How Entertainment Lawyer John Branca Negotiated for the Beatles Songs Catalog
![How Entertainment Lawyer John Branca Negotiated for the Beatles Songs Catalog How Entertainment Lawyer John Branca Negotiated for the Beatles Songs Catalog](http://i1.wp.com/hbr.org/resources/images/article_assets/2024/11/wide-cold-call-hbr-24.png?w=1200&resize=1200,675&ssl=1)
Hey there, welcome to the rich world of negotiation—a place where the stakes can skyrocket faster than a plane taking off from an airport! As Webster’s Dictionary puts it, negotiation is a dialogue between two or more parties striving to hammer out an agreement or resolve a quarrel. Originating from the Latin terms “neg” (meaning “without”) and “otium” (meaning “ease”), this definition might strike a chord with anyone who’s ever been caught in the whirlwind of high-pressure negotiations—be it in the boardroom or when trying to reason with a teenager! As Henry Kissinger once quipped, “It’s frankly a mistake of amateurs to believe that you can gain the upper hand in a negotiation.” Today on Cold Call, we’re diving into the intriguing case of “John Branca Negotiating the Beatles Northern Songs Catalog” with none other than Professor James Sebenius. I’m your host, Brian Kenny, and this is your backstage pass to the arts of negotiation, right here on the HBR Podcast Network.
For our loyal listeners, we have something special brewing today! We’re broadcasting live from the heart of Harvard Business School during the Alumni Reunion weekend! Let’s hear some cheers from the audience!
Let’s dive into the details with our guest, Jim. Jim Sebenius isn’t your average professor; he’s the mastermind who founded the very negotiations unit at Harvard Business School and also heads the Harvard Negotiation Project at the Law School. With extensive experience in navigating complex negotiations, Jim also shares his insights through his new podcast, Dealcraft. Fresh off a trip to the Middle East talking to Israeli and Palestinian diplomats and business moguls, Jim, you must be running on fumes!
JIM SEBENIUS: A tad tired, but hey, that’s not a measure of triumph, is it?
BRIAN KENNY: Maybe not! Your work is so crucial in a region that really needs some expert diplomacy. I’m excited to have you with us to discuss the fascinating John Branca case. It’s a blast from the past—many of us remember when Michael Jackson made headlines by acquiring the Beatles’ catalog. What’s often overlooked, though, is the intricate web of negotiations that spun behind the scenes. I found your case riveting, and I’m eager for you to share the central theme and your cold call kickoff for our discussion!
JIM SEBENIUS: Thanks, Brian! I appreciate your enthusiasm! This case really zooms in on a conundrum that boggles both students and seasoned executives: how do you deal with tough negotiators effectively and ethically? While I’m an advocate for finding cooperative solutions, the challenge arises when you’re up against hard-bargainers who might play dirty. The specific cold call question I use with this case is quite interesting. For context, Michael Jackson was riding high on the success of Thriller and looking to explore investments. His friend, the legendary Paul McCartney, suggested delving into music publication rights. So, Jackson turned to his lawyer, John Branca, to scout different catalogs. Then, out of nowhere, the Beatles’ catalog—Northern Songs—became available.
Now, here’s where it gets juicy: John Branca, working for Michael, has one directive—‘Don’t let this catalog slip away, but don’t get roped into paying an arm and a leg.’ He’s already locked in some preliminary handshake agreements with its owner, Robert Holmes à Court, who later reneged on those deals. Now multiple bidders are stepping into the fray, and Branca is left asking, ‘What’s my game plan?’ How do you maneuver through this minefield?
BRIAN KENNY: Intriguing! As a case writer, I’m always curious about what makes a story compelling. What elements make this case a standout?
JIM SEBENIUS: Well, it grabs attention when it’s tied to a high-profile industry and iconic figures. It’s also a challenge to negotiate with those who are exceptionally skilled at the game. The insights drawn from real conversations and interviews add layers of authenticity to the lesson. Further, it amplifies the intrigue when you think about negotiating with individuals employing questionable tactics but still wanting the deal. It’s a scenario many can relate to, and the evolving negotiations show that it’s not just a single deal, but a saga with multiple players and repercussions over time.
BRIAN KENNY: You’ve got a diverse cast in this negotiation; how did John Branca meet Michael Jackson, given the enigmatic persona surrounding him?
JIM SEBENIUS: Branca’s journey is captivating! He serendipitously became a co-executor of Jackson’s estate posthumously in 2009. Interestingly, he was a lawyer who had navigated some wild waters, having dropped out of high school and even played in a band that opened for The Doors. When they first met, Jackson was seeking someone to elevate his legal standing. Branca, exuding youthful confidence, asserted he could do better than Frank Sinatra’s lawyer, Mickey Rudin. And he did—he negotiated hefty contracts and was instrumental in launching the Thriller film project—all of which fostered a complex, sometimes tumultuous professional bond.
BRIAN KENNY: Jackson had passion driving him—how did that impact his judgment during negotiations?
JIM SEBENIUS: Passion was palpable! Michael, at one point, handed Branca a note declaring, “Don’t let this deal go; I’ve lost too many like this.” He surrounded himself with trusted advisors but also insisted Branca secure the catalog without overpaying. That’s no small feat, given how emotionally tied Jackson was to the outcome.
BRIAN KENNY: Let’s shift gears to another player in this equation—Robert Holmes à Court. What was he like to negotiate with?
JIM SEBENIUS: Holmes à Court was a real character. John had already struck a couple of handshake deals with him, only for Holmes à Court to play fast and loose with them. He was intense and clever, relying heavily on analysis, often leaving Branca in a precarious situation. Due diligence, in this case, was not just an option but a necessity, considering the unpredictable nature of Holmes à Court’s bargaining tactics.
BRIAN KENNY: Tell us about Branca’s bold strategy of conducting due diligence before the deal was fully secured.
JIM SEBENIUS: Absolutely! John decided to spend lavishly—he invested over a million of Jackson’s funds, pulling in a small army of specialists to explore the intricacies of Northern Songs. However, this backfired slightly as it put him in a vulnerable position if the deal fell through. In hindsight, John admits he might have opted for precise due diligence clauses instead to avoid undue risk.
BRIAN KENNY: With this kind of high-stakes negotiation, how did Branca maintain his competitiveness when Holmes à Court kept reshuffling the deck?
JIM SEBENIUS: The trick was in Branca’s charm and street smarts. He decided to play the psychological game; showing up in a leather jacket, channeling his inner rock star to signify that he was no push-over. When Holmes à Court signed a deal with a competitor, Branca knew he needed to operate swiftly. Upon discovering that the basis of their funding was shaky, he leveraged his connections to pull the financing, effectively giving him the upper hand.
BRIAN KENNY: It sounds like a strategic dance fraught with potential missteps! Beyond the immediate financial implications, were there long-lasting effects of this deal on the music industry?
JIM SEBENIUS: Definitely! When Branca finally inked the deal in London, the competitors admitted they’d been outmaneuvered and sought to collaborate with him in the future! Branca also ensured that after this ordeal, Michael Jackson’s legacy would be a number-one asset—state-of-the-art music rights would usher in monumental changes in the industry. However, one casualty was Michael’s relationship with Paul McCartney; despite his good intentions, that bridge would remain burnt.
BRIAN KENNY: With all this knowledge, do you think negotiations in today’s realm would still yield similar kinds of high-stakes, secretive strategies? Is transparency more emphasized now?
JIM SEBENIUS: It’s a mixed bag, but I’d argue that while some contenders might still engage in strategic plays along this vein, the legal landscape demands a heightened awareness of the implications of one’s tactics. Ultimately, knowing your negotiating counterpart and the context of the deal is crucial.
BRIAN KENNY: As we wrap up, if there’s one takeaway for our listeners, what would it be?
JIM SEBENIUS: Know your counterpart like the back of your hand! Conduct thorough research to avoid falling into their traps and mold your approach based on what you uncover. This case has left ripples—over time, it highlighted how strategic assets can yield unprecedented returns. Jackson’s acquisition of the catalog became a cornerstone for his wealth and provided incredible returns for decades.
BRIAN KENNY: You’ve got to check out Jim’s podcast for more insights! Take us behind the scenes of Dealcraft.
JIM SEBENIUS: Thanks, Brian! Over the years, I’ve worked with an amazing consortium of universities and negotiation experts. Together, we’ve been capturing the stories of great negotiators. In each episode, we drill down into their strategies, obstacles, and the urgent lessons learned—unexpected gems that can apply to any aspect of life! So tune in and glean from these negotiations that changed the landscape!
BRIAN KENNY: If you enjoyed our chat today, you’ll want to check out our other offerings, such as After Hours, Climate Rising, Deep Purpose, IdeaCast, Managing the Future of Work, Skydeck, Think Big, Buy Small, and Women at Work. These are all available on platforms like Apple and Spotify. A quick rating or review would be appreciated! If you have comments, suggestions, or just want to say hi, drop us a line at [email protected]. Thanks for tuning in! Until next time, I’m Brian Kenny, signing off from Cold Call—where negotiation stories come alive!