The Beatles and Brian Epstein sign a nine-year contract with EMI

The Beatles and their manager Brian Epstein signed a nine-year contract with EMI Records on 27 January 1967.

The band had signed with EMI in 1962, with terms heavily benefiting the record company. However, as the band’s popularity showed no signs of abating, Epstein sought to negotiate a new contract offering better terms.

Brian set up a ten-year contract, which we never realized. We signed just millions and millions and millions of documents. I remember Neil coming round with it all, and all I asked him, ‘Is this all right to sign?’ and Neil said, ‘Yeah.’ So, I signed them all. It turned out later, there was a ten-year Beatles contract amongst all those documents. In setting up the company, they thought they had to have some goodwill from these lads, so they tied us together for ten years.

The new contract introduced several key changes:

The Beatles would be signed to EMI until 26 January 1976. Under the terms, they were required to deliver 70 recordings over five years. The new contract also anticipated new solo careers, by allowing each band member to fulfil the contractual obligations.

In turn, The Beatles’ royalty rate increased and they had greater artistic control. Crucially, this prevented Capitol Records in North America from changing album artwork or track listings.

Epstein’s company, NEMS Enterprises, was to receive 25% of The Beatles’ royalties until 1976, regardless of whether the band renewed their management contract which was due to expire in September 1967. Epstein, who died in August 1967, did not draw The Beatles’ attention to this clause.

I never knew the truth of that. I always used to say – one of the words that I’ve used ever since about Brian is that he was green – I never realized how green he was. To us, he was a sophisticated businessman, but ever since I’ve been in the London business scene and understood that when it becomes the norm, you realize that the sophisticated guy coming down isn’t as sophisticated as you think he is. He was provincial, and so certainly his deals were pretty provincial – you can see that now. I never blamed him for it. I thought, actually, that it was amazing that he even did so well.