Is producer-songwriter Dallas Austin broke? Much like several artists before him who couldn’t manage their money, reports are indicating he’s going through financial difficulties.
According to a story from DrewReports.com, Austin recently fired several of his Rowdy Records staff, including longtime staff member David Gates and Dallas’ nephew Juan Farmer. The reason is said to be money problems.
While nothing is confirmed, it is said that the producer had numerous investors for his ventures who’ve pulled out, leaving him holding the bag. That, however, isn’t true, according to Austin.
Austin told SandraRose.com that he denies the claims, stating his longtime history in the business has resulted in very long money.
“I’ve been doing this since I was 16, 17 years old,” he told the blogger. “I’ve owned publishing companies before anybody around here. I was like the first one to do it. I’ve owned studios before anybody around here. I’ve owned 100% of my songs. I’ve invested in films, Rowdy TV… As far as my companies are concerned, I’m my own investor. How could I be broke when you open up DUB magazine and I’m standing there with nine cars? I’ve always been my own investor. I own all my companies by myself. I don’t have no partners.”
Despite his claims, a source close to the Rowdy Records camp told SandraRose.com that he’s had financial investors throughout his career, beginning with Monica’s first album.
“Dallas had financial backers for Monica’s first album and for Sammie’s album,” the source said.
However, the source said that the layoff of both Gates and his nephew were good moves, claiming they spent company money for recreation — including a $30,000 bar tab — and used the label’s offices for his own side ventures.
Austin, however, said the two employees in question left, so he could “restructure the company to bring in new people who know more [about the record business] than I do.”
He did say they were taken care of though, because he still cares about them.
“These people been around me a long time so I still take care of ’em. It wasn’t just like ‘oh, just get out of here,'” Austin explained. “I made sure everybody was straight, gave them [severance] packages… I said [to Farmer] ‘go ahead man, do your [party promotions] thing, I’m wit’ you. Get to the next level.’ … Juan is a great guy to a lot of people. He has a loyal character.”
As for the future, Austin says he has new music coming, and revealed the launch of Rowdy Clothing.