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Allen Klein Biography

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Allen Klein (b. December 18, 1931) is a controversial American businessman and record label executive. His career highlights included celebrated clients such as The Beatles and The Rolling Stones. Many of his famous clients eventually turned against him, however, and he became involved in acrimonious legal battles against them.

During the filming of Rock and Roll Circus, Allen Klein and John Lennon met casually, but did not discuss business. Following the death of Brian Epstein in 1967, The Beatles had been without a manager per se, although NEMS, headed by Epstein's brother Clive, had been taking care of day-to-day business, with Peter Brown acting as liaison to both the Beatles and the Epsteins, and Paul McCartney steering the band artistically.

Without a performing schedule, and with recording and filming dates in their own hands, the Beatles had not needed a traditional kind of manager. They had, however, gradually lost many of the people Epstein had made business deals with early in their career, such as music publisher Dick James and financial adviser Dr. Walter Strach, which had secured the band financially. They were used to asking for something to be done, without thinking of the price; much of Apple Corps had been set up in this way. Epstein had been the one to put the brakes on spending, talk over practicalities, and say "no". This had been all but forgotten. Without a damper, the band had overspent, and overtrusted, and problems arose.

By 1969, Apple Corps was in a financial mess, and it was becoming obvious that a business brain was needed to sort things out. Several names were considered, including Lord Beeching. Paul McCartney favoured Lee Eastman (father of McCartney's wife, Linda) as the man for the job, a suggestion that did not sit well with the other three Beatles, as they felt that Eastman would be batting for McCartney's interests ahead of those of the rest of the group. Klein contacted Lennon after reading his press comment that the Beatles would be "broke in six months" if things continued as they were. Klein was willing to break precedent, and only take a commission on increased business; if Apple continued to lose money, he would be paid nothing.

After a meeting at Allen Klein's suite in the Dorchester Hotel (opposite London's Hyde Park), where Klein impressed Lennon with both his in-depth knowledge of Lennon's work (he could quote lyrics from all of his songs) and his "streetwise" attitude and language, Lennon convinced George Harrison and Ringo Starr that Klein should take over instead. McCartney agreed to pose for photographs with Klein as a show of unity, pretending to sign a new contract, but he never put his signature on the paper. This fundamental disagreement about who should manage them, fuelled by a decade-long build up of resentments and insecurity about other matters such as power and influence within the group, was one of the key factors in the eventual break-up of the Beatles.

In 1969, Klein re-negotiated their contract with EMI, granting them the highest royalties ever paid to an artist at that time; 69 cents per $6-7 album. In exchange, EMI was allowed to repackage earlier Beatles material as compilations, which Brian Epstein had not permitted. Klein oversaw the issuing of the single "Something"/"Come Together", at a crucial point when Apple needed income. He helped rescue the abandoned Get Back project (released as Let It Be…), by bringing Phil Spector to England to work with the band. He also transformed office habits at Apple, installing a time clock for the staff and insisting meals be pre-ordered from the building's kitchen (instead of cooked on demand). Klein slashed expenditures at Apple, cancelling payouts and charge accounts for many Beatles associates, and friends of friends, who had worked or consulted for the company.

On the other hand, Allen Klein also managed to alienate many of the people who had previously been part of the Beatles's business and personal circle, with his abrasive style of management and negotiation. His cost-cutting measures at Apple included what was considered by some as "cold-blooded" firing of many of the employees that had flocked to the band's experiment in "western Communism" (including the erratic Magic Alex, and Epstein's old friend Alistair Taylor).

Allen Klein also closed the Zapple Records imprint. He spoke occasionally at Apple and Beatles press conferences; a reporter for the London Evening Standard remarked later that Klein "must have set some kind of record for unprintable language" at one such conference. He was also unable to save Northern Songs from a buyout by ATV, which took away ownership of nearly all the band's song copyrights.

McCartney continued to distrust Allen Klein, though admitting to him at one point "If you are screwing us, I don't see how." Following their informal agreement to split in late 1969, he eventually sued the other three Beatles for what he called 'a divorce', and the Beatles as a business unit came to an end. McCartney has stated he chose to legally dissolve the Beatles rather than allow Klein to milk and diminish their artistic legacy, which (of all the Beatles) McCartney was most passionate and protective.

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