Paul McCartney Signs New Deal with EMI and Capitol Records – 15 May 1975
Thursday 15 May 1975 | Press Release
On 15 May 1975, a new four-year recording deal between Paul McCartney and EMI/Capitol Records was announced. Negotiated by McCartney’s father-in-law Lee Eastman, the deal secured a reported artist royalty rate of 24% — significantly higher than the 17.5% The Beatles had received since 1969 — along with a $3.3 million advance, ownership of his solo album masters, and, crucially, Capitol’s share in Morley Music, which included the publishing rights to ‘Love Me Do’ and ‘PS I Love You’. The first release under the new agreement was Venus and Mars, due at the end of the month.
The Context: After Band on the Run
McCartney was negotiating from a position of considerable strength. Band on the Run — recorded in Lagos, Nigeria, in 1973 and released in December of that year — had been a commercial and critical triumph, reaching number one in both the UK and the United States and re-establishing McCartney as one of the most significant solo artists of the decade. It had sold millions of copies worldwide and had demonstrated, definitively, that Wings were a serious commercial proposition rather than a vehicle for a former Beatle coasting on past glories.
The renegotiation of his deal with EMI and Capitol had been made possible by the settlement of The Beatles’ business issues — the long and painful process of unwinding the Apple Corps disputes, the Allen Klein litigation, and the various financial entanglements that had followed the group’s dissolution. With those matters resolved, McCartney was free to negotiate a new deal on his own terms, and Lee Eastman — one of the most experienced music industry lawyers in the United States — ensured that those terms were exceptional.
The Terms: A Landmark Deal
The headline figure was the royalty rate. Lee Eastman secured a reported artist royalty of 24% — equivalent to 54 pence for every album sold in the United Kingdom, and 7 pence per single. This compared favourably with the 17.5% rate that The Beatles had negotiated in 1969, itself considered generous at the time, and placed McCartney among the highest-earning recording artists in the world on a per-unit basis.
The advance was reported at approximately $3,300,000 — a substantial sum in 1975, reflecting both McCartney’s commercial track record and the competitive pressure on EMI and Capitol to retain one of their most valuable artists.
Ownership of his solo album masters was another significant element of the deal. The question of who owns the master recordings of an artist’s work — the original recorded tapes from which all copies are made — has been one of the defining issues in the music industry for decades. For McCartney to secure ownership of his masters in 1975 was an unusually forward-thinking arrangement, and one that would prove increasingly valuable as the music industry evolved.
Morley Music and the Beatles Publishing
Perhaps the most historically significant element of the deal was the transfer of Capitol’s share in Morley Music. Morley Music was a publishing company whose catalogue included the rights to a number of popular standards — but, more importantly for McCartney, it also held the publishing rights to two Beatles songs: ‘Love Me Do’ and ‘PS I Love You’, the A and B sides of The Beatles’ first single, released in October 1962.
The Lennon-McCartney catalogue had been a source of profound frustration for McCartney since 1969, when ATV — Sir Lew Grade’s company — had acquired Northern Songs, the publishing company that owned the vast majority of the Lennon-McCartney songs. McCartney had been unable to prevent that acquisition, and the songs he had written with John Lennon remained outside his control. The acquisition of the Morley Music rights to ‘Love Me Do’ and ‘PS I Love You’ was a small but symbolically significant step in the other direction: two Beatles songs, back in McCartney’s hands.
The Capitol Records Press Release
The announcement was made via a joint press release from Capitol Records and McCartney’s representatives:
“Capitol Records and Paul McCartney are delighted to announce that they have concluded an exclusive recording agreement for the USA, Canada and Japan. A separate agreement covering all other territories of the world has been concluded between Mr. McCartney and EMI Records. The first recording under the new agreement, the album Venus and Mars, will be released worldwide in May on the Capitol label.”
— Capitol Records press release, 15 May 1975
The geographical split — Capitol for the USA, Canada, and Japan; EMI for all other territories — reflected the standard structure of the major label system at the time, in which Capitol and EMI operated as sister companies with distinct territorial responsibilities.
Venus and Mars: The First Release
Venus and Mars — the Wings album that would be the first release under the new deal — was released on 30 May 1975. It reached number one in both the UK and the United States, confirming that the commercial momentum of Band on the Run had been sustained. The album was followed by the Wings Over the World Tour, which ran from September 1975 to October 1976 and became one of the highest-grossing tours of the decade.
Lee Eastman: The Architect of the Deal
Lee Eastman — born Leopold Vail Epstein in 1910, the father of Linda McCartney — was one of the most respected entertainment lawyers in the United States. His client list included Willem de Kooning, Robert Motherwell, and other major artists, and he had a reputation for securing exceptional terms for his clients through a combination of legal expertise and personal authority.
His involvement in McCartney’s business affairs had been a source of tension within The Beatles in 1969, when McCartney had proposed the Eastmans as managers of Apple Corps while the other three Beatles favoured Allen Klein. The dispute had been one of the factors that accelerated the group’s dissolution. By 1975, with Klein’s involvement in Beatles affairs terminated and the business disputes largely resolved, Eastman’s role as McCartney’s adviser was unchallenged — and the EMI/Capitol deal was the most visible demonstration of what he could achieve on his son-in-law’s behalf.
Key Facts: 15 May 1975
- Date announced: 15 May 1975
- Deal duration: Four years
- Labels: Capitol Records (USA, Canada, Japan); EMI Records (all other territories)
- Royalty rate: 24% (54p per UK album; 7p per UK single)
- Previous Beatles rate: 17.5% (since 1969)
- Advance: Approximately $3,300,000
- Masters ownership: McCartney to own all solo album masters
- Morley Music: Capitol’s share transferred to McCartney, including publishing rights to ‘Love Me Do’ and ‘PS I Love You’
- Negotiated by: Lee Eastman
- First release under new deal: Venus and Mars (released 30 May 1975)
Frequently Asked Questions
What were the terms of Paul McCartney’s 1975 EMI/Capitol deal?
The deal secured a reported 24% artist royalty rate (54p per UK album, 7p per single), a $3.3 million advance, ownership of his solo album masters, and Capitol’s share in Morley Music — which included the publishing rights to ‘Love Me Do’ and ‘PS I Love You’. It was negotiated by his father-in-law Lee Eastman.
Why was McCartney’s 1975 royalty rate significant?
The 24% rate was significantly higher than the 17.5% The Beatles had received since 1969, and placed McCartney among the highest-earning recording artists in the world on a per-unit basis. It reflected both his commercial strength following Band on the Run and Lee Eastman’s negotiating skill.
What is Morley Music and why did it matter?
Morley Music was a publishing company whose catalogue included the rights to a number of standards, as well as the publishing rights to ‘Love Me Do’ and ‘PS I Love You’ — the A and B sides of The Beatles’ first single. Capitol’s share in Morley Music was transferred to McCartney as part of the 1975 deal, returning two Beatles songs to his control.
Who was Lee Eastman?
Lee Eastman (born Leopold Vail Epstein, 1910) was Linda McCartney’s father and one of the most respected entertainment lawyers in the United States. He negotiated the 1975 EMI/Capitol deal on McCartney’s behalf, securing terms that were exceptional by the standards of the era.
What was the first release under McCartney’s new EMI/Capitol deal?
Venus and Mars, the Wings album released on 30 May 1975 — two weeks after the deal was announced. It reached number one in both the UK and the United States.
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