Brian Epstein

As he did not want his parents to find out, he worked as a department store clerk until he had earned enough money to buy a train ticket back to Liverpool. Back in Liverpool, he confessed his homosexuality to a psychiatrist—a friend of the Epstein family—who suggested to Harry Epstein that his son should leave Liverpool as soon as possible. During the sessions Epstein revealed his ambition of becoming an actor, so his parents allowed him go to London to study.

After saying the he "felt like an old man at the age of 21", Epstein attended the Royal Academy of Dramatic Art (RADA), in London. His RADA classmates included actors Susannah York, Albert Finney and Peter O'Toole, but Epstein dropped out after the third term, saying that he had become "too much of a businessman to enjoy being a student, and I didn't like being a student at all." In 1964, he revealed that he would have liked to produce a theatre play, or even act, "in something by Chekhov", or a "straight drama" by John Osborne. Read Less

The Beatles would then share any income after various expenses had been deducted. Epstein then formed a management company, NEMS Enterprises, telling his parents that managing the group was only a part-time occupation and would not interfere with the family business. Although The Beatles signed Epstein's first management contract, he did not sign it himself. He later told Taylor, "Well, if they ever want to tear it up, they can hold me but I can't hold them". (Note: English law would have enforced the contract through the doctrine of part performance). The contract stated that Epstein would receive a management commission of 25 per cent of the group's gross income after a certain financial threshold had been reached. The Beatles argued for a smaller percentage, but Epstein pointed out that he had been paying their expenses for months without receiving anything in return. Read Less

When he first visited Epstein's office, Isherwood was surprised to learn that Epstein took 25 per cent of the gross income, and not the 10 per cent that he believed most other managers received at that time. All of Epstein's expenses were deducted from his artists' gross income, including office rental, staff wages, travel, telephone costs, and entertaining expenses. Before his death, Epstein knew that the renegotiation of his management contract (up for renewal on 30 September 1967), would lower his management fee from 25 to 10 per cent, and that NEMS would no longer receive a share of The Beatles' performance fees, reducing its revenues still further.

The Beatles entered into a publishing agreement with Dick James Music (DJM), so James set up a company called Northern Songs. James and his financial partner and accountant, Charles Silver, would each receive 25 per cent of the shares. Lennon and McCartney received 20 per cent each, with Epstein receiving the remaining 10 per cent. The Beatles' PRS income increased rapidly, so Epstein asked Isherwood to devise a way of avoiding the tax that Lennon and McCartney would owe. Isherwood suggested a stock market flotation for Northern Songs. He also suggested to Epstein that during the flotation Lennon and McCartney should move to houses near Isherwood's own in Esher. Lennon, Harrison and Starr agreed, while Epstein and McCartney remained in London. Read Less