Interview for Record Retailer

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In March 1969, Allen Klein was officially appointed to manage Apple’s business operations under a three-year management contract. Wasting no time, Klein found himself confronting a series of complex and pressing issues.

First among them was Nemperor Holdings, the new name given to Brian Epstein’s former company, NEMS Enterprises. Despite Epstein’s passing nearly two years prior, Nemperor remained the entity responsible for receiving all of The Beatles’ earnings and transferring them to Apple, after deducting a 25% management fee. And Nemperor had just been acquired by Triumph Investment Trust in February 1969.

Meanwhile, another bombshell landed when Dick James and Charles Silver — the original founders of Northern Songs Ltd., established in February 1963 to publish Lennon–McCartney songs — sold their controlling shares in the company to Associated Television (ATV). This unexpected move threatened John and Paul’s hold over their own catalog and blindsided the Beatles, who had been hoping to gain greater control over their music publishing rights.

Klein addressed these subjects, among other matters, in an interview with Record Retailer magazine in July 1969.

Originally Triumph Investments did not appear to want to talk to you, what changed their attitude and was the solution difficult to reach?

Of course they did not want to meet me. When he (Leonard Richenberg, Tl managing director) realised what the facts were, he was very pleased to meet me. They are a good company; they made a mistake.

The fight really was not against Triumph. He came to see me after he realised I was going to be around for a while. The first time was in May when we wanted to make our takeover; he called and said he wanted to talk. We established certain grounds for settling the matter. The reason it dragged on had nothing to do with any disagreement between the two of us. But certain items in the settlement — namely the Northern Songs’ shares — could have caused problems with the Takeover Panel.

Is the situation between the Beatles and ATV regarding control of Northern Songs now deadlocked, or are you making a new approach to solve it?

I promise you when that is taken care of, I will give you a statement. We did not take the option for games. The consortium shares have already been offered.

How is it that you appear to be disliked by the major record companies, yet topline artists flock to you for business management?

I came here and opened up a whole new world, by splitting off America, and we started making direct deals so the artists and record company had a relationship. Am I ruthless?

I don’t know what that means — does it mean true to a purpose without compromise? I make deals to force record companies to put up money so they have to run after it. Is that so terrible? I certainly can’t kill them. I can’t hit them. I can get a better deal with the artist than they would like to give. It’s always okay for a record company to say “yes, we will do our best” but that’s not good enough. I have never made a deal where anyone has not come out well.

Do you find any differences In dealing with British and American businessmen in the record industry and elsewhere?

You people have better manners, but you are are as devious as anyone else. Len Wood is an absolute gentleman. Louis Benjamin is a hustler — he does very well. Decca is a strange breed — I like Sir Edward. You know they will probably lose the Rolling Stones.

Do you consider the big record companies in the world could do more to tighten up distribution of international royalty payments? Do you look for unpaid royalties?

I used to do that. It is the nature of business. You have contracts which don’t reflect what happens. I do not think all the companies are that way and not in England as much as in America. People make mistakes. You don’t have the sales programmes in England which would lead to that.

With regard to your business relationship with the Beatles, who made the first approach?

John and I met first. I called him after I read his statement in the papers that Apple would go ‘broke’. I asked him “Do you need any help? I will be over in England, do you want to talk?” I met the other Beatles the day after I met him. It was a unanimous decision for me to be used. I wouldn’t begin unless they were with me 100 per cent.

Has it been a long standing ambition of yours to manage the Beatles?

Absolutely. I first approached Brian Epstein in 1964. I had a deal for them with RCA. It is amazing that I have got them.

What was your brief from the Beatles?

The first thing was to find out what they had and where they wanted to go — and then do it. The third thing, which was really the first, was to make for each one of them in cash after tax, as much money as everyone felt that they ought to have, and should have.

What Is your relationship with them now?

It gets closer.

How do you think the rumours of your departure came about?

Nobody called Apple or me to check. I think there are a lot of people who would like the Beatles and would like to see me go. As long as it is not the Beatles, I don’t care.

Does Apple, to become established as a major independent, need an experienced fulltime chief?

I would like to leave that. It will be taken care of. Apple is not a record company — it is a record production company and that is really all. The most important thing in the first instance is not to go off in 16 different directions, but to concentrate on the most important problem and make them (Beatles) well off so they don’t have to worry about it any more. That is the only thing I care about. It will be a good company — the talent is there.

Are the Beatles worthy of a renegotiated royalty agreement with EMI?

Absolutely — they are an institution. In the first place, they deserve it. It was made clear to Sir Joseph Lockwood by the Beatles and myself that the boys thought the agreement was supposed to be 70 sides or nine years whichever was the sooner. The 70 sides have now been recorded. Am I going to start a law suit? Of course, I’m not. We have things to give. There are no club rights; no repackaging rights. These are important things. We could guarantee them a certain amount of product.

I am really not unreasonable. I would never ask someone for something they could not give. EMI would want to put out records. Now that we have got the Nems affair out of the way, I think EMI is interested in obtaining additional considerations for themselves. It is not something under duress. They want to do what is best for the Beatles.

CBS offered a fortune when the Beatles original deal ran out in 1966. I would have stayed with EMI. I think they are the best company in Britain, but not the U.S.

Is there any chance of the Beatles appearing on a budget label?

Not if I can help it. They can’t right now. It is a bad thing for artists at the level in which I deal. Budget is good for old product but not for my artists. I repackage at full price everything of the Stones in America. As another example, the Best Of Donovan’ is an enormous smash.

In view of the Rolling Stones contract with Decca being due to expire In February, does this mean the group will launch their own Mother Earth label?

It is a good possibility. I am not really talking to Decca about it right now. Yes I have been talking to people. The original studio plan has fallen through.

Can the Beatles be managed by somebody not in the UK full-time?

They will get as much time as they need. So will the Stones.

Are you planning to live permanently in Britain?

No. If 60 per cent of the business is done in America, what are you going to do — neglect that?