Interesting. On the basis of what we know, let's lay a few things out.
2007 : PH leaves. Says band split. Band disagree.
2007-2011 : BS, SM, and PC have Bad Lieutenant, and GG has cancer. Not surprising there isn't a New Order, really.
2007-now : PH says lots of unpleasant things in the press.
2011 : SM, GG, and BS formed New Order Now Limited (NON) to reflect new and future New Order activity. GG gets all clear from cancer so rejoins. Vitalturn still exists and administers revenue from activity of New Order dating to 2011. NON Limited administers future activity going forward (shows, records, etc.). 5% of NON revenue is paid to Vitalturn, which splits things equally, hence 1.25%.
2014 : PH says he's an oppressed minority in a partnership. (
https://en.wikipedia.org...i/Shareholder_oppression )
2011-2015 : New Order have grossed £7.8m turonver, averaging around £2.1m per annum and around 25 shows (ish) a year. *
2010-2015 : PH tours his celebration of Joy Division / New Order shows, averaging 80ish gigs a year.
2015 : PH sues NO for not paying him enough from NON to VT.
My layman's view is -
Apparently historical revenue, royalties, licensing for merchanise and Joy Division plimsolls, and so forth for JD + NO band activity 1977-2010 averages approx £1m per year.
Ifthis is wholly paid to Vitalturn (and I don't see why it wouldn't), each member 'earns' around £250k per annum, less operating costs. GG and PC may be paid less, given that neither was a full member for the entire period, and PC was made a full member circa 2004.
Additionally,
if 2011-onwards activity is administered by NON, then how BS, GG, SM, PC & TC divide the money up is up to them. I imagine BS, GG, and SM are majority shareholders (let's say 25% each), and PC, TC are minority shareholders (lets say 10% each) to reflect the late contribution, with 5% to Vitalturn, which in turn is 1.25% to Hook. However New Order are the band that also have to fund all their activities. Road crews, touring, travel, flights, hotels, visas etc are by no mean cheap. So let's say NO operate at a 10% profit (or, around £730,000 profit over the last few years). PH gets 1.25% of the total current New Order revenue, and he isn't paying any operating costs for current New Order activity, which is generating the profit he is taking a slice of. Therefore, by my estimation £250k pa (royalties from Vitalturn historical account) + 1.25% of £7.8m/four years = £2.15m therefore should equal around £24,375 pa, so a gross PH income from 'legacy' activity of around £274k pa.
This is all speculation of course.
Plus the profits he makes from touring The Light. Does he pay New Order 1.25% of The Lights gross revenue to reflect the commercial advantage and value the New Order & JD brand has made to contributing to his current commercial profile? If New Order pay 5% to VT on a legacy basis (of which PH gets 1.25% being one quarter of the band) then surely PH should pay 3.75% of The Light Ltd to New Order to reflect their contribution (being three qarters of the band)? I doubt that happens.
None of this reflects the reputational damage inflicted upon New Order by Hook's very public, and very vitriolic, statements which have damaged the brand.
Personally, and this is just my personal opinion, New Order Now Ltd should pay Vitalturn 10% of profits (
not turnover) to reflect the brand status at the time of New Order recommencing activity in 2011. Which would make PH's payments from VT 2.5% of the profts, not 1.25%. The 90% retained by NON reflects the risk taken by New Order and commercial investment made, in order to generate a profit through live performances.
Vitalturn should - and again, I am by no mean a lawyer - be responsible for all band income for activity from 1977-2010, and also reciept of publishing for all songs written by / with Hook, so Hook gets his requisite share of royalties from "Live At The Troxy", "Bestival" etc (for writing only). If band income pa for 1977-2010 comes to £1m then, once administration costs are taken into account, that feels like a division of around 25% each. Well, slightly less, as Stephen Hague, Arthur Baker, John Robie, and Keef Allen may have writing credits on the odd song.
Clear as mud! An out of court settlement beckons.
