The Beatles' Break-up - Business Quagmire: Allen Klein, Lee Eastman and ATV-Northern Songs

Business Quagmire: Allen Klein, Lee Eastman and ATV-Northern Songs

Apple Corps during this period was plagued by business problems. Lennon and Ono met with Allen Klein regarding managerial advice. Subsequently, Lennon requested that Klein represent his business interests in the band. Harrison and Starr acquiesced, while McCartney had ambiguous feelings about Klein's managerial potential. McCartney's growing relationship with Linda Eastman opened the opportunity for Lee and John Eastman, Linda's father and brother, respectively, to become involved in advising the band's financial and legal decision-making. However, the band members' quarrels and disharmony over musical matters soon permeated their business discussions.

Dick James, who held substantial rights to Northern Songs (the Lennon–McCartney song catalogue), became increasingly concerned over the band's dissension and resentment towards him. Without informing the Beatles, he inconspicuously entertained offers to sell his substantial shares in Northern Songs. Klein and the Eastmans were caught off guard and their attempts to reclaim control of the Beatles (via Maclen Music) failed. It soon became evident that the Eastmans and Klein had developed an adversarial relationship given their disparate advice and counsel. This further aggravated the underlying mistrust and antipathy experienced within the band.

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