CONCERT PROMOTER Eamonn McCann has told the Commercial Court he was in a partnership with MCD’s Denis Desmond from “day one” of their business relationship.
The only break in that partnership was in 1995 when an issue arose between them over the bringing to Ireland of the Power Rangersshow, he said. That dispute was about the share-out of profits between Mr Desmond's MCD company and Mr McCann's Wonderland Productions company in Northern Ireland, the court heard.
Mr McCann, of Deramore Drive, Belfast, said the fees agreed for that act were a lot more than Mr Desmond had told him.
Their relationship was repaired the following year after a meeting between the two men in Dublin’s Shelbourne Hotel, he said. He had brought along his personal friend, stage hypnotist Barry Sinclair, to that meeting because he was “a little bit nervous” going into it.
After that meeting, business between himself and Mr Desmond had returned to how it was before the dispute, he said.
Mr McCann was giving evidence on the second day of his action against Mr Desmond over a June 2006 agreement.
Mr McCann claims it was proposed Mr Desmond would buy Mr McCann’s share of their alleged partnership in the promotion and operation of outdoor concerts in the Republic for 4.66 times the average net profits for the three years 2003 to 2005.
Mr Desmond, Vartry Lodge, Strand Road, Killiney, Co Dublin, denies Mr McCann’s claims and also says their dealings were a joint venture and not a partnership.
Mr Justice Brian McGovern is being asked to deal with a number of discrete issues in relation to the alleged partnership, including its nature and how profits were to be calculated.
Yesterday, Mr McCann said both he and Mr Desmond operated limited companies in their respective jurisdictions but their business relationship was as partners as he understood it. “That meant we were 50-50 partners,” he said.
Earlier, Mr McCann said when profitability was down in the business in the mid-1980s, he and Mr Desmond had agreed Mr McCann would take over indoor concerts in Northern Ireland until things got better.
Mr McCann had also got involved in property and bought the Limelight venue in Belfast. He was also involved in managing singer Brian Kennedy and handling boxing events in Belfast on behalf of London promoter Barry Hearn.
Mr McCann said he spent about 60 days a year in Dublin at events, particularly overseeing the bar operations, which up until about 2000 had been run by a third party. He said Mr Desmond rarely came to Belfast. “Denis didn’t like coming to Belfast, maybe he came up once a year, maybe not even that.”
Asked by his counsel Brian O’Moore SC when he believed the partnership had first started, Mr McCann replied: “We had always been in partnership from day one.” The first time he was aware the partnership was being challenged was when Mr Desmond’s solicitors wrote to him in June 2006, he said.
The case continues.