The Beatles sign their management contract with Brian Epstein

On this day, The Beatles signed an updated management contract with Brian Epstein, that would bind them till September 1967. They had previously signed the first contract on January 24, 1962.

Epstein formed a new company, NEMS Enterprises, to look after the Beatles and any other clients he might later sign. From that point onward, all of the money generated by the Beatles was funnelled directly into NEMS. In exchange, the four Beatles were each given a salary and, later, had their living expenses paid by the company, with any excess funds being deposited in banks or invested on behalf of the group.

[…] Despite sharing a name, NEMS Enterprises was not associated with the NEMS shops. There was a family connection, however, in that NEMS Enterprises had been partially funded by Brian’s younger brother, Clive, who, like Brian, worked at one of the NEMS stores. Shares of NEMS Enterprises were split between three parties, with Epstein controlling 70% of the company, Clive Epstein controlling 20% and the four Beatles each getting a 2.5% stake in the new venture.

[…] Receiving a 25% share of the Beatles’ gross income (the management deal was tiered so that there would be a 10% commission on earnings up to £400 a week, 20% for earnings up to £800 per week and 25% for earnings in excess of £800), Epstein was certainly very well compensated for his efforts.

From “Those Were The Days 2.0” by Stefan Granados

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