The trial for the dissolution of The Beatles’ contractual partnership – Day 5

About

‘worth over 6M’ The Beatles’ American manager, Mr Allen Klein, claimed in the High Court yesterday that the group had earned more than 9 millions in 19 months under his management, and that in six and a half years before his management they earned under 8 millions.” He said that on February 9 the ” whole Beatles outfit ” was worth more than 6,500,000, and that at the end of 1968 it had been worth over 1 million. Mr Klein’s affidavit was read by Mr Morris Finer, QC, on the fifth day of the hearing in which Paul McCartney, a member of the Beatles, asks that a receiver should be appointed pending his claim for the legal break-up of the group partnership. Mr Klein is not a party to the application, but is represented by counsel with a watching brief and has sworn evidence in opposition to Paul’s claim. The claim is opposed by the remaining Beatles John Lennon, George Harrison, Ringo Starr and Apple Corps Ltd. Mr Klein said that in January 1970 John Lennon, George Harrison, and Ringo Starr bought 40,000 two-dollar shares in Mr Klein’s company, ABKCO. The shares had been offered because it had been suggested that ABKCO’s stock was going to rise enormously as a result of his dealings with the Beatles. Paul declined the offer. John Lennon took 20,000 shares and George and Ringo 10,000 each. Mr Klein said neither ABKCO nor he had received directly or indirectly any benefit from their association with the Beatles other than that set out in schedules in evidence. Referring to the’ Beatles’ financial situation, Mr Finer said : ” My clients say that thev regard this position as something which has essentially stemmed from the skilled service which thev have enjoyed since the middle of 1969, and which, whatever else happens in this case, they do not want interfered with.” Mr Finer produced a schedule setting out the Beatles’ income. He said that more than 8 millions of the 9,142,533 received since Mr Klein took over had been from record royalties. Mr Klein’s affidavit said the appointment of a receiver might have no direct effect on receipts from the Beatles’ records, but would undermine the financial and commercial status of the Beatle companies. The hearing continues today.

Last updated on April 27, 2022