Seltaeb
Nicky Byrne arrived at David Jacobs's office on the 4th of December 1963 with a contract that had no numbers written in it. He told the lawyer to simply write down ten percent for himself and leave the rest blank. Epstein signed the document without realizing that a standard deal would have given NEMS Enterprises seventy-five or eighty percent of all profits. The first payment Byrne sent to Epstein was nine thousand seven hundred dollars, but he explained that this entire sum belonged to the band because they were only entitled to their ten percent share. Epstein later realized he had made an appalling error by accepting such a small percentage of what could have been millions.
Byrne rented expensive offices on Fifth Avenue and hired two limousines to transport clients from the airport. He insisted that only presidents of merchandising companies could speak directly to him or his partner Lord Eliot. The Wall Street Journal predicted American teenagers would spend fifty million dollars during 1964 on wigs, dolls, egg cups, T-shirts, sweatshirts, and narrow-legged pants. Reliance Manufacturing Company factories smoked night and day to meet demand after selling products valued at twenty-five million dollars retail value. Remco Toys produced one hundred thousand Beatles dolls and received orders for another five hundred thousand more.
Peregrine Eliot sued Byrne in The Times on the 9th of December 1964 for damages totaling one million dollars. Eliot accused Byrne of spending one hundred fifty thousand dollars on personal comfort while charging hotel bills as high as nineteen thousand dollars every week for girlfriends. The suit also alleged that Byrne opened charge accounts for these women in Fifth Avenue shops and hired a chauffeur for seven hundred dollars a week. Epstein cancelled Seltaeb's power to grant licences after accusing them of not accounting properly, which started a counter-lawsuit by Byrne against NEMS accountant Walter Hofer asking for over five million dollars in damages.
Woolworths and Penney refused to finalize any merchandising agreements due to the ongoing legal battle between Byrne and Epstein. These cancellations resulted in orders worth seventy-eight million dollars disappearing from the market overnight. The court case and its effect were estimated to have lost NEMS and the Beatles approximately one hundred million dollars in potential revenue. Epstein paid all court costs and legal bills himself even though the judgement was later vacated and rendered null and void. Thirty-nine individual claims against NEMS took three years to settle during this period.
Brian Epstein died on the 27th of August 1967 from what was ruled an accidental overdose of a prescribed drug. Days before his death Epstein feared the band would not renew their contracts with him if they discovered the truth about Seltaeb. David Jacobs was found hanged in his garage on the 15th of December 1968 after telling a private detective that he was in terrible trouble and listing six well-known showbusiness people who were after him. Byrne retired to the Bahamas on his yacht before eventually moving to the Trowbridge area of Wiltshire.
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Common questions
What percentage of profits did Nicky Byrne take from Seltaeb instead of the standard deal?
Nicky Byrne took ten percent of all profits from Seltaeb while leaving the rest blank on the contract. This amount was significantly lower than the seventy-five or eighty percent that NEMS Enterprises would have received under a standard agreement.
When did Peregrine Eliot sue Nicky Byrne for damages related to Seltaeb operations?
Peregrine Eliot sued Nicky Byrne in The Times on the 9th of December 1964 for damages totaling one million dollars. The lawsuit accused Byrne of spending money on personal comfort and charging high hotel bills for girlfriends.
How much potential revenue did the legal battle between Epstein and Byrne lose for the Beatles?
The court case and its effects were estimated to have lost NEMS and the Beatles approximately one hundred million dollars in potential revenue. Woolworths and Penney refused to finalize any merchandising agreements due to the ongoing legal battle, causing orders worth seventy-eight million dollars to disappear overnight.
On what date did Brian Epstein die and what was the cause of death?
Brian Epstein died on the 27th of August 1967 from what was ruled an accidental overdose of a prescribed drug. Days before his death he feared the band would not renew their contracts with him if they discovered the truth about Seltaeb.
What happened to David Jacobs after the Seltaeb controversy began?
David Jacobs was found hanged in his garage on the 15th of December 1968 after telling a private detective that he was in terrible trouble. He listed six well-known showbusiness people who were after him prior to his death.