Brian Epstein

In an afternoon meeting with the group at NEMS on 3 December 1961, Epstein proposed the idea of managing the Beatles.[39] John Lennon, George Harrison, and Pete Best arrived late for the meeting, as they had been drinking at The Grapes pub in Mathew Street. McCartney also did not arrive on time because he had just got up and was "taking a bath", as Harrison explained. Epstein was upset, but Harrison placated him by saying, "He may be late, but he'll be very clean."[47] Lennon had invited Wooler to be at the meeting so that he could give his opinion of Epstein, but he introduced Wooler by saying, "This is me dad."[48] Epstein was reticent throughout the short meeting, only asking if they had a manager. After learning that they had not, he said, "It seems to me that with everything going on, someone ought to be looking after you."[49] He had further meetings with the group on 6 and 10 December 1961.[50]

McCartney, Harrison, and Best were under 21 and therefore needed the consent of their parents to enter into a contract. Best and his mother—Mona Best, owner of the Casbah Coffee Club—were impressed with Epstein's professional image as were the other Beatles, because he was a businessman, wore expensive suits, and owned a large car. Best's mother said that Epstein "could be good for them [the Beatles]".[51] McCartney's father was skeptical about a Jewish manager and warned his son to be careful about finances.[52] Lennon's aunt and guardian, Mimi Smith, was against the idea, believing that Epstein would lose interest when something attracted his attention, but Lennon, who had just turned 21, ignored his aunt's advice.[53]

The Beatles signed a five-year contract with Epstein on 24 January 1962[28] giving Epstein 10 to 15 per cent of their income. They signed a new contract in October 1962 which gave Epstein 15, 20, or 25 per cent of revenues, depending on how much he helped the band earn.[54] The Beatles would then share any income after various expenses had been deducted.[50] Epstein then formed a management company, NEMS Enterprises, telling his parents that managing the group was only a part-time occupation and would not interfere with the family business.[40]

The Beatles signed Epstein's first management contract, but Epstein did not. He later told Taylor, "Well, if they ever want to tear it up, they can hold me but I can't hold them".[43] (Note: English law would have enforced the contract through the doctrine of part performance.)[55] The contract stated that Epstein would receive a management commission of 25 per cent of the group's gross income after a certain financial threshold had been reached.[56] The Beatles argued for a smaller percentage, but Epstein pointed out that he had been paying their expenses for months without receiving anything in return.[57] On 1 October 1962, four days before the release of "Love Me Do", Epstein signed Lennon and McCartney to a three-year NEMS publishing contract.[58][59][60]

In 1963, Epstein advised the creation of Northern Songs, a publishing company that would control the copyrights of all Lennon–McCartney compositions recorded between 1963 and 1973. Music publisher Dick James and his partner Charles Silver owned 51 per cent of the company, Lennon and McCartney 20 per cent each, and Epstein 9 per cent.[61] By 1969, Lennon and McCartney had lost control of all publishing rights to ATV Music Publishing. Epstein's death in 1967 marked the beginning of the group's dissolution and had a profound effect on each Beatle.[62]

Epstein had no prior experience of artist management, yet he had a strong influence on the band's early dress code and stage demeanor.[43] They had previously worn blue jeans and leather jackets, and they would stop and start songs when they felt like it or when an audience member requested a certain song. David Pomerran Szatmary states that when Epstein first saw them at the Cavern Club he thought, "They were a scruffy crowd in leather, and they were not very tidy and not very clean. They smoked as they played and they ate and talked and pretended to hit each other."[63] Epstein encouraged them to wear suits and ties, insisted that they stop swearing, smoking, drinking, or eating on stage, and also suggested the famous synchronised bow at the end of their performances.[64] McCartney was the first to agree with Epstein's suggestions, believing that they reflected Epstein's RADA training.[65] Epstein explained that the process from leather jackets and jeans to suits took some time: "I encouraged them, at first, to get out of the leather jackets and jeans, and I wouldn't allow them to appear in jeans after a short time, and then, after that step, I got them to wear sweaters on stage, and then, very reluctantly, eventually, suits."[66] Epstein took the group to Wirral to see his friend, master tailor Beno Dorn,[67][68] who made them their first suits based on a design they had previously seen,[69] but which Epstein approved of: "I thought it was an excellent design at the time."[70]

Lennon resisted wearing suits and ties, but later said, "I'll wear a suit; I'll wear a bloody balloon if somebody's going to pay me."[71] Epstein began seeking publicity by "charming and smarming ... the newspaper people", as Lennon said in 1972.[72] According to McCartney, "The gigs went up in stature and though the pay went up only a little bit, it did go up"; they were "now playing better places".[73] The group was now far more organised, having one single diary in which to record bookings, rather than using whoever's diary was at hand.[73] The group usually called Epstein "Mr. Epstein" or "Brian" in interviews, but in private the group abbreviated his name to "Eppy" or "Bri".[74]

The telegram that Epstein sent to Mersey Beat newspaper in Liverpool to announce that he had secured the Beatles their first recording contract

Epstein made numerous trips to London to visit record companies in the hope of securing a record contract, but many rejected him, including Columbia, Pye, Philips, Oriole, and most notoriously Decca.[75] On 13 December 1961, at Epstein's invitation, Mike Smith of Decca travelled from London to Liverpool to watch the group at the Cavern, which led to an audition in London on 1 January 1962 (see The Beatles' Decca audition).[50] Decca informed Epstein one month later that the audition tapes had been rejected. The Beatles later found out that Epstein had paid Decca producer Tony Meehan (ex-drummer of the Shadows) to produce the studio recordings.[75] While Epstein was negotiating with Decca he also approached Ron White, an EMI marketing executive, who contacted EMI producers Norrie Paramor, Walter Ridley, and Norman Newell, but they all declined to record the group.[76] White could not contact EMI's fourth staff producer George Martin, as he was on holiday.[77]

On 8 May 1962, Epstein visited the HMV store (owned by EMI) in 363 Oxford Street, London to have the Decca tape transferred to 78 rpm acetates. An HMV disc-cutter named Jim Foy liked the recordings, suggesting that Epstein should contact Sid Coleman, the head of EMI's record publishing division, which controlled the publishing company Ardmore & Beechwood. Coleman liked the recordings and sent Epstein to Martin, the A&R manager of Parlophone.[78] On the next day, 9 May 1962, Epstein met Martin at EMI's Abbey Road Studios.

Supposedly, Martin had no intention of signing the Beatles after listening to the Decca recordings, but he offered a contract after learning that Epstein would cancel all his substantial NEMS business with EMI.[78][79] Martin denied this account by saying that Epstein's conviction that the Beatles would become internationally famous finally convinced him to offer a recording contract.[43] He also later admitted that EMI had "nothing to lose" by signing a contract with the Beatles, as the terms of payment were negligible. At this point, almost every other British record company had rejected the group, and Martin had never heard the group live. The Beatles were eventually signed to EMI's small Parlophone label, which had very little experience with pop or rock artists. Upon signing the contract, Epstein immediately sent a telegram to the Beatles (who were in Hamburg) and to the Mersey Beat music journal in Liverpool.[80]

The recording contract gave the Beatles one penny (1d) for each record sold, which was split among the four members, meaning that each earned one farthing per copy. The royalty rate was further reduced for singles sold outside the UK; the group received half of one penny per single, which was again split amongst the whole group.[81] Martin scheduled the first recording session to be on 6 June 1962 at Abbey Road Studios. Epstein later renegotiated EMI's royalty rate and, on 27 January 1967 the Beatles signed a new nine-year contract with EMI. The contract stipulated that 25 per cent would be paid to NEMS for the full nine years even if the Beatles decided not to renew their management contract with Epstein, which was up for renewal later that year.[82]

After the first recording session on 6 June 1962 Martin had one reservation, as he felt that using an experienced studio session drummer rather than Pete Best would improve the recording (this was in accordance with normal practice at the time).[80] Lennon, McCartney, and Harrison asked Epstein to sack Best when they learned that Martin wanted to replace him on their recordings.[43] Epstein agonised about the decision, asking the Cavern's disc jockey Bob Wooler if it was a good idea. Wooler replied that Best was "very popular with the fans", who would not like it at all.[83] Epstein dismissed Best on 16 August, over two and half months after the first recording session at EMI studios. Best was never given an explanation for his dismissal.[83]

Epstein initially offered the vacant position to Johnny Hutchinson of the Big Three, a group that Epstein managed at that time as well. Hutchinson turned down the offer, saying, "Pete Best is a very good friend of mine. I couldn't do the dirty on him"—although Hutchinson did play for The Beatles at short notice when Best did not turn up on the evening of his dismissal and for two subsequent bookings, until Ringo Starr was able to join.[84] Starr was well known to the group, as he was then playing with Rory Storm and the Hurricanes, the resident group at Butlins' holiday complex in Skegness. He had also occasionally replaced Best when the drummer was ill, and had performed at a recording session with Lennon, McCartney, and Harrison in Hamburg.[80]

The Beatles made their last official live appearance in Britain on 1 May 1966, at the NME Annual Poll-Winners' All-Star Concert at the Empire Pool, Wembley Park. Although the concert was televised, the cameras were switched off while the Beatles played, because Brian Epstein and ABC TV had failed to agree over terms. They were filmed receiving their awards, however.[85]

The Beatles' hectic schedule kept Epstein very busy between 1963 and 1965 with touring plus television and film work. Their last live concert was at Candlestick Park in San Francisco on 29 August 1966, and Epstein's management duties then changed to reflect the changing nature of their career. He pressured them to continue touring, but they steadfastly refused.[86]

Before the Beatles achieved nationwide success in Britain, Epstein had permitted a company (run by his cousins and initially catering to fan club members),[105] to produce Beatles sweaters for 30 shillings (£1.50) and badges for 6 pence (6d) (2½p). It sold 15,000 sweaters and 50,000 badges as the group's popularity grew.[106] When Beatlemania swept the UK in November 1963, Epstein was besieged by novelty-goods companies desperate to use the Beatles name on plastic guitars, drums, disc racks, badges, belts and other merchandise. Epstein refused to allow the Beatles to endorse any product directly, but through NEMS Enterprises he granted discretionary licences to companies who were able to produce good-quality products at a fair price, even though many companies were already selling products without a licence.[107]

During the first Beatles trip to the United States, merchandisers pitched many products to Epstein, including Beatles clocks, pens, cigarette lighters, plastic wigs, bracelets, games, etc., but he rejected them all. This was because he had already allowed David Jacobs, the lawyer for NEMS, to give away 90 per cent of merchandising rights to one Nicky Byrne, in the UK. This was later deemed to be a disastrous mistake, as it left only 10 per cent for Epstein, NEMS and the Beatles.[108] Byrne then took over Epstein's Stramsact merchandising in the UK and set up Seltaeb (Beatles spelled backwards) in the United States. While the Beatles were ensconced in the Plaza Hotel in New York City, Epstein was further besieged by calls and visits from promoters, retailers, television commentators and hustlers.[109]

Mindful of the number of records the group was selling in the United States, Capitol Records sent a well-spoken Yorkshire woman, Wendy Hanson, to the Plaza Hotel to act as Epstein's secretary and to filter his calls.[110] Hanson later worked solely with Epstein in his Albemarle Street office in London, which was separate from the NEMS office.[111] Lennon later said, "On the business end he [Epstein] ripped us off on the Seltaeb thing."[112] McCartney said years later, "He [Epstein] looked to his dad for business advice, and his dad knew how to run a furniture store in Liverpool."[113]

Epstein asked chartered accountant James Trevor Isherwood to set up a company to collect Lennon and McCartney's PRS payments—called Lenmac—which he did on 12 May 1964. When he first visited Epstein's office, Isherwood was surprised to learn that Epstein took 25 per cent of the gross income, and not the 10 per cent that he believed most other managers received at that time.[114] All of Epstein's expenses were deducted from his artists' gross income, including office rental, staff wages, travel, telephone costs, and entertaining expenses.[115] Before his death, Epstein knew that the renegotiation of his management contract (up for renewal on 30 September 1967) would lower his management fee from 25 to 10 per cent, and that NEMS would no longer receive a share of the Beatles' performance fees, reducing its revenues still further.[116]

The Beatles entered into a publishing agreement with Dick James Music (DJM), so James set up a company called Northern Songs. James and his financial partner and accountant, Charles Silver, would each receive 25 per cent of the shares. Lennon and McCartney received 20 per cent each, with Epstein receiving the remaining 10 per cent.[117] The Beatles' PRS income increased rapidly, so Epstein asked Isherwood to devise a way of avoiding the tax that Lennon and McCartney would owe. Isherwood suggested a stock market flotation for Northern Songs. He also suggested to Epstein that during the flotation Lennon and McCartney should move to houses near Isherwood's own in Esher. Lennon, Harrison and Starr agreed, while Epstein and McCartney remained in London.[118]

Epstein hosting teen music program Hullabaloo, 8 January 1965

After settling in London in 1965, Epstein rented an office in Monmouth Street, and later bought the lease of the Saville Theatre on Shaftesbury Avenue.[119][120] He promoted new works by writers such as Arnold Wesker in productions that occasionally fell foul of the Lord Chamberlain for including "obscene" content or nudity. In 1966 Epstein reinvented it as a music venue featuring various US acts.[121] On 20 February 1967 Epstein sacked the manager of the theatre, Michael Bullock, for lowering the safety curtain the previous day shortly before the end of a Chuck Berry concert that Epstein was attending with Lennon and Starr. Two fans had climbed onto the stage to dance, the curtain came down, and they were pushed from the stage. Although Bullock had not given the order, he was held responsible.[122] In the wake of the Beatles' success Epstein was asked to appear on several music-based TV programmes in Britain. He also hosted a regular part of the US television show Hullabaloo, filming his appearances in the UK.[43]

Epstein's homosexuality was not publicly known until some years after his death, although it had been an open secret among his friends and business associates.[28]

While Epstein was in the British Army, he commissioned a tailor to make him an officer's uniform. He wore the uniform when cruising the bars of London, but was arrested one night at the Army and Navy Club in Piccadilly by the military police for impersonating an officer. Epstein managed to avoid a court martial by agreeing to see an army psychiatrist, who learned of Epstein's sexuality.[127] After ten months he was discharged from the army on medical grounds for being "emotionally and mentally unfit". Epstein later stated that his first homosexual experience was when he returned to Liverpool after being discharged.[18][128]

Epstein spent a year studying acting at RADA, but dropped out shortly after his arrest for "persistent importuning" outside a men's public toilet in Swiss Cottage, London. Cottaging, as it was called, was one of the few public ways that gay and bisexual men could meet at the time, especially if they were closeted.[129] When Epstein first saw the Beatles perform he noticed their stage attire first, saying, "They were rather scruffily dressed, in the nicest possible way, or I should say in the most attractive way—black leather jackets, jeans, long hair of course."[130] McCartney said that when Epstein started to manage the Beatles they knew that he was homosexual but did not care, because he encouraged them professionally and offered them access to previously "off-limits" social circles.[28]

Although Lennon often made sarcastic comments about Epstein's homosexuality to friends and to Epstein personally, no one outside the group's inner circle was allowed to comment. Ian Sharp, one of Lennon's art-school friends, once made a sarcastic remark about Epstein, saying, "Which one of you [Beatles] does he fancy?" Sharp was sent a letter by Epstein's office within 48 hours that demanded a complete apology.[71] Sharp apologised, but was then completely ostracised. McCartney sent him a letter directing him to have no contact with any of them in the future.[131] Epstein went on holiday to places such as Amsterdam, Torremolinos and Barcelona or Manchester at weekends, as the attitude to homosexuals there was more tolerant than in Liverpool, even though Liverpool did have several gay bars.[129]

In his autobiography, Pete Best stated that Epstein drove them both to Blackpool one evening where Epstein expressed his "very fond admiration." Epstein then supposedly said, "Would you find it embarrassing if I ask you to stay in a hotel overnight?" Best replied that he was not interested, and the two never mentioned the incident again.[71] There were reports of a brief sexual encounter between Lennon and Epstein during a four-day holiday in Barcelona in April 1963. Lennon always denied the rumours, telling Playboy in 1980: "Well, it was almost a love affair, but not quite. It was never consummated ... but we did have a pretty intense relationship." Lennon's first wife Cynthia also maintains that Lennon's relationship with Epstein was platonic.[132] A fictionalised account of the Spanish holiday is featured in the 1991 film The Hours and Times.[133]

After the start of his management career, Epstein started taking stimulants, usually Preludin, which did not require a prescription at the time. Lennon, McCartney, Harrison, and Starr had also taken it since their days in Hamburg. Epstein explained his use of the drug as the only means of staying awake at night during numerous concert tours.[134] In 1964 Peter Brown suspected that Epstein was taking too many pills, as he would often cough at parties, which Brown realised was Epstein's way of secretly putting pills into his mouth without anyone noticing.[135] McCartney often met Epstein at late night clubs in London, and remembered that Epstein would often grind his jaws (possibly due to bruxism), once saying to him, "Ugghhh, the pills".[136] Epstein also developed dependencies on the drug carbromal, a barbiturate-like sedative/hypnotic drug.

In 1964, after having been introduced to cannabis by Bob Dylan in New York, Epstein was observed by McCartney standing in front of a mirror, pointing at himself and repeatedly saying "Jew!", while laughing loudly, which McCartney found hilarious and "very liberating".[137] Epstein later became heavily involved in the 1960s drug scene. During the four months when the Beatles' album Sgt. Pepper was being recorded, Epstein spent his time on holiday, or at the Priory Clinic in Putney, where he tried unsuccessfully to curb his drug use. He left the Priory to attend the Sgt. Pepper launch party at his house on 24 Chapel Street, but returned to the Priory immediately after.[138][139]

24 Chapel Street, London, where Epstein lived, and later died

Epstein added his name to an advertisement that appeared in The Times on 24 July 1967, which called for the legalisation of cannabis, the release of all prisoners imprisoned because of possession, and research into marijuana's medical uses. The advertisement was sponsored by a group called Soma and was signed by sixty-five people, including the Beatles, Scottish psychiatrist R. D. Laing, sixteen doctors, and two members of parliament.[140] Epstein responded to questions about the advertisement by saying, "My opinion is that pot smoking is definitely less harmful than drinking alcohol. I am not addicted to either, but I have been very drunk and very 'high'."[92] In June 1967, after McCartney had admitted to LSD use, Epstein defended him to the media, stating that he too had taken the drug.[141]

In August 1965, the Beatles and Epstein visited Elvis Presley at his house in Perugia Way in Los Angeles, where Elvis's manager, Colonel Tom Parker, set up a roulette wheel and several packs of playing cards. Epstein immediately asked to play, as he was known for his love of gambling.[142] McCartney frequently visited gambling clubs in London, such as Epstein's favourite club Curzon House,[143] where he often ran into Epstein.[136] He once saw Epstein put a Dunhill lighter worth £100 (equivalent to £2,000 in 2019) on the table, then lose it during a game of cards. Epstein often lost thousands of pounds by playing baccarat or chemin de fer (the original version of baccarat when it was introduced in France), but would stay at Curzon House the whole evening, eating an expensive meal and drinking fine wines. The club never presented Epstein with a bill, as they knew he lost so much in the casino.[136]