Arista Staffers Show Support For Davis

Arista president Clive Davis returned to his New York office from Europe yesterday following a week of intense speculation regarding his reportedly strained contract negotiations with Arista parent BMG Entertainment. According to sources, Davis was greeted with a champagne toast by the label's senior management team, as well as officers, directors, and department heads. Davis told his staffers that active discussions are going on between BMG and his representatives.

Addressing the succession plan that is said to include LaFace co-founder L.A. Reid, which BMG is believed to want implemented, Davis said it is wrong for anyone to tell him who his successor will be without any prior consultation.

-- Gail Mitchell, L.A.

Recording Executive Prepares for Meeting with BMG over His Future
By Phyllis Furman, Daily News, New York
Knight Ridder/Tribune Business News

Nov. 23--The Clive Davis showdown is about to begin. The embattled 66-year-old Arista chief is set to meet with the top brass at Arista parent BMG Entertainment to hammer out his future, inside sources said.

The powwow, which is expected to take place early next week, will pit Davis' legal team against BMG chief Strauss Zelnick -- who is set to hire LaFace Records chief Antonio (L.A.) Reid to replace Davis.

BMG is in the process of buying La Face and expects to complete the deal imminently.

Davis already has assembled a formidable legal team comprised of music industry powerbroker Allen Grubman, and prominent music attorneys Joel Katz and Fred Davis, the music executive's son.

Insiders said Davis is adamant about his desire not to become a figurehead at the label, when his current deal expires in June 2000. He is said to be considering BMG's offer to start a publicly held media company with BMG's backing.

The Arista chief is said to be distraught over his treatment by BMG, which two weeks ago alerted him of its plans to hire Reid as his successor.

The music legend, who has always run Arista with little interference from the German-based media giant, had wanted to set up the future leadership of his label on his own.

But BMG insiders said Davis had never set up his own successor and wanted to continue as a solo act.

BMG chief Zelnick said in a statement that he has tried to "make decisions based on what's right for the company. Everyone at BMG, especially me, wants Clive to stay on and continue his legacy."