The Beatles sign the new Capitol / EMI agreement

In January 1967, Brian Epstein negotiated a new nine-year recording contract between The Beatles and EMI/Capitol. The agreement significantly improved the band’s position compared to the previous contract signed in 1962: it increased their royalty rate and granted them greater artistic control. Notably, it removed Capitol Records’ longstanding right to alter album artwork and track listings for the American market. In return, The Beatles were bound to EMI until 1976.

Following Epstein’s death in August 1967, and after a period of self-management, Allen Klein was officially appointed The Beatles’ business manager in May 1969. With the band’s commercial success continuing — highlighted by “Sgt. Pepper’s Lonely Hearts Club Band,” the “Magical Mystery Tour” EP, The White Album, and the “Yellow Submarine” soundtrack — Klein pushed for a renegotiation of the 1967 contract.

The immense success of the White Album gave Klein strong leverage, which he used to secure improved financial terms and greater control for the band. The new deal also allowed Apple Corps to oversee U.S. manufacturing and distribution of Beatles records, marking a turning point in the group’s business independence.

The revised contract was reviewed on September 17, 1969, and signed on this day, September 20, by Paul McCartney — despite his ongoing mistrust of Klein — along with John Lennon and Ringo Starr. George Harrison signed a few days later.

Even McCartney congratulated me over the new record deal.

Allen Klein – From “The Beatles: Off the Record” by Keith Badman, 2008

I did a great deal with EMI and Capitol. They knew they couldn’t stop an artist recording. So, up went the royalty rates. We account for over fifty per cent of Capitol Record’s business. They’re just our distributors. I did Capitol a great favour. I delivered them product. These boys want to work, but you have to motivate them. They won’t work while a record company is screwing them. But, when somebody gets rid of the bullshit, and they’re getting a fair deal, they’ll work.

Allen Klein – From “The Beatles: Off the Record” by Keith Badman, 2008

I happened to be in the building and they said, would you take a picture? And I did. It was all very haphazard. I didn’t know what it was for. To be honest, I thought they were signing a napkin or something. But I got the feeling there was a very bad atmosphere in the room. You could tell it wasn’t a happy place to be.

David Nutter – Photographer – From “And in the End: The Last Days of the Beatles” by Ken McNab, 2019

STANDING AT CEREMONY

Allen Klein (center), president of Abkco Industries, The Beatles’ business manager, has completed negotiations for a new recording contract between The Beatles and EMI, in addition to a new Apple/ Capitol distribution agreement. Left to right are Yoko Ono Lennon leaning on John Lennon’s shoulders as he holds new contract, Paul McCartney and Ringo Starr.

From Cash Box Magazine – October 11, 1969

Going further

The Beatles Diary Volume 1: The Beatles Years

With greatly expanded text, this is the most revealing and frank personal 30-year chronicle of the group ever written. Insider Barry Miles covers the Beatles story from childhood to the break-up of the group.

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