Berry Gordy vs. Barney Ales

[dvus7]

I enjoy talking about the "business" of Motown!!!!! Barney Ales was getting percentage points on the gross profit[[before Berry was getting his). Berry Gordy had to Fire Barney Ales, because Mr, Ales was getting apart of his profit.

[theboyfromxtown]

And since Barney Ales was being paid based on gross profit, if the business made a loss, Berry would get nothing whilst Barney wouldn't.

[motony]

Barney Ales was a major part of Motowns financial success.I heard he could be very persuasive in getting distributors to pay up.

[theboyfromxtown]

I guess he was just as persuasive about his worth.....those kind of people have to be

[dvus7]

And since Barney Ales was being paid based on gross profit, if the business made a loss, Berry would get nothing whilst Barney wouldn't.

No, the gross is revenue minus the cost of making [[pressing the record). Mr. Ales was paid before the recording artist!!!

[theboyfromxtown]

Maybe I didn't explain myself well. Let me try again.

I don't know the precise terms of the payment agreements between Barney Ales and Berry Gordy [[although being paid by reference to gross would be better than net for Mr Ales). Neither do I know the corporate structure that was in place that determined where Barney Ales' costs, studio recording costs, distribution costs, in-house staff salaries, artists on payroll salaries and artist paid by reference to royalty agreements were dealt with in their financial records but what is clear is that Mr Gordy was the one that took the ultimate risk. It was, for all intents and purposes, his name that was on the line and if things went sour, he stood to lose the most and be left with facing the consequences.............whereas Barney Ales would not.

[motony]

I think you are correct, crosstown.

[theboyfromxtown]

I think you are correct, crosstown.

Thank you Tony. I'm glad the further explanation was more clear of the point I was trying to get across.

[dvus7]

Maybe I didn't explain myself well. Let me try again.

I don't know the precise terms of the payment agreements between Barney Ales and Berry Gordy [[although being paid by reference to gross would be better than net for Mr Ales). Neither do I know the corporate structure that was in place that determined where Barney Ales' costs, studio recording costs, distribution costs, in-house staff salaries, artists on payroll salaries and artist paid by reference to royalty agreements were dealt with in their financial records but what is clear is that Mr Gordy was the one that took the ultimate risk. It was, for all intents and purposes, his name that was on the line and if things went sour, he stood to lose the most and be left with facing the consequences.............whereas Barney Ales would not.

You are correct and I am pretty sure that was reason he was fired!!!!! If you noticed Mr. Ales was the only that Mr. Gordy went into specific details, in his book, over his firing!!!!

[theboyfromxtown]

You are correct and I am pretty sure that was reason he was fired!!!!! If you noticed Mr. Ales was the only that Mr. Gordy went into specific details, in his book, over his firing!!!!

I read the book a long time ago now Dvus7 but I don't recall that part now. Put it down to old age!