A 1977 document that settled a lawsuit between the Beatles
and Allen Klein and also ended Klein's stormy association with the
Beatles is being sold by Moments in Time, the company has announced. The
asking price is $95,000.
The settlement was signed by Lennon and Klein on January 8, 1977, at New York City’s Plaza Hotel, the same building where The Beatles stayed during their historic first trip to the Big Apple in 1964.
The settlement was signed by Lennon and Klein on January 8, 1977, at New York City’s Plaza Hotel, the same building where The Beatles stayed during their historic first trip to the Big Apple in 1964.
Allen Klein, John Lennon, Yoko Ono in 1969 |
The suit was filed in 1973, when the
Beatles decided to not renew Klein's contract. Klein promptly sued them
for $19 million (roughly $75.3 million today). According to the company,
the settlement, made between Apple Corps Ltd., Klein's ABKCO Industries
Inc. and Klein, dated Jan. 8, 1977, ruled that Apple had to pay Allen
Klein and ABKCO just over $5 million (or roughly $19.8 million now)
while Klein had to pay out a total of $800,000 (roughly $3.2 million
now). According to a 1977 report on the settlement in Billboard, that money was divided between Harrisongs Ltd., Richard Starkey (Ringo Starr's real name), Apple Films Ltd. and Apple Records.
George sign breakup papers |
The
agreement said that it released Apple from “any liabiity whatsoever”
related to the relationship of the Beatles and Klein. The suit cost
ABKCO $1.2 million in legal fees over a year from Sept. 30, 1975. Paul McCartney
was not involved in the suit or the settlement but was “delighted to
see his friends end this problem,” according to Lee Eastman of Eastman
and Eastman, who represented him.
In Fred Goodman's recently released biography of Klein, titled Allen Klein: The Man Who Bailed Out the Beatles, Made the Stones, and Transformed Rock & Roll,
the author notes that Klein, who was said to have conducted
Kissinger-like negotiations, made a non-negotiable demand in settling
the suit. “John has to have dinner with me tonight!,” Klein is quoted by
Goodman. His attorney tried to talk him out of it, saying Lennon
wouldn't agree. “No dinner, no deal. Just go tell him,” Klein insisted,
according to Goodman. According to Moments in Time, he got his wish. Klein, Lennon and Yoko Ono were later pictured by photographer Bob Gruen with the document on a loaf of bread.
The
Beatles' relationship with Klein began Jan. 28, 1969, at a meeting with
Lennon and Ono at the Dorchester Hotel. Klein later met with Ringo
Starr and George Harrison,
then a meeting with all four Beatles was arranged. But Paul McCartney
refused to allow Klein to represent him and a major disagreement that
became a major cause of friction among the Beatles began.
Allan Kozinn, who covered the Beatles for many years for The New York Times and now writes for the Wall Street Journal and is also the author of The Beatles: From the Cavern to the Rooftop
(Phaidon), said Lennon's change of heart about Klein was quite an
about-face. “John Lennon's thinking about Allen Klein evolved fairly
quickly between 1969, when he was the strongest advocate for Klein to be
the Beatles manager, and 1973, when their business association was
dissolved by this contract. It can't have helped that George Harrison
had already experienced problems to do with Klein's handling of the
proceeds for the Concert for Bangladesh, and that both George and Ringo
wanted to extricate themselves from Klein's management. Eventually
Lennon said in a television interview that he had come to realize that
Paul "might have been right" in his objections to Klein.
“One of
his more pointedly angry songs, 'Steel and Glass,' has always been
interpreted as his comment on his relationship with Klein -- although
toward the end of his life, in a more self-analytical moment, he said
that the song was really about himself."
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