If an artist claiming he was duped out of a fortune by one or more trusted advisors isn't the oldest story in the world, it is one of them. And it is so common as to be a cliche: the "creative" personality focused on translating impulse into reality, the attentive enablers handling business and day-to-day affairs - all is well until someone gets a little greedy, maybe feels a little unappreciated, the delicate equilibrium is broken, money is missing, tears are shed, lawsuits fly.
Yesterday, Nine Inch Nails maestro Trent Reznor's civil trial against his former best friend and manager John Malm began in U.S. District Court in New York. Reznor claims he lost up to $10 million to his former associates due to fraud and breach of fiduciary duties.
Reznor said in court that he was alarmed to find out in 2003 that he had only $400,000 in cash after earning millions over the previous 15 years. The NIN star's central claim is that Malm tricked him into signing a contract that allowed the manager to collect 20 percent of Reznor's gross, rather than net, earnings - net being the industry standard.
"It was not pleasant discovering you have a 10th as much as you've been told you have," Reznor said. "John was the business guy, and I was the guy working for nothing in the studio."
Reznor also admitted that he spent much of the '90s in a drug and alcohol-induced haze and that he ignored his finances and sometimes signed documents without reading or understanding them. It was only after rehab several years ago that Reznor said he began to comprehend his situation.
Malm's lawyer Alan Hirth countered that his client worked for free for years and hid nothing from the artist. "Of the millions upon millions upon millions that Trent Reznor and Nine Inch Nails made, the vast majority went into his [Reznor's] pocket."
NIN's comeback album, With Teeth, opened resoundingly at #1 on last week's Billboard album sales chart, with first-week sales of more than 272,000 copies.
In an interview that now fairly screams of irony, I discussed business affairs with the Cleveland-based Malm in '93 for Networking In the Music Industry:
- EO - How have your management duties changed with the success of NIN?
JM - Early on, there were a lot of concerns that we don't have anymore; such as finding a record deal, getting a publishing deal, finding a booking agent, finding a lawyer and an accountant, and hiring our road personnel for a touring situation. Those days were difficult, but not as intricate as they are now. The first thing was to get Trent a record deal; which we did. The wrong deal, but a record deal nevertheless.
Article comments
1 - Matt Wardlaw
Eric,
Fantastic stuff - hopefully one of these days I will get my hands on a copy of your book!! It's long overdue!
2 - Jaime Nichols
Thank you for this excellent stuff. What a mess.
3 - Eric Olsen
thanks guys! I'm amazed this isn't a bigger deal in Cleveland. I guess it would be, BUT THE TRIAL'S IN NYC!
4 - Aaron
Awesome Eric!
I remember listening to you on Rock 107 with your Cool Tunes program. I would stay up until the show ended and be dog-tired the next day for school. Cool Tunes was the major window in my life that introduced me to a wealth of music I would never have discovered on my own. Heck, I still think I have a few cassette tapes somewhere of your program. Let me just say "thank you". I hope your name continues to be associated with all things music in the years to come.
5 - Eric Olsen
gosh, thanks Aaron, I NEVER hear from old listeners here - you may be the first! You made my week with that bit of kindness
6 - lol
wow, malm is such a rip-off, good job in trying to break nin up dildo!!! u should be lucky that trent has made u money, dumbass!!!!
7 - Howler
I hope Trent cleans the floor with this guy, but it's too bad he's gotten himself into this position. Sometimes justice and the law don't see eye to eye.
8 - Eric Olsen
good point: trusting the wrong person doesn't always have a legal remedy
9 - nic
i wanna know the outcome!
10 - JW
Its always the best friend that stabs you in the back....Ceaser,Gotti,Malm.
Alas, its a damn shame that TVT has been so shady too....who still own the rights to PHM and a few other NIN releases. Interesting stuff.....
11 - Jim
Hey Eric. I have something about American Idol that I think you might be intersted in. I'd really like to tell you about it. I also think you can use it. I don't want to say it here in the blog. Can you give me the benifit of the doubt and email me and I will fill you in. Keep in mind I need a response immediately. If you can't get my email out of this form, just say so here in the blog.
12 - kate
YAY 4 Trent!!!! Im so happy he is back,I wish him the best in life!! GO TRENT!
13 - Eric Olsen
yes, Jim, let me know - I sent you an email
14 - Mark
It's a shame that things went sour between these guys. Who knows what happened?? It sounds though that they were really tight as friends for many years. In the notes to PHM Reznor thanks Malm as always "going above and beyond the call of duty". Hopefully they can reconcile after all the legal stufff gets cleared.
15 - Eric Olsen
it is a shame, and stranger things have happened, but I wouldn't count on it
16 - brian
john malm is not the bad guy, trent is a self admited drug user and you can't trust a scumbag like him!!!
17 - Eric Olsen
for whatever reason, the court sided with Trent and granted him a substantial award
18 - Paris
My wife was late getting home, she's a woman so get use to it. I called the police and filed a missing person report and waited. We had discused her choice in NIN's, she bought all the CD's joined fan clubs,went to concers even if she already seen the shows.
A lot of police came by later and said they found her around 9:00 that moring, the cops told my brother that she was found in the Gulf wearing her wedding dress and hills she wore for our wedding.
Is NIN to blame ?...No.. Is NIN's a facture ?..
..Yes..She had her walkman on with NIN's CD plaaying.
Think about it
Paris
19 - Kelly
Trent is not the bad guy here Brian, that John Malm guy is!
20 - Rachel
I fully support Trent all the way, i could fucking kill that John Malm cunt!