Brian Epstein - Business Dealings

Business Dealings

Epstein once offered all four Beatles a fixed wage of £50 a week for life. Harrison remembered that he was earning £25 a week at the time, which was more than the £10 a week his father was earning. The group declined Epstein's offer, believing they were worth much more than £50 a week.

NEMS had a staff of twenty-five at the time of its move from Liverpool to London in 1964. The Beatles' concerts were booked by NEMS, and as it also presented groups as an opening act, it accrued monies as promoter, booking agent and manager for all concerts. The Beatles were constantly in demand by concert promoters, and Epstein took advantage of the situation to avoid paying some taxes by accepting "hidden" fees on the night of a performance, which he always kept in a brown paper bag.

Epstein also successfully managed Gerry & the Pacemakers, Billy J. Kramer and the Dakotas (who had three hits with Lennon–McCartney songs), the Fourmost (their first two singles were written by Lennon), the Cyrkle (Epstein's first American group), and Cilla Black (who was Epstein's only female artist), as well as Tommy Quickly, and Sounds Incorporated (later known as Sounds Inc.). He sent his roster of artists on "package tours" around the UK; a common practice at the time. This involved short sets by each act, alternating with a compère and/or a comedian. Epstein once revealed that even though he was entitled to be reimbursed by acts for expenses incurred, he paid for his own flights to and from the US, as he did not see himself as being part of a touring group. Photographs, transport and international telephone calls were paid from his own 25 per cent share in profits.

The Beatles toured the Philippines in July 1966, playing two shows at the Rizal Memorial Football Stadium in Manilla. Epstein unintentionally snubbed the nation's first lady, Imelda Marcos, when presented with an invitation to a breakfast party. He had politely declined on behalf of the group, as it was their policy never to accept such official invitations. The Beatles and their entourage were ejected from their hotel on the same day and were given a police escort to the airport, even though Epstein had publicly apologised for the misunderstanding in a televised statement, which was not seen or heard because of static. The entourage boarded the plane for home, but Epstein and Beatles' assistant, Mal Evans, were ordered off, with both believing they would not be allowed back on the plane. Epstein was forced to give the tax authorities £6,800 worth of Philippine peso notes earned from the Manila shows, and he also had to sign a tax bond verifying the exchange before being allowed back on the plane with Evans.

Epstein added the Vic Lewis Organisation to NEMS in 1966, and later brought impresario Robert Stigwood in as a manager. He once offered to sell the control of NEMS to Stigwood, without telling any of his artists about the offer. McCartney was taking a more active interest in NEMS' finances as it became known that some artists with more ruthless managers—such as the Rolling Stones, under the management of Allen Klein—claimed to be benefiting from more commercially advantageous terms. After Epstein's death, Clive Epstein assumed control of NEMS, being the company's second largest shareholder. Stigwood then tried to take over management of NEMS, but all four Beatles vigorously objected, with Lennon saying, "We don't know you. Why would we do this?"

McCartney admitted that they had always signed all the contracts Epstein presented to them without reading them first, but after Epstein's death, Lennon complained, "Well, he was alright. I've found out since, of course, that he wasn't quite as honest to us as he made out". Despite this, other interviews with Lennon report him as being loyal to Epstein's memory: "We had complete faith in him when he was running us. To us, he was the expert". When asked in 1964 about his standing as a manager or businessman, Epstein replied, "Fair, as a businessman, fair. I've got a business background, and probably a reasonable business brain. I'm no, sort of, genius ." Asked about his deficiencies, Epstein replied, "I'm probably too conscious of ideas, rather than finance behind ideas."