A judge has given his approval to the late singer Bo Diddley’s managers to sell off his music catalog to pay for the rock and roll pioneer’s outstanding $1.1 million debt to the IRS.
Bo Diddley
The assets are estimated to be worth $4.3 million, according to the Gainesville Sun. The guitarist died in 2008 and his 22 heirs are reportedly opposed to selling off the publishing rights to the approximately 70 songs in his music catalog. They also objected to the fees and commissions charged by Diddley’s managers, agents and estate attorney.
However, the rights to the catalog are currently held by Fuji Music, and the heirs have needed to negotiate a deal to pay off the tax debt.
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Circuit Judge Robert Roundtree ruled last Friday that the managers could take a 15 percent commission on the sale and the estate attorney’s firm could collect a 5 percent commission. The heirs are hoping to earn a 15 percent revenue stream from the rights.
Diddley, who was born Ellas Bates McDaniel, died in 2008 at the age of 79, a year after he suffered a stroke. Diddley had sold some of the music rights to pay for his medical care after his stroke, and the IRS is claiming taxes on the sale of those rights.
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I want to clarify two mistakes in your article. The estate attorney's firm is not the one receiving a 5% commission- the 5% goes to a law firm in NY that negotiated the deal with Fuji. Ron Stevens is the estate attorney. Ron Stevens will get the 10% that he has been getting all along. Second, Bo did not sell some of his music rights to pay for medical care after his stroke- one of his managers sold them. Yes, Faith Fusillo is the one who signed the contract with Primary Wave. She told the Gainesville Sun that Bo signed the contract even though she could have signed it with power of attorney, but she did not want to appear as if she was taking advantage of Bo. She later admitted in court that she signed the document. The amazing fact is that Bo had no health insurance even though he could have applied for Medicare. He could have afforded a supplemental policy also. He relied on his managers since he was illiterate, and they mismanaged his affairs. Just wanted to clarify some things and state the truth.
Posted by: ScottFree | May 12, 2011 9:01 AM
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