CBS’ Battle of the Bosses: Springsteen vs. Yetnikoff

The superstars are starting to take sides at CBS Records.

Label chief Walter Yetnikoff insists that everything is fine between him and parent company Sony Inc., pointing to his new three-year contract with Sony as a vote of confidence.

But Yetnikoff’s enemies, claiming his relations with major CBS acts have deteriorated, continue to say that the new contract is in fact a graceful way for Sony to ease the powerful executive out of office.

They point to last week’s industry bombshell from Jon Landau, Bruce Springsteen’s normally press-shy manager. Landau issued a formal statement acknowledging a two-year rift between Yetnikoff and the Springsteen camp, implying that the rock star might end his nearly 20-year association with CBS.

This comes on the heels of reports that Michael Jackson--another CBS artist who once had close relations with Yetnikoff--is in a heated renegotiation battle that could also result in his leaving the label.

Now another CBS superstar, George Michael, has been drawn into the fray--apparently on Yetnikoff’s side.

Industry insiders are claiming that Yetnikoff persuaded Michael and his manager Rob Kahane to drop lawyer Allan Grubman, an industry powerhouse who--not coincidentally--is one of the key lawyers now representing Jackson in his CBS renegotiations.

Is Yetnikoff so angry with Grubman because of his role in the ticklish Jackson drama that he would get a key CBS act to fire him--or keep their distance from him-- as show of power? It certainly suggests a low ebb in the sometimes volatile relationship between Yetnikoff and Grubman, once one of Yetnikoff’s closest confidantes.

Yetnikoff seemed eager to discuss the turmoil.

“The policy of this company is that an artist has the absolute right to choose his own attorney--and apparently George Michael has made that choice,” Yetnikoff told Pop Eye. “Allan and I have had our feuds over the years--our ups and downs--and we’re having a little down period. But I did not tell George to get rid of him.”

Yetnikoff, noted for his mischievous asides, added, teasingly, “When Billy Joel fired Allan, did I do that too?”

Grubman disputed this account, saying he couldn’t be “fired” because he was not George Michael’s lawyer, though he acknowledges handling a successful renegotiation of Michael’s CBS contract several years ago. Rob Kahane confirmed this, saying: “Allan helped renegotiate a brilliant deal for George Michael four years ago, but George’s attorney has always been British attorney Tony Russell.”

As for reports that he and Yetnikoff were feuding, Grubman responded: “This is all being blown out of proportion. Business is going on as usual. In fact, I’m in the middle of several major renegotiations at CBS, which I expect will be successfully concluded.”

Still, the industry was abuzz over Landau’s blunt statement outlining his differences with Yetnikoff. Part of Yetnikoff’s strength at CBS--and even more so at Sony--was his close relations with the label’s top artists. So it seemed startling to see such a tart statement from a respected heavyweight like Landau, who rarely gives interviews or discusses any of Springsteen’s artistic or business affairs.

In his remarks, Landau said that he was “disturbed” reading reports that CBS was “weaning” itself from Springsteen and “artists who have contributed so much to its reputation, prestige and value.” Then, as if to make sure Yetnikoff got the message, Landau raised the issue of Springsteen leaving CBS for another label, saying he needed to determine “where we fit into CBS’ future plans and where they fit into ours.”

Yetnikoff said that Landau’s remarks came as a “total surprise” to him. “Perhaps I had misgauged the situation, but I had no idea there was any rift between us. As for Michael Jackson, I think our relationship is as good as ever. (Michael Jackson lawyer) Bert Fields told me my relationship with Michael--and the company’s relationship with Michael--was fine, so I don’t anticipate any problems.”

So who is spreading all these rumors about Yetnikoff’s fading star?

Yetnikoff pointed a finger at Geffen Records chief David Geffen, who reportedly has been feuding with Yetnikoff in recent months. “I’ve read that Geffen may be the nub of a lot of these reports,” he said. “It’s certainly a possibility. Let me put it this way--the thought has certainly occurred to me.”

Geffen’s office said that he was vacationing in the Mediterranean and unavailable for comment.

As for his new Sony contract, Yetnikoff insisted it is a major endorsement. “They wanted me for five years--it was my choice to do a three-year deal. Sony even issued a statement showing their support and saying I can stay as long as I want, which isn’t something they normally do. If they’re easing me out, it’s sure costing them a lot of money!”