EMI Group to Fold Priority Records Into Capitol Division

EMI Group is planning to fold Priority Records into its Capitol division just three years after paying $200 million for the once-booming rap label, sources said.

The cost-cutting move could drive Priority founder Bryan Turner from his company, which has championed music by such rap pioneers as N.W.A., Snoop Dogg and Master P.

Turner, who sold the Los Angeles label to EMI in two transactions, has almost two years left on his contract.

EMI and Turner could not be reached for comment.

The Priority move is the latest in a string of management difficulties for the struggling British music conglomerate, which was jilted twice in recent merger talks with competitors.

Last month, EMI decided to release Canadian rock act Custom from EMI’s Virgin label following a run-in between a band member and Nancy Berry, the controversial vice chairwoman of the company’s worldwide record division. Sources said the band’s lead singer consulted an attorney about filing a harassment claim against Virgin, alleging he received a series of threatening voice-mail messages from Berry.

Last week, pop star Mariah Carey canceled all promotional appearances for her upcoming Virgin CD after suffering a breakdown and checking herself into a New York medical facility. Carey, who also recently criticized Berry’s management style in a message posted on the singer’s Web site, signed an estimated $80-million deal with Virgin earlier this year.