Concert promoters' €3.8m battle
Court to settle dispute over profit from events
Tuesday November 03 2009
CONCERT promoters Denis Desmond and Eamonn McCann are involved in a legal battle about the share of profits from various outdoor events over a number of years.
Mr McCann, of Deramore Drive, Belfast, claims he had became increasingly concerned about the manner in which Mr Desmond dealt with profits from an alleged partnership between them and had arranged for a "forensic" examination of books and records.
He claims he is owed €3.8m from a number of events between 2001 and 2006 but that Mr Desmond claimed that figure should be €104,680. At no stage had Mr Desmond put a "realistic value" on the amount due, it is alleged. Mr McCann alleges Mr Desmond had not kept the accounts and income of the alleged partnership as a separate account, but instead had permitted those funds to be used by his MCD Productions company.
Mr McCann also claims further monies received as sponsorship had been retained by another company controlled by Mr Desmond, Gaiety Investments. Neither MCD nor Gaiety had any lawful entitlement to receive such monies or to make any deduction for expenses or overheads, it is claimed.
It is further alleged Mr Desmond initially placed obstacles to Mr McCann gaining access to the accounts of both those companies.
The proceedings were admitted to the Commercial Court yesterday on the application of Brian O'Moore, counsel for Mr McCann, who said there was an ongoing investigation of books and records being carried out for Mr McCann by forensic accountants Grant Thornton.
Maurice Collins, counsel for Mr Desmond, of Vartry Lodge, Strand Road, Killiney, Co Dublin, said it "beggars belief" a claim of such magnitude, if it did exist, would have been allowed to linger since 2006.
The key claim was there had been a variation in the distribution of profits without regard to overheads but his side disputed that, counsel said.
In his claim, Mr McCann alleges he began a business relationship with Mr Desmond in the 1970s and they promoted and organised music events together.
That relationship developed into a partnership but was never reduced to writing, he claims. It's also alleged that it was agreed in June 2006 that Mr Desmond would buy Mr McCann's share of the partnership in relation to the promotion and operation of outdoor concerts in the Republic for 4.66 times the average net profits of the partnership for the years 2003, 2004 and 2005.
Profits
Mr McCann claims it was necessary for him to see the relevant books and records of the partnership so as to calculate the profits for the relevant period.
It is further alleged Mr Desmond later denied the existence of a partnership, was reluctant to disclose the books and accounts and provided limited information relating to accounts.
- Tim Healy
Irish Independent
