Space Ibiza Wars. The Empire Strikes Back.
After a 16-year war between Pepe Rosello and Abel Matutes over the rights to trade the iconic Space Ibiza brand, a court in Valencia has recently ruled that Mr Matutes is the legal owner. The Judge stated in his ruling that the registration of the famous Space Ibiza branding by Mr Matutes in 1991 was official and that Pepe Rosello’s 2008 registration of the same logo was invalid as it copied the 1991 registration. The verdict resulted in the immediate closure of the Space Ibiza party at Eden and the removal of all Space Ibiza branding from Eden’s social media channels. It ends a bitter dispute between the old business partners and destroys any chance of Pepe Rosello saving face in this sad affair. What could have been agreed upon mutually and in private was played out publicly by Rosello, and he paid the ultimate price for his poor judgment in this affair.
Rosello played the victim in a saga that divided camps and opinions in Ibiza. The Matutes family, known for their strategic thinking and not airing their private business in public, were portrayed as the bad guys. They say all is fair in love and war and that business is business, and this was all about business. Rosello was the aggressor, while Matutes sat back and said nothing, playing the long game and knowing he had all the aces up his sleeves. Out of respect, several olive branches were extended to Rosello to try and bring him back into the fold, but these were all rejected. One rumour suggests that Rosello was offered the same deal as Yann Pissenem to rebrand Matutes Hotels as Space Ibiza Hotels, with both operating the nightclub/hotel business on a 50% partnership deal, just like the Ushuaia Entertainment model.
However, Rosello went on the attack, claiming to all who would listen that he was unfairly robbed of his prodigy. Rosello was mugged alright, just like a tourist getting pickpocketed in San Antonio, but his business naivety allowed it to happen. Matutes had simply outmanoeuvred him; there was nothing illegal in his actions. It was his building, which he named Space, and Pepe was a guest in his house. Like Nanny McVie, Pepe used his mystical powers, Ibicenco charm and magic to turn the venue into an award-winning club with the help and protection the Matutes Empire offered him in Playa Den Bossa. Pepe was no saint; he was well known for stamping out all opposition and objecting to competitors’ licences. He was responsible for establishing the disco mafia and sat at the head of its table for some years. Rosello also wanted Bora Bora to be shut down along with DC10. With the power of the Matutes family behind him, Pepe felt he was invincible, and maybe that inflated powertrip led to his downfall.
Removing the emotional aspect, the court ruling last month revealed a crucial fact- the Space Ibiza trademark was registered by Matutes in 1991, just two years after Rosello became a tenant in his property. This legal basis was instrumental in the court’s decision to declare Matutes as the rightful owner of the brand. Matutes could have claimed ownership at any time, but he waited over thirty-three years to do so. That would imply that from 1991 to 2008 when Rosello registered his trademark, both Rosello and Matutes worked together as partners. Rosello would have to have been both blind and deaf not to notice the new logo the club was trading under. It appeared on all its merchandise and branding, and up until 2008, Pepe said or did nothing to object to it. Both were happy with the deal they had together trading under that trademark.
In that time, Space went from strength to strength as partners, with Carl Cox rising to prominence under that trademark. The landlord, Matutes, would have invested time and money in the building and licences. It suited Rosello to be a tenant as dealing with licences and ownership titles was costly and bureaucratic. Back in the early days, Ibiza was a different island, where handshakes and honour were all that was required in conducting business dealings, and contracts were unheard of. So, all was well in the Matutes Rosello camp until the lease was up for renewal in 2009. This was where things started to change between the partners. A younger generation of the Matutes dynasty was inheriting the family business, and he had ambitious plans to upscale the product on offer. This was a new era for Space Ibiza, and Pepe’s business model needed to change as Space Ibiza was drifting and losing direction, looking rough around the edges. Everybody on the island could see it. The rumour at the time was that to secure an extension in the lease from 2009 to 2016; a deal was made regarding the ownership of the trademark and the right to use it on the island.
For the first time since 1989, Pepe made it publically clear that he was unhappy, and the mood music changed in the previously calm relationship between the partners. Several legal challenges over using the Space Ibiza car park and defamation of character followed before the plug was pulled on the Space Ibiza project in 2016. While Matutes remained silent, Pepe went on the attack, telling all who would listen to him that he was the victim and Matutes was the guilty party. At one stage he even threatened to bulldoze the club such was his anger. He found a receptive audience and was aided by a well-connected British element that took to social media to spin their side of the we were robbed story. It severely affected the employees at Hi and made their working conditions miserable. The rebels began to manufacture rumours that Space Ibiza was to return to different venues around the island. Pepe gave several interviews stating he was returning Space to Ibiza. It was still his to trade.
An essential factor to consider in this story, and what we did not know then, is that Pepe and his associates were most likely aware of the trademark claim registered by Matutes in 1991 and said nothing about it. You have to ask yourself why. Instead, they went on the offensive for a reason, and one theory was to try to validate Pepe’s trademark claim made in 2008. Generate enough credibility and publicity that you inherently own something, and public opinion will be on your side. It’s called controlling the narrative. They even went so far as to open up a party in Ibiza with the disputed Space Branding in lights over the door of Eden nightclub this year, booking high-profile and respectable DJs to lend authority to the party. This strategic plan had one mission: to win ownership of the Space Ibiza trademark rights in court. It was a valiant attempt worth risking, but were all the cast aware of the full facts of the deal conducted behind closed doors between Pepe and Matutes? Ibicenco culture is very private, and they always prioritise their needs over those outside the island.
Dont make me destroy you
I have observed the Matutes family for nearly 20 years. I have listened to all the stories, good and bad, but the one thing you will never hear said is that they are dishonest in their business dealings. They are shrewd, sharp operators who will use their influence and power to take advantage of a business opportunity, but ultimately, they are honest brokers. It is unknown in Ibiza to outfox Matutes in a business deal, and Pepe should have known he was fighting an uphill battle, but understandably, pride and ego clouded his judgement. We have all been there. I say these things about the Matutes to add context to the Space Ibiza story because Rosello is portrayed as a victim even in defeat. A recent video promoting the lame-duck party called “No Space” at Eden implied that those who took the Space Ibiza branding away from them were “cowards and bullies”. While it was a ballsy move to open the Space Ibiza party at Eden, those balls have now been castrated, Ibicenco style. Personally, I have had dealings with both sides in this war. I have always found the Matutes and their associates professional and respectful, but on the other side, the experience was not so pleasant. I will leave it at that.
You must admire Pepe for standing up and fighting his corner, but it was more of a Tilting at Windmills exercise. There was no enemy but himself. So, with Pepe finally silenced, where does this leave Space Ibiza? Before Space Ibiza replaced Edens’s flagship party, Defected, the rumour was that Matutes would rebrand the old Privilege venue with the Space Ibiza branding. The party at Eden, which ran for three months, damaged that brand, but can it be salvaged at Privilege? However, it’s a tough call to make. Maybe Matutes wanted ownership of Space Branding in the first place because he did not wish it competing against his future business interests at Hi and Ushuaia. After years of hard work and investment, Hi and Ushuaia are now established brands in electronic music worth more than Space Ibiza is valued now. While I do not think Privilege will carry the Space Ibiza branding over its door, as its concept will be more universal, it may be used as branding in a room inside the new club or transferred to Hi on the hallowed ground where Space once stood. It resides as a low-profile pool party at the Matutes-owned Hard Rock Hotel, where the infamous Coming Soon banner with the disputed Space Ibiza logo appeared in November 2021. However, that move was probably initiated to establish brand ownership for trademark purposes—a ploy employed unsuccesfully by Rosello at Eden.
An interesting footnote to this story was the absence of Carl Cox from the failed Space Ibiza party at Eden. Unlike the other DJs booked, it would appear he knew something they didn’t about the legal wranglings in the background. Space will never be Space without Cox at its helm. The British DJ was clever enough not to declare on the Eden lineup, as was Jason Bye, another old Space Ibiza stalwart. Yann Pissenem has not hidden his desire to have Carl Cox play at Hi; he did book him to play at Ushuaia during the Space Ibiza war, an invitation Cox accepted. If Cox ever changes his mind and returns to the club, I would guess that door remains firmly open. With the facts of the affair made public, Cox may reconsider his position, but that may be a tall order for a man who kept his integrity by remaining loyal to his old friend Pepe Rosello. It will all rest on timing and allowing emotions to heal, but the possibility of it happening is not unsurmountable, given Yann Pissenem’s diplomatic skills.
Another factor that might influence the whole story is the legal fallout from the court case, which ruled that Matutes was the rightful owner of the Space Ibiza branding and its licencing. While Pepe quickly stated that he respected the court ruling, he went out of his way to claim that the trademark only affected Spain. That claim is unusual, given that trademarks are typically registered to territories such as Europe, America, South America, Asia, etc. They are not usually country-specific. If it were a European-registered trademark, Pepe Rosello would be liable for any claims made on that licence if Matutes were to come after those non-Spanish companies violating his trademark. Was this part of the Matutes and Rosello’s private deal hammered out in 2008? That was the rumour we reported then: Matutes would retain the Spanish rights, and Pepe would own the international rights. That would lead us to believe a deal took place because it is very unusual to register a trademark to just a country when the standard practice is registering it to a territory. If he does not already have the European rights, Matutes could still register them and come after those companies currently operating the Space Ibiza branding outside of Spain. It’s a card he can still renege on. The very first logo for Space Ibiza was designed in 1986 when Abel Matutes opened the club but it was changed when registered in 1991. Image credit Jurgen Fetscher.
Space Ibiza Original First Logo 1986 Abel Matutes
In conclusion, this whole saga has damaged the once-iconic Space Ibiza era. At the end of the day, this was a personal war between two respected Ibicenco families, which revolved around honour and reputation. It could have been settled amicably. It was also about power and taking control of a commercial asset. We will never know the true story, as only two people know the handshakes that were agreed. When you think about it, the business model of Space Ibiza contained just a venue and a logo; it never really had a strong brand concept like Ushuaia, Pacha, DC10, Bora Bora and Amnesia. The emotional element combined with a professional business concept could have been developed under the Matutes/Rosello partnership, but sadly, that relationship turned sour. People were used in this affair, and maybe details of private agreements were hidden to suit personal agendas. If I were in Pepe Rosello’s camp, I suggest building bridges rather than continuing to burn them. It is evident that they require improved local knowledge and firepower necessary to defeat the Empire. They are a third-division outfit competing against a premiership team in a Champions League game away from home. In The Empire Strikes Back, after the climatic light sabre battle scene with Luke Skywalker, Darth Vader says, “There is no escape, don’t make me destroy you.”
To be continued…..
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