German Court: Jail Time For Promoter Hoffmann

The Higher Regional Court in Mannheim, Germany, yesterday sentenced promoter Matthias Hoffmann to a jail term of five years and eight months. Hoffmann, 47, organizer of the 3 Tenors' concerts, was found guilty of 59 counts of fraud and tax evasion involving some $13.5 million. Hoffmann's lawyers had asked that he serve four years on the basis of having defrauded around $5.3 million; the prosecution sought a seven-year term.

The impresario, who has been in detention in Mannheim awaiting trial since July 1997, is likely to be released in 2001. The sentence comes exactly a year after Hoffmann's onetime partner and then rival Marcel Avram received a three-and-a-half year term for similar offenses (Bulletin, Dec. 24, 1997). It has emerged that Avram and another top-rank German promoter, Marek Lieberberg, gave evidence on Hoffmann's behalf during the trial.

Sources in the German live entertainment sector say that the industry will now lobby the government for reforms to the country's tax laws to clarify their treatment of international artists. A key point in the Hoffmann case is understood to have been whether the 3 Tenors should have been considered a group or solo artists.

--Wolfgang Spahr, Hamburg


Warner Italy To Revamp NFC Label Under Giuliano

Warner Music Italy has announced plans to restructure the Nuova Fonit Cetra (NFC) label, of which it acquired 90% from public service broadcaster RAI in the summer (Bulletin, Aug. 5). The new entity will be renamed Warner Fonit and will move from its current home in RAI's central Milan HQ to Warner Music's distribution offices in Segrate on the outskirts of Milan.

WEA Italy managing director Massimo Giuliano is appointed to the additional post of managing director of Warner Fonit, with CGD EastWest commercial director Romano Razzini appointed GM. All of Warner Music Italy's classical music releases, special projects, and music video activities will be handled by Warner Fonit, as well as NFC's extensive catalog of Italian classical, opera, and light pop music. Giuliano will also be appointed VP at Warner Music Italy on Jan. 1, to take on some of the duties of Warner Music Italy president and CGD EastWest MD Gerolamo Caccia Dominioni, who was last month appointed president of a new Warner Music Southern Europe region.

--Mark Dezzani, Sanremo, Italy


Enrique Iglesias Inks EMI International Co-Publishing Deal

EMI Music has entered into a global co-publishing deal with Enrique Iglesias. The singer co-wrote his No. 1 Latin hit "Esperanza," which falls under the deal, as does his Fonovisa album, "Cosas Del Amor."

Iglesias kicks off a 33-city U.S. tour Jan. 16 in Orlando, Fla.

--Irv Lichtman, N.Y.


Mushroom Imprint To Name A&R Executive

Australian indie Mushroom Records is expected to appoint Michael Parisi as its Melbourne-based A&R director of a new imprint, Majik Mushroom. Parisi resigned Monday as Australian artists A&R/marketing manager at Warner Music Australia after four years; while there, he signed platinum crossover acts the Superjesus and Regurgitator.

Mushroom last week hired Sydney-based Peter Karpin, former GM of A&R at Sony Music, to head the A&R department (Bulletin, Dec. 15). Mark Opitz, Mushroom A&R director for the last 18 months, is retained as a consultant and will work with Mushroom acts as a record producer.

--Christie Eliezer, Melbourne


Valley Media IPO Back On Track

Independent music and video wholesaler Valley Media has filed a registration for an initial public offering with the Securities and Exchange Commission. The number and price of shares will be determined at the time of the offering, with a proposed maximum offering of $46 million. Valley, which provides fulfillment for a number of Internet as well as traditional retailers, will use the proceeds from the IPO for repayment of debt and working capital. An offering planned by Valley for earlier this year was put on hold. Disappointing performances by several new entertainment stocks was a factor, according to sources.

In the six months to Sept. 26, Valley had a net loss of $1.33 million on net sales of $343.4 million; in the same period in 1997, it had net income of $168,000 on sales of $234.4 million.

--Carolyn Horwitz, N.Y.


Artist Developments

Celine Dion is set to appear for one show only at the site of Hong Kong's former Kai Tak airport on Jan. 25.

--Ann Tsang, Hong Kong


Former Temptation Barred From Using Group Name

A U.S. District Court judge in L.A. issued a permanent injunction Friday barring ex-Temptations member Dennis Edwards from performing publicly as "the Temptations" or under a stage name likely to be confused with that of the famed Motown group. Judge George H. King also ordered Edwards to pay $50,000 to Temptations member Otis Williams and the estate of late member Melvin Franklin. In September 1996, Williams and Franklin's estate filed a federal trademark infringement suit against Edwards; a preliminary injunction was granted against Edwards earlier this year (Bulletin, Jan. 16).

According to Howard King, the Temptations' attorney, a hearing is scheduled before Judge King today to enjoin three upcoming shows that allegedly have been advertised in violation of the injunction.

Edwards' attorney Glenn Forbis could not be reached for comment.

--Chris Morris, L.A.


New John Barry Album Goes 'Beyond' Soundtrack Music

London Records has set a Feb. 23 release date in the U.S. for composer John Barry's first album in 25 years that's not associated with a feature film. The album, "The Beyondness Of Things," contains 12 pop tone poems and was recorded at Abbey Road studios.

Winner of five Oscars and four Grammys, Barry has written the soundtrack music of some 100 films, including the James Bond series, "Midnight Cowboy," "Out Of Africa," and "Dances With Wolves." He also composed the melody for the Oscar-winning song "Born Free."

--Irv Lichtman, N.Y.


'1999' All Day Long At M2

Beginning at 12:01 a.m. on Jan. 1, 1999, M2 will play Prince's video for the song "1999" for 24 straight hours. "This song will be inescapable in the coming year, so we thought we could get our overplaying of the video out of the way early in 1999," says Matt Farber, GM of M2.

--Melinda Newman, L.A.


Concert, Interview On Brian Wilson Video

A live performance and discussion with Brian Wilson are captured on an upcoming home video. "Imagination," due Jan. 15 from Warner Reprise Video, features performance footage of the legendary Beach Boys singer/songwriter at the Norris Cultural Arts Center in St. Charles, Ill., backed by a band comprising Timothy B. Schmit of the Eagles, Bruce Johnston and Joe Thomas of the Beach Boys, Jim Peterik of Survivor, and Christopher Cross. There's also an interview of Wilson conducted by Sean Lennon, plus appearances by such notables as Eric Clapton, Stevie Wonder, Elvis Costello, and Glen Campbell.

The 60-minute "Imagination" will carry a list price of $19.98.


Morcheeba B-Sides Set Due In Spring

U.K. indie China Records is expecting to release a "beats and B-sides" version of British electronic trio Morcheeba's "Big Calm" album in the second quarter of 1999. The label, which has an international licensing deal with Warner Music International and a label deal with Sire Records Group in the U.S., says the album will consist of remixes and tracks taken from the band's singles. A similar U.K.-only limited edition was made from the band's first China outing, "Who Can You Trust?"

"Big Calm" has sold 750,000 copies worldwide, says China, with 200,000 sold in the U.K., 150,000 in the U.S., and 110,000 in Italy.

--Dominic Pride, London


BMG G/S/A On Web

Information on more than 16,000 titles available from BMG companies in the G/S/A region is now on the Internet. The move is intended to help customers ask for the right products at retail, says the company. Visitors to www.bmg.de can search by artist, album or song title, or catalog number.

--Dominic Pride, London