Exploring New Opportunities

Searching for a New Beginning

Exploring Options After Columbia

After being dismissed from Columbia Records amid investigations and intense media scrutiny, Clive Davis faced the challenge of rebuilding his career in the music industry. Public sentiment, however, remained strongly in his favor. Less than a month after his firing, The Wall Street Journal featured a story headlined, “Everybody Hopes Clive Forms His Own Company,” quoting a prominent talent manager who stated that many artists and industry professionals respected Clive’s abilities and would work with him if he launched a new venture.

 

Despite the encouraging public support, the shadow of the ongoing investigation made it difficult to reenter the industry immediately. With legal expenses mounting and his family’s financial stability in mind, Clive explored other opportunities, including writing a book, consulting, and considering management roles.

Writing Clive: Inside the Record Business

Amid the tumult, Clive received offers to write about his experiences. William Morrow editor, Jim Landis worked with him to develop the project, agreeing to steer clear of the ongoing investigations. Clive partnered with Time magazine writer, Jim Willwerth, whose experience and style aligned well with the narrative vision.


Over several months, Clive and Willwerth collaborated from a rented suite at the Hotel Ruxton. The sessions were therapeutic, allowing Clive to reflect on his career highlights and reaffirm his contributions to the music industry. The resulting book, “Clive: Inside the Record Business,” was published in the fall of 1974. It showcased his passion for music and the transformative role he played at Columbia Records. Prominent endorsements included Elton John, who remarked, “Clive was Columbia,” and Lou Reed, who described Clive as a “knowledgeable friend” whose story demanded a sequel.

Considering Management and Joint Ventures

During this period, Clive explored management opportunities, with artists like Bob Dylan, Neil Diamond, and Sly Stone floated as potential clients. While flattered by the interest, he decided against management due to the personal and highly demanding nature of such relationships.

 

A more appealing opportunity emerged with Chris Blackwell of Island Records. Blackwell proposed a 50/50 joint venture, giving Clive equity in the company—a significant offer given his frustrations over equity at Columbia. The deal was nearly finalized when unforeseen tax complications related to U.K. laws derailed the partnership.

 

Soon after, Clive was approached by Freddie Gershon on behalf of the Robert Stigwood Organisation (RSO). Stigwood, renowned for managing Cream, discovering the Bee Gees, and producing Jesus Christ Superstar, saw Clive as a perfect leader for his record division. Stigwood agreed to a contract similar to the one Clive had negotiated with Blackwell, and the deal seemed imminent pending final approvals.

A Devastating Setback

On the Saturday before the deal’s anticipated Monday closing, Clive attended a party for James Taylor and Carly Simon. It was his first public industry appearance since leaving Columbia. The response was overwhelmingly positive, with artists and executives expressing genuine support. Clive felt reaffirmed in his standing within the music community.

However, on Monday morning, Gershon called with crushing news: Atlantic Records’ Ahmet Ertegun, whose approval was required to release Stigwood from his existing contract, had reversed his stance and refused. The deal fell apart. Clive speculated that Ahmet, having witnessed the strong relationships Clive had cultivated at the party, viewed a Stigwood-Clive partnership as too formidable and chose to block it as a business decision.

Maintaining Professionalism Amid Disappointment

Despite the setback, Clive maintained a professional relationship with Ertegun. He respected the decision as a strategic business move rather than a personal slight. Over the years, their mutual respect endured, with Ertegun frequently attending Clive’s Grammy weekend events.

Clive remained resolute, understanding that his journey in the music industry was far from over. These challenges and near-misses only reinforced his determination to find the right opportunity to reestablish himself.

Facts from the Narrative

  1. Industry Support Post-Columbia: A Wall Street Journal article in 1973 highlighted widespread industry respect for Clive, with managers and artists expressing hope that he would form his own company.

  2. Book Release: Clive wrote Clive: Inside the Record Business with co-author Jim Willwerth. The book, published in 1974, offered an accurate portrayal of his career and received endorsements from artists like Elton John and Lou Reed.

  3. Management Opportunities: Clive considered management roles for Bob Dylan, Neil Diamond, and Sly Stone but ultimately decided against it due to the high-stakes personal nature of artist management.

  4. Island Records Joint Venture: Clive negotiated a 50/50 equity partnership with Chris Blackwell of Island Records. The deal was finalized but collapsed due to U.K. tax complications.

  5. Stigwood Opportunity: The Robert Stigwood Organisation sought Clive to run its record division. The deal was set but was blocked by Ahmet Ertegun, who refused to release Stigwood from his WEA contract.

  6. Industry Affirmation: At a party for James Taylor and Carly Simon, Clive received overwhelming support from artists and executives, reaffirming his reputation in the music community.

  7. Professional Relationship with Ahmet Ertegun: Despite Ertegun blocking the Stigwood deal, Clive maintained a friendly and professional relationship, acknowledging it as a strategic decision rather than a personal attack.

 

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