Just to throw a little info into the ring: If I remember correctly, I think it was Mike who talked to Warner, and got S.O.B full ownership of the record when they left.
I don't know the entire situation obviously, but I tend to think that when Mike signed S.O.B, he thought things would go over smoothly, as they should've.
You may remember Ryu saying that Tom Whalley originally said he loved the record, and everything was going good.
Then all of a sudden, when he was asked why things had started getting held up, he said he didn't like the record anymore.
Whether it was political or what, I don't think Mike expected Whalley to bail on S.O.B and their record at the last moment.
I think it all essentially came down to Tom Whalley.
I don't think Mike intentionally did anything against S.O.B in the situation, and the fact that he got them their record before they left helps solidify my opinion on that (you know how Warner tends to be about completely owning their artists and said artists material).