January 24, 1962: The Beatles sign their first contract with Brian Epstein
Paul then raised a late objection to Brian’s commission rate. The typed contract stated 10 percent, rising to 20 if their individual gross annual earnings exceeded £1,500, and Paul would later recall how his objection was based on the old tactic of holding out for less no matter what was being asked.
“He asked for 20 percent and I argued with him. I said, ‘Twenty, man? I thought managers only took 10 percent.’ He said, ‘No, it’s 20 these days.’ I said, ‘OK, maybe I’m not very modern.’”
It was a point on which Brian was prepared to concede. As signed, the contract has a penned amendment: 20 was crossed out and 15 written instead as the upper limit.
At 10 rising to 20 percent this would already have been a generous contract; at 10 rising to 15 it was a steal for the Beatles, and they’d no idea how much. It was standard for artists to pay two sets of commission, having not only a management contract but, separately an agency agreement; the managers took their cut for managing, agents took a further 10 percent for fixing all the paid work. Brian was shooting to do both jobs, providing the Beatles with this ambitious, all-inclusive service for the single 10–15 percent commission.
From Mark Lewisohn’s Tune In (Ch. 24) [x]