Prince Behind the Purple Curtain

What’s going on behind the Purple Curtain?

The biggest story in the music industry last week was Prince’s stunning realignment of his royal court. The flamboyant pop star not only severed his ties with his longtime management team, lawyer and business manager, but announced he was now being managed by “Purple Rain” writer-director Albert Magnoli, who’s never managed anyone before in his life.

Neither Prince nor Magnoli nor Warner Bros., Prince’s label, would comment on these dramatic career moves, which came after months of rumors of financial and career setbacks. (Ousted manager Steve Fargnoli would only call the parting “amicable.”)

So what’s the real story?

We spoke to a host of industry insiders, who each asked anonymity, saying they didn’t want to jeopardize their relationships with many of the players cited below. They offer an intriguing account of the recent behind-the-scenes maneuvers in Prince’s topsy-turvy career. Here are some of the key questions people in the industry are asking--with answers culled from our interviews.

Question: Why did Prince hire a film director to manage his career?

Answer: The move doesn’t make sense--unless you’re planning to spend the next several years making a movie. According to several sources in the Hollywood community, Prince and Magnoli are planning a musical film, which, though it would not be a sequel to “Purple Rain,” would aim for a broad youth audience and generate a commercial sound track. “If Prince is making a movie, he’s not going to be on the road, so why does he need a heavy-hitter?” said one manager. “In fact, it makes a lot of sense to kill two birds with one stone--let your manager be your film director!”

Q: Is Prince in financial trouble?

A: It depends who you ask. According to several key attorneys and managers--yes. They pointed to Prince’s lavish Paisley Park studio complex outside Minneapolis, which reportedly cost $8 million to $10 million to build--and more to operate. They point to his lengthy 1988 tours, which by most accounts lost huge sums of money. They also point to the lack of income from his Paisley Park custom record label, which has released a string of commercial failures (including forgettable albums from the Family, Three O’Clock and Dale Bozzio). “He has severe money problems right now,” said one record company exec. “He spends and spends, but he’s not making anywhere near the money he used to. I’ve heard estimates of his overhead that run more than $500,000 a month.”

Not everyone agrees. “His individual companies could have financial trouble, but it’s hard to image Prince having personal money woes,” said one manager. “He has a publishing company which owns all his songs, which must be worth at least $15 to $25 million. So don’t expect him to go broke.”

Q: Prince’s new law firm is Ziffren, Brittenham and Branca. But while John Branca is one of the record industry’s top lawyers, it’s his partner, Skip Brittenham, an attorney with influential film and TV clients (including Magnoli) who’s actually handling Prince. Why?

A: Insiders say Branca, whose best-known client is Michael Jackson, wants to keep his distance--at least officially--from Prince. “John’s been on the phone telling everyone he wasn’t involved in this signing,” said one L.A.-based manager. “And even if he cleared this with Michael Jackson beforehand, he obviously doesn’t want Michael becoming jealous of any time he might be devoting to Prince’s career.” Another possible reason for the legal move: Branca’s firm has strong ties with Prince’s record company, representing a host of Warner artists, including George Harrison, David Lee Roth, Fleetwood Mac, Peter Cetera and Los Lobos.

A question now being debated in industry corridors: Is it a conflict of interest for the same law firm to represent both an artist and his manager? If Prince were to have a falling-out with Magnoli, which side would the firm take? The loser in the legal shake-up was Lee Phillips, Prince’s longtime attorney and a respected industry power broker. According to several sources who spoke with Phillips and members of his law firm, Phillips was so stunned by the departure that he wrote Prince a lengthy note, which prompted a conciliatory phone call from the reclusive pop star.

Q: What do these career moves say about Prince’s future?

A: Most industry experts say Prince could easily bounce back, if the obsessively shy performer can make contact with the outside world. “His greatest gift--and his greatest curse--is how incredibly prolific he is,” said one veteran manager. “Even too much lobster will kill you. And he’s given the public too many albums--more than they can digest--so he’s lost touch with much of his audience. I saw him at a New Year’s Eve party and I got the sense that he was really frightened--and very alone. He’s this wonderfully gifted, very child-like character. But now he’s hit 30. And you can’t be Tinker Bell all your life. You’ve got to grow up. And maybe that’s what he’s going through now.”