Chapter 28 - The Beatles, Apple, and the Business of Music Publishing

Summary

Following the unexpected death of their manager, Brian Epstein, in August 1967, the Beatles accelerated their plan to gain control of their own financial affairs. Epstein’s team at NEMS, the management company that managed the Beatles’ business affairs, had actually hatched this plan at least two years earlier as a way for John Lennon, Paul McCartney, George Harrison, and Ringo Starr to invest their income into a business venture, since the British government’s corporate tax rate was significantly lower than the individual rate. Consequently, the Beatles severed all ties with NEMS to focus their attention on their own company, named Apple Corps, which was founded in London in January 1968, with headquarters at 94 Baker Street. With regard to the company’s income (excluding songwriting royalties that were paid to the composer of a particular song), each of the Beatles would own 5 percent, while the new corporation – which would be owned collectively by all four Beatles – would own the remaining 80 percent.