The End of One Fantasy

An Abrupt and Crushing Blow

On May 29, 1973, the day after Memorial Day weekend, Clive Davis was summoned to a meeting with CBS President Arthur Taylor, only to be informed, without prior warning or discussion, that he was being fired. The meeting lasted mere minutes. Adding insult to injury, he was served with a civil complaint filed by CBS, accusing him of $94,000 in expense-account violations during his tenure at Columbia Records. Security guards escorted Clive to his office to collect his belongings and ensured he left the building immediately.

Clive’s shock and disbelief were overwhelming. His initial thoughts drifted to his young cousin Stephan, who had recently passed away from cancer. The tragedy put Clive’s personal loss into perspective, helping him maintain some composure. Nevertheless, the experience felt akin to a death—losing not just a job but the identity and passion he had built around it. He returned home to his family, where the surreal atmosphere felt like a shiva for the life he had lost.

A Media Storm of Speculation and Scandal

News of Clive’s firing spread rapidly, with reporters and commentators speculating on the reasons behind it. While some pointed to internal CBS politics, others insinuated far darker motives, linking the firing to alleged corruption in the music industry. Stories implied that the stated reason—expense-account fraud—was merely a cover for payola and drug-related scandals. The media frenzy only intensified the emotional toll on Clive and his family.

Adding to the scandalous narrative was CBS’s earlier investigation into Dave Wynshaw, Columbia’s head of artist relations. Wynshaw had been involved in fraudulent activities, including forged invoices and kickbacks. Though Wynshaw implicated no one else, including Clive, in his criminal behavior, his cooperation with federal prosecutors led to broader accusations against the music industry, which tainted Clive by association.

Missteps and Misjudgments

Clive’s relationship with Wynshaw was professional but ultimately problematic. As Columbia’s demands grew, Clive had delegated many logistical tasks, including personal matters, to Wynshaw, trusting his efficiency. Unfortunately, Wynshaw had exploited this trust to engage in fraudulent practices. Two specific incidents—the renovation of Clive’s apartment and his son Fred’s bar mitzvah—were cited in CBS’s civil suit against Clive.

Apartment Renovation: A $75,000 bill for kitchen work that Clive had expected to cost $10,000 shocked him. Wynshaw assured him it was an error and would resolve it.
Bar Mitzvah: Wynshaw handled the arrangements with the Plaza Hotel, delaying the bill and obscuring the costs. Despite widespread media claims, Clive never billed CBS for the event.

Wynshaw’s actions, combined with mounting pressures at CBS, created an environment ripe for scapegoating. With federal investigators probing the music industry and CBS facing potential consequences from the FCC, Clive became the sacrificial figure.

The Painful Fallout

Clive’s firing marked the start of a prolonged and painful chapter. Columbia systematically erased his legacy, removing his name, photos, and memorabilia from company offices. Even artists were discouraged from acknowledging him publicly. Former mentors, such as Goddard Lieberson, distanced themselves, with Lieberson downplaying Clive’s contributions in media interviews.

CBS and the broader music industry’s treatment of Clive during this period was deeply isolating. Many former colleagues, fearing repercussions, avoided associating with him. A few loyal friends, like Dick Asher, Walter Yetnikoff, and Elliot Goldman, remained supportive despite warnings from CBS executives.

A Kafkaesque Legal Ordeal

The government’s investigation into payola and drug-related corruption in the music industry yielded no substantive evidence against Clive or CBS. Nevertheless, prosecutors lumped him into a broader indictment with minor figures in the industry, creating a false equivalence. Clive faced charges related to $8,800 in disputed travel expenses, far removed from the sensational allegations of payola and drugs that dominated headlines.

In May 1976, after three years of legal battles, Clive pled guilty to failing to pay $2,700 in taxes on the disputed expenses. Five of the six charges against him were dropped. The judge overseeing his sentencing, Thomas P. Griesa, publicly criticized the media’s treatment of Clive, calling it “appalling in the innuendo and direct attempts to connect Mr. Davis with crimes with which he was never indicted.”

Despite the resolution, the damage to Clive’s reputation lingered. Media outlets that had sensationalized his case largely ignored his exoneration, perpetuating a narrative of guilt by association.

Resilience and Redemption

In the face of humiliation, Clive focused on rebuilding his life. He launched Arista Records, channeling his energy into creating a new legacy. CBS, perhaps recognizing its error, eventually provided financial support for Arista, offering $1 million for future mail-order and record-club rights. This act signaled a tacit acknowledgment of Clive’s value and vindication of his integrity.

Clive also sought to restore his legal credentials, eventually retaking and passing the New York State bar exam in the mid-1990s, decades after his initial disbarment. His reinstatement was a personal triumph, symbolizing his resilience and commitment to integrity.

A Legacy Marred but Not Defined by Scandal

Despite the ordeal, Clive’s contributions to the music industry remained undeniable. His leadership at Columbia transformed the label into a powerhouse, and his post-Columbia achievements at Arista cemented his status as one of the most influential executives in music history. While the false narratives around his firing still surface occasionally, Clive’s career stands as a testament to his talent, vision, and perseverance. As Judge Griesa noted, the suffering Clive endured was grievous, but his dignity and ethics ultimately shone through the darkest period of his life.

Here are the facts from the narrative for The End of One Fantasy:

Clive Davis was fired from CBS on May 29, 1973, after a two-minute meeting with CBS President Arthur Taylor and two lawyers. He was given no opportunity to discuss or respond to the decision.
CBS accused Clive of $94,000 in expense-account violations in a civil complaint served immediately after his dismissal.
Clive was escorted by two CBS security guards to his office, where he collected personal items, and was then escorted out of the building.
The media quickly speculated on Clive’s firing, with stories implying links to organized crime, drugs, and payola despite no evidence or charges connecting him to such activities.
The firing followed a federal investigation into Dave Wynshaw, Columbia’s Head of Artist Relations, who was found guilty of fraudulent invoicing and forging documents, some of which indirectly implicated Clive in unrelated matters.
Wynshaw arranged fraudulent kickbacks on personal projects, including a $75,000 kitchen renovation and Clive’s son’s bar mitzvah at the Plaza Hotel. Clive maintained he never authorized or intended CBS to pay for these expenses.
CBS’s firing of Clive was widely seen as a move to distance the corporation from potential scandal and appease federal regulators concerned about its broadcast licenses.
By 1975, five of the six charges against Clive were dropped. He pled guilty to failing to report $2,700 in taxes on $8,800 of contested travel expenses and received one day of unsupervised probation and a $10,000 fine.
Judge Thomas P. Griesa publicly criticized the media’s treatment of Clive, describing the “grievous suffering” caused by unfounded allegations and condemning the press for its sensationalism.
After Clive’s firing, Columbia erased his contributions: His office was dismantled, and memorabilia and awards were removed; Artists were discouraged from acknowledging him in dedications; Footage of events like the Ahmanson Theatre concerts, which Clive emceed, was edited to exclude him.
Clive’s firing occurred after Columbia had achieved record success under his leadership, with profits growing from $5 million in 1967 to $50 million by 1972.
Despite widespread speculation, Clive was exonerated of all charges related to payola or drug activity, and CBS later expressed support for him by investing $1 million in his new label, Arista Records.
Clive passed the New York State Bar Exam in 1996, scoring in the top 3-4 percent, to reinstate his law license despite already running a thriving record label.
Clive’s resilience and subsequent success with Arista Records demonstrated his ability to overcome the scandal, rebuilding his career and legacy in the music industry.

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