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| Elton John tells of his epic spending sprees | |
| (35 minutes later) | |
| Taking the witness stand to give evidence in a multi-million pound action against his former management company, John Reid Enterprises Limited, and accountants PriceWaterhouseCoopers, Sir Elton treated press, public, lawyers and court officials to a tour of his lavish lifestyle and cavalier attitude to business. | Taking the witness stand to give evidence in a multi-million pound action against his former management company, John Reid Enterprises Limited, and accountants PriceWaterhouseCoopers, Sir Elton treated press, public, lawyers and court officials to a tour of his lavish lifestyle and cavalier attitude to business. |
| The court heard of business meetings in St Tropez and Paris, Los Angeles and Atlanta, of million-pound overdrafts and of epic spending sprees. | The court heard of business meetings in St Tropez and Paris, Los Angeles and Atlanta, of million-pound overdrafts and of epic spending sprees. |
| Sir Elton, 53, is suing Andrew Haydon, 45, managing director of JREL, and PWC for negligence in managing his affairs. | Sir Elton, 53, is suing Andrew Haydon, 45, managing director of JREL, and PWC for negligence in managing his affairs. |
| He alleges that under a management agreement between himself and former close friend Mr Reid "several millions" in tour expenses should have been borne by JREL. Both defendants deny the allegations. | He alleges that under a management agreement between himself and former close friend Mr Reid "several millions" in tour expenses should have been borne by JREL. Both defendants deny the allegations. |
| Between January 1996 and September 1997, following the signing of a £40m record deal with Polygram, Sir Elton "went spending mad". Mark Hapgood QC, appearing for PWC, put it to him that he had spent just under £30m at an average of £1.5m a month in that period. "Do you have any reason to think that innacurate?" | Between January 1996 and September 1997, following the signing of a £40m record deal with Polygram, Sir Elton "went spending mad". Mark Hapgood QC, appearing for PWC, put it to him that he had spent just under £30m at an average of £1.5m a month in that period. "Do you have any reason to think that innacurate?" |
| "Probably not, no," he said. | "Probably not, no," he said. |
| "It says here you spent £293,000 on flowers alone. Is that possible?" | "It says here you spent £293,000 on flowers alone. Is that possible?" |
| "Yes, I like flowers," replied Sir Elton. | "Yes, I like flowers," replied Sir Elton. |
| After hearing that he had spent an additional £9.6m on property in the same period, taking his spending towards the £40m mark the singer said: "I have no one to leave my money to, I am a single man, I like spending money." | After hearing that he had spent an additional £9.6m on property in the same period, taking his spending towards the £40m mark the singer said: "I have no one to leave my money to, I am a single man, I like spending money." |
| Mr Hapgood said that following the spending spree Sir Elton realised he had run through his entire fee from Polygram and decided to try to claw back some of his costs from JREL, a claim the singer described as "nonsense". | Mr Hapgood said that following the spending spree Sir Elton realised he had run through his entire fee from Polygram and decided to try to claw back some of his costs from JREL, a claim the singer described as "nonsense". |
| "You can't say you felt bewildered in the summer of 1997," said Mr Hapgood. | "You can't say you felt bewildered in the summer of 1997," said Mr Hapgood. |
| "Yes I am, that's why the case is here" | "Yes I am, that's why the case is here" |
| Told again that he had spent the money, Sir Elton said: "Yes, but no one had told me ... I suspected I was being ripped off, I believe the expression is." | Told again that he had spent the money, Sir Elton said: "Yes, but no one had told me ... I suspected I was being ripped off, I believe the expression is." |
| Sir Elton explained that his relationship with Mr Reid had begun in 1973 and for the next 25 years he had acted as his manager. They had enjoyed a personal relationship, a business relationship and finally a close friendship. They had much in common, including problems with drink and drugs and a short fuse. In 1992 Mr Reid became the sole benificiary of the singer's will. | Sir Elton explained that his relationship with Mr Reid had begun in 1973 and for the next 25 years he had acted as his manager. They had enjoyed a personal relationship, a business relationship and finally a close friendship. They had much in common, including problems with drink and drugs and a short fuse. In 1992 Mr Reid became the sole benificiary of the singer's will. |
| The singer told the court that in the early 1980s Mr Reid had taken over all his business affairs and in 1984 they met in St Tropez to thrash out a new management agreement under which, Sir Elton said, Mr Reid would handle all his affairs and meet his costs in exchange for commission of 20% on all gross earnings, including publishing. | The singer told the court that in the early 1980s Mr Reid had taken over all his business affairs and in 1984 they met in St Tropez to thrash out a new management agreement under which, Sir Elton said, Mr Reid would handle all his affairs and meet his costs in exchange for commission of 20% on all gross earnings, including publishing. |
| "It was an extremely generous agreement," he said. | "It was an extremely generous agreement," he said. |
| "I wanted an uncomplicated life. You take care of everything," he said he told Mr Reid. | "I wanted an uncomplicated life. You take care of everything," he said he told Mr Reid. |
| Sir Elton repeatedly said he had no interest in business and signed documents sent to him by Mr Reid without reading them first. | Sir Elton repeatedly said he had no interest in business and signed documents sent to him by Mr Reid without reading them first. |
| "I was never interested in business. I have a flair for writing, I have a flair for composing, but I don't have a flair for this," he said gesturing at 24 box files of legal documents alongside the witness box. | "I was never interested in business. I have a flair for writing, I have a flair for composing, but I don't have a flair for this," he said gesturing at 24 box files of legal documents alongside the witness box. |
| On his relationship with Mr Reid he said: "When you have a relationship with someone over 27 years who you trust implicitly, that is trust. We had been through a personal relationship, then a business relationship. He was my right arm, the business arm. I was the left arm. I produced the goods." | On his relationship with Mr Reid he said: "When you have a relationship with someone over 27 years who you trust implicitly, that is trust. We had been through a personal relationship, then a business relationship. He was my right arm, the business arm. I was the left arm. I produced the goods." |
| Earlier Sir Elton accepted Mr Hapgood's contention that "what you are trying to do is get back from the deep pockets of PWC some of your past generosity to Mr Reid." | Earlier Sir Elton accepted Mr Hapgood's contention that "what you are trying to do is get back from the deep pockets of PWC some of your past generosity to Mr Reid." |