowed $4.5 million from Elektra to build his company headquarters at 1635 N. Cahuenga in Hollywood. That debt later grew to more than $6 million to cover a short-term cash shortage, but Griffey’s company repaid only a little over $1.6 million before stopping payments in 1986.

Elektra foreclosed on the office building--valued at more than $5 million--last fall, and is trying to sell it. But Griffey has filed a separate lawsuit in California state court, thus far blocking his eviction.

Valuable Asset

Griffey alleged in his 1986 federal suit that because the loan required him to post most of Solar’s assets in addition to the building as collateral, it became a means for Warner to attempt to “expropriate” his business.

He complained bitterly that, because of the loan, Elektra “coerced, pressured and intimidated” him in 1984 into agreeing to disadvantageous amendments to the distribution agreement. He claimed that Elektra handled the promotion and distribution of Solar records in a manner designed to limit his income and failed to make certain payments due to him. Additionally, he claimed that Elektra “induced” Howard Hewett, the former lead singer of Solar’s Shalamar group, to break contracts with Solar and sign exclusive pacts with Elektra.

He said Elektra took the action because it knew that Hewett, also a songwriter and producer, was one of Solar’s most valuable assets. He also accused Elektra of trying to break other valued relationships, including one with The Deele, Solar’s current star act.

Shortly after Griffey filed suit, Jesse Jackson called for a boycott of Warner products to demand parity for blacks in the record industry. But the boycott call was widely dismissed by many as a case of a politician trying to help a friend. Griffey is a close adviser to Jackson and has worked to raise money for the Jackson presidential campaign.

The boycott has had no apparent impact on Warner’s record sales, although it is technically still in effect.

In its court response to the lawsuit, Warner has presented itself as the aggrieved party that got stiffed on a debt. Griffey’s suit, Warner claimed in court filings, resulted “out of (Griffey’s) sheer frustration with his financial problems and Solar’s business failures.”

Warner filed documents showing that Solar had led Warner to believe that Solar would pay back the loan by renting out part of the six-story office building. However, Solar didn’t carry out that plan, Warner claimed. (Griffey said tax law changes made it impractical to make the investments needed to attract tenants.)

Warner also presented evidence that it spent close to $5.7 million on promotion and advertising for Solar’s acts during the period the agreement was in force between 1981 and 1986. It also said it advanced to Solar, or on Solar’s behalf, more than $13.7 million. Those were expenses that could be reimbursed from royalty payments due to Solar, Elektra claimed.

Letter Entered in Court

During the five years, Warner said it distributed 20 Solar albums with net retail sales of more than $35.3 million. Under the 1984 amendments to the agreement, Solar was to produce 25 albums, but delivered only six, Warner said.

Warner said Solar “didn’t voice any objection to Hewett recording for Elektra until it became tactically advantageous to do so.” In a letter to Solar entered in the court record, Hewett’s attorney recalled a Shalamar song titled “Amnesia.” He said Solar’s executives seemed to have forgotten that they gave Hewett permission to talk to Elektra about a solo career and lawyers representing both Elektra and Solar drafted the agreement releasing Hewett from Solar to record for Elektra.

However, Solar said the execution of the agreement required its express written consent and that it and Elektra reach certain agreements on royalties for Shalamar records. It said neither condition was met before Elektra released Hewett’s albums.

Before it all blew up, Solar and Elektra seemed delighted to be doing business together. The reasons were simple. “Black music accounts for a fourth to a third of pop sales. If you don’t have black music, you’re not in the pop music business,” said Nelson George, a columnist for Billboard magazine, which tracks the record industry.

Joseph Smith, who was Elektra’s chairman until 1983, expanded on that point in pretrial testimony explaining why Warner was eager to do business with Griffey. “Black music is a vital part of the American music scene, both artistically and financially. To the extent that Elektra wasn’t in it, I felt it hampered our growth.”

Elektra and RCA Records, which was at the end of a distribution agreement with Solar, engaged in a bidding war to make a deal with Solar, according to Solar general counsel Virgil Roberts in pretrial testimony.

Something for Family

Elektra’s willingness to advance money for the office building was apparently the key to the deal. As Roberts explained it, Griffey felt that consolidating his operations in one place would improve the business and save money on studio rentals. Also, he wanted “something that would allow him to leave something valuable to his family . . . he wanted something less ephemeral than a copyright or an act,” Roberts said.

Griffey, the father of three, is married to pop singer Carrie Lucas. His 27-year-old daughter Regina manages the studio facilities in the Solar building. Nineteen-year-old Carolyn, who has aspirations to become a singer, also helps out at the company, often handling the switchboard. Eight-year-old Lucas, who has a number of computers and electronic gadgets at the family home in Chatsworth, “is going to be a pilot, an astronaut or an entertainer,” said Griffey, who enjoys watching over the care of his stable of thoroughbred horses. He doesn’t write songs or personally produce records any more, he said.

Griffey terminated the agreement with Elektra in 1986 and made a deal with Capitol-EMI Records. Elektra in turn sued Capitol, charging unfair competition and inducement to breach a contract. That deal has a critical difference in that Capitol handles only distribution and Solar has responsibility for everything else, which puts more control and income in Griffey’s hands. Capitol also loaned Solar $2 million (interest-free during the life of the distribution agreement), according to court papers. But Capitol stipulated that it would take payments out of royalties due Solar.

Despite the legal wrangle, Griffey’s business appears to be in good shape, Gibson said. “It’s his ballgame. He can take it all the way to the World Series or he can lose it in the playoffs.”

Perhaps the company’s most valuable asset now is the team of Antonio Reid and Kenny Edmonds, members of The Deele who also write and perform separately under the names L.A. and Babyface respectively. “They are the hottest young producer-songwriters in black music around today. Their ‘Two Occasions’ is just a great pop song,” said George, the Billboard columnist.

Griffey says an unfavorable outcome in the legal battle won’t jeopardize his business. “We’ve already won the fight to take our own destiny into our own hands. That in itself was worth any price,” he said.

These days, he is concentrating on developing the company’s 14 acts and grooming new talent, including an unnamed “girl group” that will include his daughter Carolyn. “That’s what we do best. We discover and teach talented people. That’s how we compete. We trained all of the young black producers around today.”

TOP LABELS FOR

BLACK SINGLES

No. of Singles

Labelin Top 100, 1982-87

Columbia 214

Capitol/EMI 188

MCA 175

Warner Bros. 166

Arista 134

RCA 132

Motown 118

A&M; 118

Epic 100

Mercury 61

Gordy 62

Elektra 50

Solar 49

Note: Sony Corp.’s CBS Records Group owns Columbia and Epic. Warner Communications owns Warner Bros., Atlantic and Elektra. Bertelsmann AG’s Bertelsmann Music Group owns RCA and Arista.

Source: Billboard