Notable Artist/Manager Relationships: The Beatles & Brian Epstein

We are starting a new series called Notable Artist/Manager relationships here on our blog. Each time we will focus on a certain iconic manager, and their relationship with the artist they managed. Since we are a management company after all, we thought it would be interesting to dive deep into these artist/manager relationships.

Today we will be focusing on the relationship between Brian Epstein and The Beatles.

A little background information:

Epstein was an English music entrepreneur, who worked at his parents' North End Music Store in Liverpool. He noticed The Beatles in Mersey Beat magazine, and went to meet after a performance at The Cavern Club. After watching them play for another three weeks, he met with the band in December 1961, and proposed managing them. 

The Beatles signed a five-year contract with Epstein early next year, which gave Epstein 10-15% of their income. They signed a new contract in October 1962 which gave Epstein 15, 20, or 25% of revenues, depending on how much he helped the band earn. The Beatles would then share any income after various expenses had been deducted.

The Beatles signed Epstein's first management contract, but Epstein did not, saying "Well, if they ever want to tear it up, they can hold me but I can't hold them". He then worked towards trying to get the band a record contract. Epstein was rejected by nearly all major recording companies in London, until he secured a meeting with George Martin, head of EMI's Parlophone label. In May 1962, Martin agreed to sign The Beatles, partly because of Epstein's conviction that the group would become internationally famous.

The deal gave The Beatles one penny for every record sold, to be split amongst the four band members. 

After their first recordings sessions with Martin, he suggested that they needed a better drummer. It was left to Epstein to fire Peter Best, to be replaced by Ringo Starr. 

Epstein once offered all the members of The Beatles a salary of 50 pounds a week for life. The group declined, believing (rightly so) that they were worth more than 50 pounds a week. 

The Beatles meeting with Brian Epstein.

So, what happened after?

Paul McCartney later admitted that the band basically signed anything that Epstein put in front of them. This would prove to be problematic, as it cost them millions in merchandise revenue, and eventually cost them their publishing. 

The Beatles' early success was due to Epstein's management style and the band trusted him without hesitation. In addition to handling The Beatles' business affairs, Epstein often stepped in to mediate personal disputes within the group. But, the band's loyalty to Epstein later proved damaging, and likely cost the band millions. Epstein's death in 1967 marked the beginning of the group's end and had a deep effect on each Beatle. Paul McCartney actually said, "If anyone was the Fifth Beatle, it was Brian." John Lennon later said that Epstein's death was the beginning of the end for The Beatles, saying "I knew that we were in trouble then ... I thought, 'We've had it now'"