A cursory glance at U2’s accounts might lead hasty observers to conclude that the band is in a spot of financial bother. Accounts for Not Us, the band’s holding company, for the year ending December 31, 2003, show the firm with debts of more than EU18.5 million.

A deeper inspection of the band’s finances -– a myriad of subsidiaries, inter-company loans and trusts -– reveals that much of the money owed by Not Us is owed to other companies under the control of U2.

For example, EU8.8 million of the Not Us debt was owed to Thengel -– a company controlled by the band.

An additional EU9.6 million was owed to U2 subsidiaries such as Straypass, a company set up to handle the finances arising from a tour, which was owed EU2.6 million.

Not Us owed a further EU4.7 million to U2 Ltd -– the band’s master-tape manufacturing subsidiary.

According to the accounts, U2 Ltd’s authorised share capital for the year was almost EU127 million.

All four band members are listed as directors, with Adam Clayton registered as company secretary.

Not Us is not obliged to furnish complete accounts, and its abridged returns do not contain details of income and expenditure.

It is thought that the majority of U2’s money is stored in trusts and partnerships. Neither the U2 partnership nor Princus Investment Trust, a pension scheme vehicle, has to file public accounts.

Last year’s accounts regarding Bono and the Edge’s ownership of the Clarence Hotel in Dublin are filed under a holding company called Brushfield.

They showed that the hotel made a pre-tax loss of EU302,000, and that it closed the year with accumulated losses of more than EU11.2 million.

However, turnover increased from EU13.4 million in 2002 to EU14.9 million in 2003.

It also had EU9.7 million in the bank at the end of the year.

The appendix at the back of U2 Ltd’s accounts, which lists other directorships held by the band, is a lengthy one. Clayton declares directorships with Mother Records (the music company set up and owned by the band), Not Us, Parlade Investments, Remond, Straypass, the Fair City Trust and Thengel.

The Edge (Dave Evans) and Bono (Paul Hewson) both sit on the boards of the following companies: Kitchen Recordings, Lakehaven, Lorijudd Investments, Mother Records, Mother Music, Not Us, Ravencrest, Remond, Straypass, the Fair City Trust and Thengel.

The Edge is recorded as a director of the ill-fated Media Lab Europe and a former director of Salmeen Enterprises Ltd., while Bono is listed as a former director of Media Lab Europe.

Larry Mullen Jr. is named as a director of Mother, Not Us, Parlade, Remond, Restwell, Straypass, Fair City and Thengel.

© Sunday Business Post, 2005.

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