EMI HIERARCHY STRIKE SPARKS

The journo, citing sources both inside and in close proximity to the company, reports that the relationship between Elio Leoni-Sceti and Guy Hands is so strained that EMI staffers are whispering Leoni-Sceti could be gone before the year's out. They told the reporter the two friends and colleagues had a falling-out during contract renegotiations with newly named COO Ronn Werre, after Hands directed Leoni-Sceti to make Werre a "take-it-or-leave-it" offer, which was rebuffed, at which Werre got his job offer from Sony Music.

“That so surprised and incensed Hands that sources said he told Leoni-Sceti to do whatever he had to do to get Werre back,” Lauria writes. “Sources said Leoni-Sceti chafed at the directive, both because he was acting like a good foot soldier in carrying out Hands' initial ill-conceived directive and also because he didn't want to go back to a supposed underling with hat-in-hand.” Said a source close to EMI: "I'd be surprised if Elio continues to put up with the shit."

The in-house battle also claimed EMI digital guru Douglas Merrill, though sources said he had little support within the label anyway, while Sony slapped EMI and Werre with a breach-of-contract lawsuit.

But Terra Firma’s Andrew Dowler dismissed the notion that there was friction between Leoni-Sceti and Hands. "Terra Firma thinks Elio is doing a tremendous, brilliant job and he has the firm's full support," said Dowler. Added Leoni-Sceti, "Guy is a great boss and has been and continues to be a great friend. He's very supportive."

EMI sources also described Werre to Lauria as an "impressive," "ambitious," "get things done" sort of executive who has a strong commercial orientation. “In other words, just the type of guy EMI needs to find hits and re-establish artist relationships that were frayed after Hands and Leoni-Sceti, neither of whom have any music industry experience, took over the label,” the reporter noted.

"Ronn would very much like the CEO job," the source told Lauria, supplying the reporter with his payoff, as he concluded his story with, “Werre is certainly capable of ‘making a power move to get rid of [Elio],’ said a source who works with EMI.”