Lyor Cohen

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Lyor Cohen

Lyor Cohen
Born October 3, 1959 (1959-10-03) (age 48)
New York City
Nationality American
Occupation CEO

Lyor Cohen (Hebrew: ליאור כהן‎; born October 3, 1959 in New York City) is the North American Chairman and CEO of Recorded Music for Warner Music Group (WMG). He has been a pioneer in the development of hip hop music and influential in the development of hip hop music acts, including Beastie Boys, Foxy Brown, LL Cool J, Jason Mizell, Nas, Run-D.M.C. and others.

In addition, he has done various promotional work on behalf of rock musician Jon Bon Jovi and the heavy metal band Slayer, pop music singer Mariah Carey and hip hop artists Sean Combs and Jay-Z.

Cohen joined the company shortly after Time Warner's sale of WMG to an investor group led by Edgar Bronfman, Jr.. Prior to his current role with Warner Music, he worked with The Island Def Jam Music Group, where he led the growth of its roster of artists and record labels, including Def Jam Recordings, Island Records, Roc-A-Fella Records, and Lost Highway Records. At WMG, in 2007, his division brought the company its highest U.S. album share in a decade and was credited with delivering the "most improved performance of a major music company" by the New York Post. [1]

According to The New York Times, Cohen devised the now-standard record industry strategy of offering new releases at reduced price for the first week to boost sales on new albums.[2]

Contents

[edit] Los Angeles and University of Miami

Cohen is one of two sons of Israeli immigrants and the grandson of an Israeli Army general. Although born in New York City, he spent little time there until later in life when he returned to Manhattan for good in his mid-20s to work with Def Jam Recordings' Russell Simmons. Cohen was raised in the affluent Los Angeles community of Los Feliz after divorce led his mother to relocate there. He graduated from John Marshall High School in Los Angeles and then the University of Miami's School of Business, in Coral Gables, Florida, where he majored in business.

Cohen has two half-brothers on his mother's side who have worked for Lyor at some point; both are also record label executives.

[edit] Hip Hop Music Career

[edit] Run-D.M.C.

Cohen entered the hip hop music business in the mid-1980s after booking a performance by seminal rappers Run-D.M.C. at a club Cohen was running in Los Angeles. He soon became the group's road manager, sharing a room with MC Darryl McDaniels (aka DMC) on the road. He began working in New York City for Def Jam's co-founder, Russell Simmons, in the early part of 1985, spearheading Rush Artist Management, the management division of Simmons' Def Jam/Rush operations and bringing a semblance of order to the often chaotic office shared by both the label and management.

Meanwhile, Cohen continued to act as Run-D.M.C.'s day-to-day and road and tour manager. He managed such tours as the 1986 Raising Hell Tour, (featuring Run-D.M.C., Whodini, LL Cool J, the Beastie Boys and various guests such as Doug E. Fresh) and the 1988 Together Forever Tour (featuring Run-D.M.C., the Beastie Boys and occasional guests such as Public Enemy).

[edit] Def Jam Records

Cohen's first real public impact came with his creation of Rush Associated Labels (or 'RAL') in 1990. The label mostly served as an outlet for side-projects of Rush-managed acts like Jason Mizell's Afros, but it also served a label for 'baby bands' - acts that needed more time to develop than Def Jam would be able to afford them - to organically grow at their own pace.

Over the years Cohen's influence grew, to the point where he personally earned $100 million from the sale of Def Jam Records to the Universal Music Group (UMG) in 1999. He was then made head of a key part of UMG subsidiary, Island Def Jam, where he led the growth of its roster of artists and record labels, including Def Jam, Island Records, Roc-A-Fella, Lost Highway, The Inc, American, and Def Soul (including Def Soul Classics and Roadrunner records) whose releases earned almost $700 million a year.

[edit] Warner Music Group

Cohen left IDJ/UMG in January 2004 for a position with the Edgar Bronfman, Jr. investor group-financed Warner Music Group, which was subsequently spun off from Time Warner. Joining Cohen at Warner are his former co-workers at Island Def Jam, Kevin Liles and Julie Greenwald, as well as a trio of older industry figures including Elektra founder Jac Holzman, Sire Records' Seymour Stein, and Def Jam co-founder Rick Rubin.

[edit] Controversy

[edit] Murder Inc. Records Raid

In 2001, Cohen was given the nickname Lansky (after the notorious Jewish gangster Meyer Lansky) by Irv Gotti in recognition for his partnership and place on the board of directors when the two went into business together forming Murder Inc. Records (named after the original Murder Inc.).[3][4] Cohen's Island Def Jam label provided Gotti $2,000,000 in 'seed' money to start operations and the label with office space in his Island Def Jam Manhattan headquarters.[3] This later came under the scrutiny of federal authorities when Murder Inc. Records at Island Def Jam was raided by a joint task force of the NYPD and the FBI as part of a federal probe of label founder Irv Gotti's ties to drug lord Kenneth "Supreme" McGriff, alleged drug trafficking, money laundering, and gang activities.[5] Of particular interest to authorities was an Island Def Jam payment of $500,000 to a company fronted by McGriff called Picture Perfect Entertainment, ostensibly for the soundtrack (that was never delivered) to McGriff's film adaptation of Donald Goines "Crime Partners" which he had optioned.[6]

Cohen was eventually absolved of any involvement in the scandal, even after he claimed under oath that he couldn’t identify his position with Murder Inc. Records. When asked if he sat with Gotti on the executive board of Murder Inc., Cohen replied “I’m not sure.”[3] Gotti, also since absolved of allegations,[7] declined Cohen's offer to join him at Warner Music Group.[8]

[edit] The TVT Records Lawsuit

In 2002, Cohen was personally sued for fraud, tortious interference, breach of contract and copyright infringement by TVT Records as part of a larger action against Island Def Jam Music Group and Universal Music Group.[9] The defendants were initially ordered to pay TVT $132 million in compensatory and punitive damages, with $56 million due personally from Cohen, but on appeal that figure was reduced to $53 million, with $3 million due personally from Cohen.[3] The U.S. District Court Judge who reduced the damages, Victor Marrero, commented that the defendants were "morally reprehensible" and noted "inconsistencies" in Cohen's testimony.[3] However, in 2005 the jury's decision against Cohen and Def Jam was overturned by a federal appeals court panel of the Second Circuit Court of Appeals, which ruled that the allegations by TVT "lacked 'legally sufficient' evidence".[10] While TVT lawyers announced intentions to pursue the matter further, Cohen's lawyer noted that "In reversing the finding of liability, fraud and the related damages, the court has specifically found that there was no credible evidence to support the outrageous claims against Mr. Cohen".[10]

During the course of the appeals, additional controversy arose with the sale of Phat Farm clothing company. Cohen was partners with Russell Simmons with a 16.6% stake in Phat Farm, which he had valued at $5.5 million in a financial statement during the TVT lawsuit.[11] When the company sold for $140 million,[12] Cohen reportedly received more than $20 million for his share, prompting allegations by TVT lawyers that he had intentionally misrepresented his net worth to reduce his damages owed.[11] Simmons testified at deposition on Cohen's behalf that Cohen was not aware at the time he assessed his financial worth of the potential sale.[12]

TVT was awarded $126,720 for a breach of contract claim that IDMG and Cohen did not appeal.[10]

[edit] P. Diddy

In 2002, Sean "P Diddy" Combs accused Cohen of "attempting to steal" best-selling R&B artists 112 from his Bad Boy Records label, stating that he was "shocked" by such a move from "someone who I considered a close friend for 15 years".[13] In 2003, Combs and Cohen announced a joint venture to handle 112 and Foxy Brown.[14] At that time, Combs said that his personal relationship with Cohen mattered more "than a minor business dispute".[14] In 2005, Combs and Cohen entered into a working relationship at Warner Music Group.[15]

[edit] References

  1. ^ Garrity, Brian. (January 20, 2008) [http://www.nypost.com/seven/01202008/business/musical_marvel_429734.htm?page=0. Retrieved 23-01-08.
  2. ^ Holloway, Lynette. (May 10, 2003) Record chief who lost case expected to keep his tempo The New York Times. Retrieved 23-01-08.
  3. ^ a b c d e Hays, Tom. (December 3, 2003) Lawsuit is glimpse into world of rap mogul. music.yahoo.com. Retrieved 23-01-08.
  4. ^ Friedman, Roger. (November 29, 2004) What's drugs (got to do with it)? Fox News. Retieved 23-01-08.
  5. ^ Oh, Minya. ([January 16]] 2003) Drugs, friends & allegations: inside the Murder Inc. raid MTV. Retrieved 23-01-08.
  6. ^ Wilson, Michael and Lynette Holloway. (January 26, 2003). Inquiry into rap label asks if 'Gangsta' is more than genre. New York Times. Retrieved 23-01-08.
  7. ^ Rashbaum, William K. and Matthew Sweeney. (December 3, 2005). Hip-hop producers get acquittal, then hugs, from jurors. The New York Times. Retrieved 23-01-08.
  8. ^ Leeds, Jeff. (August 22, 2006). After legal woes, Irv Gotti ready to try again with old partner. The New York Times. Retrieved 23-01-08.
  9. ^ Reid, Shaheem. (March 25, 2003). Def Jam, Lyor Cohen guilty of fraud. MTV. Retrieved 23-01-08.
  10. ^ a b c Leeds, Jeff. (June 15, 2005). Rap label is spared millions after appeal on fraud case. The New York Times. Retrieved 23-01-08.
  11. ^ a b Garrity, Brian. (April 3, 2004) "How Phat this cat?" Billboard Magazine.
  12. ^ a b Leeds, Jeff. (May 16, 2005) Don't believe the hype. A hip-hop mogul says it's propaganda. New York Times. Retrieved 23-01-08.
  13. ^ Reid, Shaheem. (February 28, 2002) P. Diddy keeps 112 from leaving Bad Boy - for now MTV Retrieved 23-01-08.
  14. ^ a b Reid, Shaheem. (February 20 2003]]) P. Diddy, Lyor Cohen call truce. MTV. Retrieved 23-01-08.
  15. ^ Warner Music Group. (2005) Sean "P.Diddy" Combs and Bad Boy Entertainment form joint venture with Warner Music Group. WMG.com Retrieved 23-01-08.

[edit] Further reading

[edit] External links