The President of Operations for the label was Alan Leeds, brother of saxophonist Eric Leeds. Leeds had previously served as Prince’s tour manager. He was replaced by former trade journalist Gaham Armstrong. Craig Rice also served as President shortly after Alan Leeds left.
Prince’s management firm at the time, Cavallo, Ruffalo & Fargnoli, began signing artists to the label, at times even without Prince’s knowledge or permission. That precipitated the beginning of the end to a successful partnership.
Shortly after firing the management team, lawsuits ensued and it was discovered that the label was mismanaged from the outset, with Warner Bros. Records taking heavy losses due to exorbitant advances paid to Prince and his management team for the label.
Warner Bros. Records also helped to pay for Paisley Park Studios, and executives insisted on a return on their investment, which resulted in several major artists recording their albums at Paisley Park Studios, at times even against Prince’s wishes.
Paisley Park Records folded with Prince retaining the masters of all artists, artists advances that were kept by the company, and no support from the label.