Billboard - USA (2020-01-25)

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PG. 36 INCLUSION REPORT PG. 38 LATIN POLITICS PG. 42 SELENA GOMEZ’S ‘RARE’ MANAGER


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Sunday


Night


Drama


As the Recording Academy’s war


of words with embattled CEO


Deborah Dugan heats up, the


spotlight on the organization’s


legal expenditures and governance


is threatening to steal the show


BY MELINDA NEWMAN


and GAIL MITCHELL


O


N THE EVE OF MUSIC’S


biggest night — the 62nd


Grammy Awards — the


most compelling drama


may be unfolding offstage as the


Recording Academy’s new CEO,


Deborah Dugan, now on leave, squares


off with the organization’s old guard in


a verbal battle royale — complete with


high-powered lawyers — featuring


allegations of harassment, conflicts of


interest and financial impropriety.


Dugan started just five months ago,


replacing Neil Portnow (who had led


the Recording Academy for 17 years),


and many music industry executives


believed she would modernize a


stodgy institution, scrutinized for


its glaring underrepresentation of


women and artists of color accepting


awards during the televised show


and a secretive nomination process.


Now the leadership — and future —


of the academy has been thrown into


question just as the world turns its


attention to the prestigious annual


awards show that provides most of the


group’s public profile and a consider-


able amount of its revenue.


On Jan. 16, the academy’s board of


trustees placed Dugan on leave after a


senior staffer, understood to be direc-


tor of administration Claudine Little


— Portnow’s longtime right hand —


accused Dugan of alleged misconduct,


including bullying, a source con-


firmed to Billboard. The academy has


hired two independent third-party


investigators to look into the allega-


tions in a process that’s expected to


conclude in early spring.


But weeks earlier, Dugan had sent a


scathing memo to the academy’s head


of human resources, alleging that the


organization was paying exorbitant le-


gal bills, presiding over improper vot-


ing procedures and turning a blind eye


to conflicts of interest among members


of the board of trustees and outside


legal counsel, according to a source.


The academy tells Billboard that on


Jan. 10, Dugan asked to leave her job


with a $22 million settlement. Harvey


Mason Jr., the songwriter-producer


who chairs the academy’s board and


is now acting as interim CEO, wrote in


a Jan. 20 letter to academy members


that Dugan’s attorney “informed the


executive committee that if Ms. Dugan


was paid millions of dollars, she would


‘withdraw’ her allegations and resign


from her role as CEO.”


The academy countered with a mul-


timillion-dollar offer that was


much less than $22 million,


two sources tell Billboard, but


she turned it down. Dugan’s


co-counsel Doug Wigdor said


Dugan declined to comment.


After Dugan was placed


on administrative leave, her


co-counsel Bryan Freedman


said in a Jan. 17 statement,


“When our ability to speak


is not restrained by a 28-page contract


and legal threats, we will expose what


happens when you ‘step up’ at the Re-


cording Academy, a public nonprofit.”


Freedman was referencing the


now-infamous remark Portnow had


made after the 2018 show when he


suggested women in the music indus-


try should “step up” to advance their


careers and receive more recogni-


tion at the Grammys. That comment,


which Portnow said was taken out


of context, led a number of prominent


women in the music industry to call


for his dismissal and the establish-


ment of a task force to review the


academy’s — and the


music industry’s — lack of


inclusion and diversity.


A few months later,


another scandal erupted


when Dana Tomarken, the


longtime MusiCares and


Grammy Foundation vp


who had been terminated


that April, wrote to the


board of trustees to excori-


ate the academy and accuse Portnow


of improperly moving funds away from


MusiCares (he and the academy have


denied any wrongdoing). Tomarken


then sued for wrongful termination;


she and the academy reached a settle-


ment in November 2019.


35%


PERCENTAGE


OF FEMALE


TRUSTEES ON


THE RECORDING


ACADEMY’S


BOARD


Dugan during the


Grammy nominations


announcement in New


York on Nov. 20, 2019.


JO


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JANUARY 25, 2020 • WWW.BILLBOARD.COM 33

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