Editing Brian Epstein (section)

==Business dealings==
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Epstein once offered all four Beatles a fixed wage of £50 a week for life ({{Inflation|UK|50|1961|r=-2|fmt=eq|cursign=£}}). Harrison remembered that he was earning £25 a week at the time ({{Inflation|UK|25|1961|r=-2|fmt=eq|cursign=£}}), which was more than the £10 a week that his father was earning ({{Inflation|UK|10|1961|r=-2|fmt=eq|cursign=£}}). The group declined Epstein's offer, believing that they were worth much more than £50 a week.<ref>{{cite news |url=http://news.bbc.co.uk/2/hi/entertainment/955196.stm |title=Epstein 'wanted Beatles fortune' |work=BBC News |access-date=26 May 2011 | date=3 October 2000}}</ref>

[[File:Brian Epstein 1934-1967 (Heritage Foundation).jpg|thumb|upright|Commemorative plaque in [[Argyll Street]], [[Soho]], London]]
NEMS had a staff of twenty-five at the time of its move from Liverpool to London in 1964.<ref name="FranklyBrian0047">{{cite web|url=https://www.bbc.co.uk/archive/mersey/5184.shtml |title=Frankly Speaking: Brian Epstein (time: 00.47) |publisher=BBC |date=23 March 1964 |access-date=2 July 2011}}</ref> NEMS booked the Beatles' concerts, and it also presented groups as an opening act. It accrued money as promoter, booking agent, and manager for all concerts.{{sfn|Brown|Gaines|2002|p=102}} The Beatles were constantly in demand by concert promoters, and Epstein took advantage of the situation to avoid paying some taxes by accepting "hidden" fees on the night of a performance, which he always kept in a brown paper bag.{{sfn|Brown|Gaines|2002|p=110}}

Epstein also successfully managed [[Gerry and the Pacemakers]], [[Billy J. Kramer]] [[The Dakotas (band)|and the Dakotas]] (who had four hits with Lennon–McCartney songs), [[the Fourmost]] (Lennon wrote their first two singles), [[the Cyrkle]] (Epstein's first American group), and [[Cilla Black]] (who was Epstein's only female artist), as well as [[Tommy Quickly]] and [[Sounds Incorporated]] (later known as [[Sounds Inc.]]).<ref name="FranklyBrian0030">{{cite web|url=https://www.bbc.co.uk/archive/mersey/5184.shtml |title=Frankly Speaking: Brian Epstein (time: 00.30) |publisher=BBC |date=23 March 1964 |access-date=2 July 2011}}</ref> He also managed [[the Moody Blues]] for around a year from late 1965 to late 1966.<ref>{{cite AV media notes|title=The Moody Blues: The Magnificent Moodies 50th Anniversary Edition liner notes page 19}}</ref> Epstein sent his roster of artists on "package tours" around the UK, a common practice at the time. This involved short sets by each act, alternating with a compère or a comedian.<ref name="BrianEpsteinDies" /> Epstein once revealed that even though he was entitled to be reimbursed by acts for expenses incurred, he paid for his own flights to and from the United States, as he did not see himself as being part of a touring group.<ref name="FranklyBrian0148">{{cite web|url=https://www.bbc.co.uk/archive/mersey/5184.shtml |title=Frankly Speaking: Brian Epstein (time: 01.48) |publisher=BBC |date=23 March 1964 |access-date=2 July 2011}}</ref> Photographs, transport, and international telephone calls were paid from his own 25 percent share in profits.<ref name="FranklyBrian0229">{{cite web|url=https://www.bbc.co.uk/archive/mersey/5184.shtml |title=Frankly Speaking: Brian Epstein (time: 02.29) |publisher=BBC |date=23 March 1964 |access-date=2 July 2011}}</ref>

The Beatles toured the [[Philippines]] in July 1966, playing two shows at the [[Rizal Memorial Stadium|Rizal Memorial Football Stadium]] in Manila.<ref name="ThisDayinMusic">{{cite web |url=http://www.gibson.com/en-us/Lifestyle/News/day-in-music-0704-2011/ |archive-url=https://archive.today/20130124010909/http://www.gibson.com/en-us/Lifestyle/News/day-in-music-0704-2011/ |archive-date=24 January 2013 |title=This Day in Music: 4 July |publisher=This Day in Music |date=7 April 2011 |access-date=4 July 2011 }}</ref> Epstein unintentionally snubbed the nation's first lady [[Imelda Marcos]] when presented with an invitation to a breakfast party.{{sfn|Spitz|2005|p=619}} He had politely declined on behalf of the group, as it was their policy never to accept such official invitations.{{sfn|Spitz|2005|p=620}} The Beatles and their entourage were ejected from their hotel on the same day and given a police escort to the airport, even though Epstein had publicly apologised for the misunderstanding in a televised statement, which was not seen or heard because of static.<ref name="ThisDayinMusic" /> The entourage boarded the plane for home, but Epstein and Beatles' assistant [[Mal Evans]] were ordered off, both believing that they would not be allowed back on the plane.{{sfn|Spitz|2005|p=624}} Epstein was forced to give the tax authorities £6,800 worth of Philippine peso notes earned from the Manila shows and to sign a tax bond verifying the exchange before being allowed back on the plane with Evans.{{sfn|Spitz|2005|p=625}}

Epstein added the [[Vic Lewis]] Organisation to NEMS in 1966,<ref name="BrianEpsteinDies" /> and later brought impresario [[Robert Stigwood]] in as a manager. He once offered to sell the control of NEMS to Stigwood, without telling any of his artists about the offer.{{sfn|Spitz|2005|pp=725–726}} McCartney was taking a more active interest in NEMS' finances, as it became known that some artists with more ruthless managers claimed to be benefiting from more commercially advantageous terms, such as the [[Rolling Stones]] under the management of [[Allen Klein]]. After Epstein's death, Clive Epstein assumed control of NEMS as the company's second-largest shareholder.<ref name="Epsteindeathquery">{{Cite news |title=Epstein death query |work=[[Ottawa Citizen]] |page=3|date=29 August 1967}}</ref> Stigwood then tried to take over management of NEMS but all four Beatles vigorously objected, with Lennon saying, "We don't know you. Why would we do this?"{{sfn|Spitz|2005|pp=725–726}}

McCartney admitted that they had always signed all the contracts that Epstein presented to them without reading them first, but after Epstein's death Lennon complained, "Well, he was alright. I've found out since, of course, that he wasn't quite as honest to us as he made out."  Despite this, other interviews with Lennon report him as being loyal to Epstein's memory: "We had complete faith in him when he was running us. To us, he was the expert."{{sfn|Miles|1997|p=146}}{{sfn|McCabe|Schonfeld|1984|p=90}} When asked in 1964 about his standing as a manager or businessman, Epstein replied, "Fair, as a businessman, fair. I've got a business background, and probably a reasonable business brain. I'm no, sort of, genius [laughter]." Asked about his deficiencies, Epstein replied, "I'm probably too conscious of ideas, rather than finance behind ideas."<ref name="FranklyBrian2816">{{cite web|url=https://www.bbc.co.uk/archive/mersey/5184.shtml |title=Frankly Speaking: Brian Epstein (time: 28.16) |publisher=BBC |date=23 March 1964 |access-date=2 July 2011}}</ref>

According to ''[[Time (magazine)|Time]]'', Epstein made $14 million in five years while managing The Beatles.<ref>{{cite magazine|url=https://www.worldradiohistory.com/hd2/IDX-Business/Music/Archive-RPM-IDX/IDX/60s/RPM-1967-09-23-OCR-Page-0001.pdf|title=Brian Epstein - The Promoter|magazine=[[RPM (magazine)|RPM]]|date=23 September 1967|access-date=12 March 2024}}</ref>

===Merchandising===
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{{Main|Seltaeb}}
Before the Beatles achieved nationwide success in [[UK|Britain]], Epstein had permitted a company (run by his cousins and initially catering to fan club members),<ref name="Mojop100">Mojo Magazine (2002). ''Special Limited Edition No. M-04951 '', p.&nbsp;100</ref> to produce Beatles sweaters for 30 [[shillings]] (£1.50) and badges for 6 [[Penny (British pre-decimal coin)|pence (6d)]] (2½p). It sold 15,000 sweaters and 50,000 badges as the group's popularity grew.{{sfn|Coleman|1989|p=35}} 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.{{sfn|Spitz|2005|p=465}}

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 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,{{sfn|Spitz|2005|pp=465–466}} but David Jacobs subsequently renegotiated the royalty rate to 49% at Epstein's behest in August 1964.{{sfn|Spitz|2005|p=543}}
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 [[Confidence trick|hustlers]].{{sfn|Spitz|2005|pp=468–464}}

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.{{sfn|Spitz|2005|p=464–465}} Hanson later worked solely with Epstein in his Albemarle Street office in London, which was separate from the NEMS office.{{sfn|Spitz|2005|p=667}} Lennon later said, "On the business end he [Epstein] ripped us off on the Seltaeb thing."{{sfn|McCabe|Schonfeld|1984|p=91}} 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."<ref name="GetBackandothersetbacks">{{cite news |first=John |last=Robinson |url=https://www.theguardian.com/music/2003/nov/22/popandrock.thebeatles |title=Get Back and other setbacks |work=The Guardian |date=2 November 2003 |access-date=26 May 2011 |location=London}}</ref>

===Lenmac===
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Epstein asked chartered accountant James Trevor Isherwood to set up a company to collect Lennon and McCartney's [[PRS for Music|PRS]] payment, 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.{{sfn|Miles|1997|p=144}} All of Epstein's expenses were deducted from his artists' gross income, including office rental, staff wages, travel, telephone costs, and entertaining expenses.{{sfn|Miles|1997|p=145}} 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.{{sfn|Miles|1997|p=405}}

===Publishing===
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{{Main|Northern Songs}}
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.{{sfn|Miles|1997|p=147}} 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 [[Initial public offering|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.{{sfn|Miles|1997|pp=166–167}}

===Promoter and presenter===
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[[File:Brian Epstein Hullabaloo 1965.jpg|thumb|upright|Epstein hosting the teen music program ''[[Hullabaloo (TV series)|Hullabaloo]]'', 8 January 1965]]
After settling in London in 1965, Epstein rented an office in [[Monmouth Street, London|Monmouth Street]], and later bought the lease of the [[Saville Theatre]] on [[Shaftesbury Avenue]].<ref name=LLoyd>{{cite web |url=http://www.arthurlloyd.co.uk/SavilleTheatre.htm |title=Saville Theatre History |publisher=Arthur Lloyd |access-date=26 May 2011}}</ref><ref name="OnThisDayBBC">{{cite news|url=http://news.bbc.co.uk/onthisday/hi/dates/stories/august/27/newsid_3767000/3767499.stm |title=1967: Beatles' manager Epstein dies|publisher=BBC |access-date=2 July 2011|date=27 August 1967}}</ref> 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.{{sfn|Spitz|2005|pp=648–649}} 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.<ref name="CurtaindownSaville">{{Cite news |title=Epstein sacks for ringing down the curtain on pop singer|work=[[The Glasgow Herald]] |page=22|date=21 February 1967}}</ref>

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 (TV series)|Hullabaloo]]'', filming his appearances in the UK.<ref name="EpsteinCom" /><ref>{{cite web|last=King|first=Susan|title=Retro: What's All the Hullabaloo?|date=February 26, 1995|work=Los Angeles Times|url=https://www.latimes.com/archives/la-xpm-1995-02-26-tv-36137-story.html|access-date=February 3, 2022}}</ref>