"b.u.t.t out!" was Joseph"s response. "These are my my G.o.dd.a.m.n kids. Las Vegas has a good tradition, and I want them to know about it. It"s time for them to grow." G.o.dd.a.m.n kids. Las Vegas has a good tradition, and I want them to know about it. It"s time for them to grow."
"Hey, man, that"s my son-in-law"s career, too. I"m worried about him, about all of them."
Joseph hung up on him.
Certainly, Berry understood the value and prestige of a successful engagement in Las Vegas for any performer. After all, he was the one who had championed the Las Vegas breakthrough of The Supremes in 1966. However, that engagement occurred only after years of carefully honing the trio"s act to sophistication. Berry wanted his Motown performers to appeal to adults, especially to white adults, but he was certain that the Jacksons would fail miserably because of their lack of experience with the kind of material necessary to please a middle-of-the-road, predominantly white audience.
"Fine, then, let "em go into Las Vegas if they want," Berry reasoned to one of his aides. He was still stung by Joseph"s reaction to him; few people ever hung up on him. "I"m afraid that they"ll fail there," he added, "but maybe it"ll teach Joseph a lesson. Too bad the boys have to suffer on his account, especially Jermaine."
Joseph was anxious to teach Berry a lesson of his own. At his urging, the entire family rallied together to prove Berry mistaken. "We knew that Motown didn"t believe in what we were doing," Jermaine recalled. "My father was out to prove them wrong, and the brothers were behind him one hundred per cent. I was torn. I had a suspicion that Berry was right."
To make his family"s show unique for Las Vegas, Joseph followed an example set by The Osmonds. That group had brought in younger brother, Jimmy, and sister, Marie, for their Caesars" engagement, and to great acclaim. Not to be outdone, Joseph recruited LaToya, seventeen, as well as Randy, twelve, and Janet, seven. (Rebbie was also expected to perform. However, when she sprained her ankle, her debut with the act was postponed a few months, until June.) None of the new additions to The Jackson 5 show was overwhelmingly talented, but their marginal ability did help gloss up the overall show. It was Katherine"s idea to have Randy and Janet do impressions of Sonny and Cher, rhythm-and-blues stars Mickey and Sylvia, and even Jeanette MacDonald and Nelson Eddy. Janet also did a cute Mae West in a backless, pink satin gown and feather boa, which Variety Variety would call "hilarious". would call "hilarious".
LaToya joined the tap dancing routine to "Forty-second Street". There was a bit of a problem with LaToya, though. She wanted to sing a solo in the act, but had limited vocal talent. "She wanted the spotlight" remembered a friend of hers. "She would rant and rave, cry and throw fits. Joseph told her that all she would be allowed to do was mouth the words of songs on stage in group numbers, acting as if she were singing but not really singing at all. She didn"t like that, but she had no choice."
On stage, the MGM Grand orchestra loomed large behind the Jackson family on opening night, 7 April 1974. It was the kind of oversized orchestra that could never fit on most stages. A small group of musicians Motown"s rhythm section was added to the mix to help re-create the sound of the familiar Jackson 5 hit records. Bright and colourful firework patterns burst across a pale blue backdrop as the Jacksons appeared on stage, much to the excitement of their audience.
Although The Jackson 5 had, for the most part, built their reputation on rhythmic music, for their Las Vegas show they showcased a variety of song styles, as typified by a centre-piece medley which they introduced on opening night. The presentation was different, for them. Instead of dancing, the brothers sat on tall stools side by side, with mikes in front of them. Their outfits could best be described as "mariachi-band mod". The waist-length jackets worn over ruffled, white, open-neck shirts were reminiscent of those that draped strolling Mexican musicians, but the resemblance ended there. These costumes had sequin-scrolled lapels and were in untraditional colours: olive, green, pumpkin, pink, purple and gold. The bell-bottom trousers were light olive green, pale orange, maroon, lavender and brown. White patent shoes had clunky two-inch heels.
The medley began with t.i.to strumming on guitar, he played his solo instead of singing it, followed by Michael with a fluid rendition of Roberta Flack"s "Killing Me Softly". On the last line, Michael turned to Jermaine, who sang a gentle version of Glen Campbell"s "By the Time I Get to Phoenix". Midway through that number, Michael and Jermaine harmonized the chorus. It seemed so effortless, their voices blending together to create a sound so natural, so right. They turned to Jackie. The music then segued into the cla.s.sic, "Danny Boy", an excellent choice for Jackie"s falsetto voice. As Marlon joined in, the two sang as one. Though there was none of the vocal interplay shared by Michael and Jermaine a moment earlier; still, the two voices sounding like one created a full-bodied, clear-as-a-bell tone. The set ended with the three-song selections being interwoven a line here, a line there, each one joining the other. It was obvious the brothers had devoted themselves to perfecting such an intricate, beautiful arrangement, one that did not just feature Michael. The audience could feel the closeness between them as brothers, much more than just fellow performers. The standing ovation was loud and long.
When Michael had his turn in the spotlight, though, it was clear that he was the star. Spinning like a human top in his sparkling suit and flanked by his siblings, Michael churned effortlessly through each number "I Want You Back", "ABC," "The Love you Save" and all the rest changing pace again and again but always maintaining the mesmerizing grip on his audience so essential for a performer. "When we started out, I used to be little, cute, and charming," Michael said in the act. "Now I"m big, big, cute and charming." After each song, he would walk to the footlights and accept the plaudits of his fans. cute and charming." After each song, he would walk to the footlights and accept the plaudits of his fans.
For their Las Vegas debut, the Jackson family had pulled out all the stops, coming together as a family for a stellar performance. As all of them joined hands and raised their arms triumphantly, the audience erupted into a standing ovation. Katherine was front and centre, leading the applause.
In the wings, stage right, Joseph rocked back and forth on his heels, hands jammed in his tux pockets, a grin spread across his face. With the exception of the absent Rebbie, this night was the realization of his greatest dream: all of his children on stage, performing together. "They did it," he said to no one in particular. "They did it."
When Berry learned that The Jacksons had enjoyed a successful opening night in Las Vegas, he sent a contingent of Motown executives to the city in order to present an image of corporate solidarity behind the family. "We were always certain that the boys had what it took," he then noted in a prepared statement sent to the press. "This is just the tip of the iceberg where The Jacksons" talent is concerned..."
Backstage, after the fourth night"s performance, Joseph read the press release article to his family. The family felt betrayed, except for Jermaine who had no comment to make about it. The triumph in Las Vegas was Joseph"s to claim, not Berry"s. After he finished reading the article, Joseph crumpled the newspaper in his hands and flung it into a trash can.
In August 1974, the Jackson family was again booked into the MGM Grand in Las Vegas, but behind the scenes things were no less tense. Alb.u.m releases were becoming less frequent. Whereas they used to have at least three a year, in 1974 there was only one, the Dancing Machine Dancing Machine alb.u.m. Two singles that were released at the end of the year, "Whatever You Got I Want" and "I Am Love", were not successful. Motown then cancelled the release of a Michael Jackson single called "d.o.g.g.i.n" Around". A string of unsuccessful records usually put a disgruntled artist in his place when he was going up against a major label like Motown, and the Jackson family was having quite a losing streak on the charts. alb.u.m. Two singles that were released at the end of the year, "Whatever You Got I Want" and "I Am Love", were not successful. Motown then cancelled the release of a Michael Jackson single called "d.o.g.g.i.n" Around". A string of unsuccessful records usually put a disgruntled artist in his place when he was going up against a major label like Motown, and the Jackson family was having quite a losing streak on the charts.
As if all of the business problems were not enough of a distraction for the young performers, their mother discovered that Joseph had been having an affair with a Jackson 5 fan from Kansas. She was a twenty-six-year-old black woman who had, at first, been attracted to Jackie. When he expressed no interest, she turned to his father.
It was rumoured that the woman was pregnant. The issue was not discussed openly; the boys whispered about it among themselves. The question was obvious: was Joseph the father of her child? The thought that Joseph was having a child with another woman was so upsetting to Michael, he could barely perform. It was, as far as he was concerned, the ultimate betrayal of his mother.
After one of the shows in Las Vegas, Joseph called a group meeting to discuss glitches he saw in the boys" performances. As far as he was concerned, the show had to go on, despite any personal problems the family might be experiencing. However, Michael decided to boycott the meeting.
Later, Joseph caught up with Michael as he was wandering through the casino of the MGM Grand. He tapped Michael on the shoulder. Michael glanced back, saw who it was, and continued walking. Joseph roared, "What the h.e.l.l?" He shouldered aside patrons in an effort to reach his son.
"I remember it like it was yesterday," recalled Steven Huck, a Jackson 5 fan who had gone to Las Vegas to see the show. "Michael was dodging his father all over the casino, hopping around like a jackrabbit, trying to outrun Joseph. "You listen to me," Joseph demanded. Then he grabbed Michael by the arm. I had no idea what was happening, what the problem was, but I couldn"t help but watch."
Huck recalled that Joseph spoke softly, rapidly into Michael"s ear. Michael listened, his face a blank. Then, in mid-sentence, it seemed, he shook himself free of Joseph and pushed him away. "Don"t you ever touch me again. Do you hear me?" Michael"s voice could be heard above the din of the slot machines. People in the vicinity turned to stare and, upon recognizing him, began to whisper among themselves. No one came forward.
"I never dreamed that Michael Jackson could raise his voice to his father, or to anyone else," Huck said. "I was shocked. He sounded hurt. When he shouted, it was an odd sound, like a wounded animal."
Joseph seemed shaken. Father and son glared at each other for a moment before Joseph raised his right hand as if he were about to strike. It wouldn"t have been the first time, but the expression on Michael"s face indicated that it would have been the last. Joseph"s jaw sagged; he backed up two steps. Michael then ran off into the bustling casino.
It would be years before he would learn the truth about his father"s affair and about his half-sister, Joseph"s secret daughter.
Jackie Marries.
In the winter of 1974, Michael Jackson"s twenty-three-year-old brother, Jackie, made newspaper headlines when he suddenly married Enid Spann. Jackie had met her at a birthday party for Hazel Gordy five years earlier. Enid attended Beverly Hills High (as did Hazel) and was just fifteen when she and Jackie, three years her senior, became attracted to each other.
She got the news about a pre-nuptial agreement early on. She and Jackie had barely started dating, but the Jackson attorney, Richard Arons, heard through the family grapevine that she was interested. He decided to take preventive measures and meet with her, telling her that if she married Jackie, she would have to sign a pre-nuptial agreement.
"Let me tell you something," the teenager said to the lawyer. "When I marry Jackie Jackson which I now think will never happen if signing that marriage licence isn"t good enough for him, then I don"t need him and I don"t want him."
Arons was surprised by her audacity.
"And another thing," she added, "I wouldn"t talk, if I were you, because you"re you"re the one who"s living off of their gravy." the one who"s living off of their gravy."
Enid recalled that she was then "totally turned off" the Jackson family. "And when I told my mother what had happened, she was upset. It was a mean thing to do to a fifteen-year-old. After that, me and Jackie didn"t hit it off. I thought he had something to do with my conversation with Richard. However, when I finally told him what Richard and I discussed, he got angry and told him, "How dare you say that to her!""
Jackie and twenty-year-old Enid were married in a small private ceremony in Jackie"s room at the MGM Grand in Las Vegas during another of the family"s engagements there. Joseph suspected that Enid had ulterior motives for marrying his son, especially since, unlike t.i.to"s wife Dee Dee, she would not sign a pre-nuptial agreement. He also felt that Enid was too outspoken and independent, and would be a problem. That Joseph forbade Jackie to marry Enid Spann only served to motivate his eldest son towards the altar. For Jackie, the fact that he was uniting himself with a woman with whom he presumably would spend the rest of his life seemed less important than the fact that he was defying his father.
As a manager, Joseph did his best. As a parent he was making a mistake with his children by holding on so tightly, and it was one he would pay dearly for in the future. In a way, it"s the same mistake Berry Gordy had made with many of his Motown performers, but Joseph was a parent as well as a manager, and he was unable to distinguish between where one role began and the other ended. He treated his children the same way he did his business a.s.sociates: he negotiated by pounding his fist on the table and yelling louder than anyone else in the room. His behaviour was frightening to his wife and daughters, and emasculating to his sons. "Michael said that they used to run down the hall and slam their bedroom doors closed when they heard that Joseph was coming home," Jane Fonda recalls.
Michael"s Private Meeting with Berry.
In January 1975, Motown released Michael Jackson"s fourth solo alb.u.m, Forever Michael. Forever Michael. It was not a success, peaking at only 101 on the charts, eight notches lower than Michael"s poorly selling It was not a success, peaking at only 101 on the charts, eight notches lower than Michael"s poorly selling Music and Me Music and Me alb.u.m. Neither alb.u.m would even make the Top 50 in the UK, and the rest of Europe also showed dismal sales. "That"s it!" Joseph decided. "He"s not recording any more solo alb.u.ms for Gordy. That man"s gonna ruin Michael!" alb.u.m. Neither alb.u.m would even make the Top 50 in the UK, and the rest of Europe also showed dismal sales. "That"s it!" Joseph decided. "He"s not recording any more solo alb.u.ms for Gordy. That man"s gonna ruin Michael!"
Joseph had become increasingly agitated by Motown"s lack of promotion and Berry"s contention that the group had no potential to write or produce their own music. Joseph realized that his sons would never make big money unless they owned the publishing rights to their own songs. If an artist writes his own material, he makes not only an artist"s royalty, but an additional royalty, since songwriters are paid a royalty on every record that is sold. At this time, the rate was an additional two cents per copy sold, split fifty-fifty with the song"s publisher. Therefore, the B-side of a million-selling song, the side that rarely if ever gets radio airplay, could be worth up to twenty thousand dollars. At least, Joseph reasoned, the boys should be able to write their own B-sides. Was that too much to ask?
Most of Berry"s songwriters were signed to Jobete, his publishing company. Therefore, they had to split their two cents with Berry. Joseph wanted his boys to establish their own own publishing company so that they could keep the money in the family. The more he pressed the idea forward, the more Berry resisted it. publishing company so that they could keep the money in the family. The more he pressed the idea forward, the more Berry resisted it.
In the past, Berry had always been reluctant to share the money generated from publishing rights to Motown songs. At this same time, Smokey Robinson, Berry"s closest friend, was negotiating with Berry to allow him to publish his own songs, as well. Jobete owned all of Smokey"s songs, too, and Smokey, like Joseph Jackson, wanted a bigger piece of the pie. Eventually, Berry did allow Smokey to share that money, so he could be swayed. However, persistence was always the key when it came to getting Berry Gordy to do something about which he was reluctant. Smokey and Berry were friends, yet Smokey had to endure a fair amount of tough negotiation. What could Joseph certainly no friend expect from Berry? It seemed that he and his sons would have little chance of controlling publishing rights to their material as long he and Berry had such a contentious relationship. Ewart Abner was now practically running the record division of Motown, anyway... someone else Joseph disliked.
Joseph"s mind was made up: The Jackson 5 would have to leave Motown.
Was it even possible? If not for Berry and Motown, where would The Jackson 5 be? Perhaps, still in Gary, Indiana, was the answer. Still, if the circ.u.mstances didn"t soon change at Motown, it was clear that the group"s commercial future would be in jeopardy.
Though the group hadn"t yet voted on the decision and it"s likely that Joseph"s vote would sway his sons Michael said later that he knew the brothers would agree with his father. Michael was as unhappy as the rest of the family about what was going on at Motown, yet he still felt a loyalty to Berry. After all, it was largely due to Berry"s confidence in The Jackson 5 that the family now found itself in a position to be able to pick and choose among other record companies. This was a major decision for young Michael, and he didn"t want his father, a man he didn"t trust, or even like, making it for him.
The other Jacksons thought of Michael as being bashful and reserved, which was certainly true in most cases. However, there was another dimension to Michael, a side he did not often show but which was there just the same: his resolve. Where his future at Motown was concerned, sixteen-year-old Michael Jackson was prepared to take matters into his own hands. He picked up the phone in his bedroom and dialled. "Mr Gordy," he said, "you and I need to talk."
None of the Jackson brothers had ever had a private meeting with Berry Gordy. Until now, there had never been a reason for one. It"s unlikely that Berry would have consented to meet with Jackie, Marlon, Randy or t.i.to. None of them possessed Michael"s commercial voice or magical showmanship. And Berry felt he owed it to the teenager to hear him out. Though he liked Michael, he considered him shy and meek, hardly the person to be blunt and forthright. Therefore, he was probably intrigued by the notion of a private conference with him.
Michael didn"t care how his father felt about his decision to meet with Berry. In fact, he didn"t discuss it with him. Still angry at Joseph for all he had done to Katherine, not to mention the abuse he had heaped upon his sons, Michael made up his own mind. Also, Michael would say later that his intuition told him the difficult situation with Motown could have been resolved sooner if only Joseph hadn"t been so ill-tempered and possessive.
Others at the label agreed. Smokey Robinson said, in retrospect, "Joe never got used to Berry being the one to tell his kids what to do. He believed that since he was their father, he was their boss, and that was the end of that. But Joe wasn"t a businessman. He kept s.c.r.e.w.i.n.g things up and p.i.s.sing people off. No one wanted to do business with him, and that was a poor reflection not only on the Jacksons but also on Berry and Motown. Without Joe"s involvement, Berry would have worked things out with the Jacksons the way he did with me, Stevie Wonder, and anyone else who was unhappy at Motown, but ultimately stayed on."
Nor did Michael tell his brothers of his plan to meet with Berry, since he felt certain that they would try to talk him out of it. The Jacksons prided themselves on one vote each, even though Joseph"s vote usually trumped everyone else"s. Most certainly, Michael"s siblings would have felt that by meeting with Berry he was seizing more power than he was ent.i.tled to have as part of the group.
Michael and Berry arranged to meet at the Gordy estate in Bel Air on 14 May 1975. "It was one of the most difficult things I"ve ever done," Michael would recall. Mustering up his courage, he laid his cards on the table.
"We"re all unhappy, Mr Gordy," he said, according to his memory. "Do you really want us to leave Motown?"
"Well, Michael, someone as smart as you," Berry began, "should know that without Motown, The Jackson 5 would still be in Gary, Indiana, today."
Michael wasn"t cowed by the fact that Berry had apparently decided to play the guilt card. "That doesn"t answer my question," he told him.
Michael would later recall that he complained to Berry about the fact that Motown would not allow the brothers to write or produce their own music or control publishing rights. He was unhappy because he hadn"t been allowed to contribute to The Jackson 5"s most recent alb.u.m, Dancing Machine, Dancing Machine, despite the fact that he thought he had some strong songs he could have added to the package. If he could have had just one song on the alb.u.m, Michael said, it would have shown that Gordy had confidence in him as a songwriter. despite the fact that he thought he had some strong songs he could have added to the package. If he could have had just one song on the alb.u.m, Michael said, it would have shown that Gordy had confidence in him as a songwriter.
Berry remained calm. "I"ve been hearing this from my artists for years," he said. "However, we can work it out, Michael. Look, I worked it out with Stevie [Wonder], and Marvin [Gaye], didn"t I?" He was clear. He said he did not want the group to leave Motown. However, he added, "If you think you can get a better deal somewhere else, then you have to go somewhere else, I guess. But it just won"t be right... or fair."
In Michael"s eyes, Berry Gordy was a hero. He respected him and admired the tenacity with which he had transformed The Jackson 5 of Gary, Indiana, from local homeboys to international superstars. He thought of Berry as one of the smartest men he had ever known, and was amazed by the way he had made Motown such an international success story. Berry was an inspiration to Michael. To hear him now say that the Jackson family was being unfair to him after he had brought the group to Los Angeles, made arrangements for their living conditions, paid for their educations, and made them stars was difficult for Michael.
"What makes you think you can write or produce your own hit?" Berry asked Michael.
"I just know it," was Michael"s quick answer.
Berry looked at him sceptically. "I don"t know that that"s good enough."
"Well, what made you you think you could build Motown into what it is today?" think you could build Motown into what it is today?"
Berry didn"t answer.
"You just knew knew it, right?" Michael challenged. it, right?" Michael challenged.
Berry flashed a tolerant grin. "He nodded at me as if to say, "You"re going places, kid,"" Michael recalled. It ended with Berry emphasizing that he thought of himself as a father-figure to Michael, yet also stressing that it was important for the teenager to honour his natural father. "He said he believed I would do what was best," Michael told me later, when remembering the meeting. Michael added that he "felt a little sick about the whole thing", especially when Berry hugged him as he was leaving because, in his gut, he knew that no matter what he expressed to Joseph and the brothers about it, the cards were stacked against the Jacksons staying with Motown.
"I can promise you this," Berry concluded, "I won"t do anything to hurt you or your family."
Michael"s meeting with Berry Gordy showed surprising initiative, as well as no small measure of courage for a teenager. It was the first hint to many at the time that he was more than just a child prodigy. He had moxie. He seemed to understand what his father didn"t: that there are times when it makes sense to sit down with your opponent and try to reason with him. In his own uncomplicated way, Michael was able to cut through some of the rhetoric that had lately been so prevalent in the communication between Berry and the Jackson family. He was able to extract from Berry a promise that he would not do anything to hurt the family, which was quite a statement for him to make, and seemed genuine.
Joseph had heard from an a.s.sociate at Motown that Michael had seen Berry in private. Imagine his fury. When Michael got back to Encino, he was pacing in the living room like a caged animal waiting for dinner. Michael would not discuss with me the details of the argument that ensued between him and his father, but it isn"t difficult to imagine that Joseph made it clear that, in his view, Michael was out of his league in trying to negotiate with someone like Berry Gordy. Once he calmed down, he had to admire his son"s nerve, though. At least, one would hope so. The brothers, however, were annoyed.
"Michael had no right to meet with Berry Gordy," Jackie said, years later. "It was unfair of him to go behind our backs. We were all mad at him. And really, what did he accomplish?"
Perhaps Michael didn"t accomplish much in terms of The Jackson 5"s future at Motown, but his meeting with Berry was an important personal milestone. He had obtained Berry"s attention, which was something even his father, as well as his brothers (with the exception of Jermaine), had not been able to do. However, it did set him apart from the brothers and, from this time onward, none of the brothers would be warm to any suggestion that Michael be further individualized from the group. "Michael always had his own idea of how things should be done," Marlon Jackson once said. "But The Jackson 5 was a group, not his special project, and his was just one vote." In other words, Marlon saw the writing on the wall.
The night after Michael"s meeting with Berry, Joseph called a group meeting in the living room of their Encino home. All of the brothers were expected to appear, except for Randy and Jermaine. Young Randy had no say in any group matters, at this time. Jermaine was on holiday with Hazel, but he probably would have been excluded, anyway, since the family felt he had lost his objectivity about Motown. Jermaine later said, "Because of me being married to Hazel, they thought they couldn"t trust me so they kept me in the dark."
Jackie, t.i.to, Marlon, Michael and Joseph voted unanimously to leave Motown. Michael was ambivalent, but he knew it wasn"t smart to be the one dissenting vote. What good would it do him, anyway?
"I just want it to be done fairly, and something about this doesn"t seem fair to me," Michael said. "Berry made us stars. Don"t forget that."
"Look, Berry"s fine, but it"s over," one of the brothers said. "It"s time for us to be making the big bucks."
"I agree," said another one. "It"s time to go. We"re dying at Motown."
"He said he wouldn"t hurt us," Michael said, trying to stick up for Berry.
"Yeah, right," Joseph said, sarcastically. "Look, it"s settled," he concluded.
"But what about Jermaine?" Michael wanted to know.
"I"ll take care of Jermaine," Joseph said. "What do I always tell you kids?"
"There are winners in this life, and losers," Michael said, parroting his father"s credo. "And none of my kids are ever gonna be losers."
Joseph smiled. "If we stay at Motown," he concluded, "we lose. And we"re not losing."
CBS Offers the Jacksons a "Sweet Deal"
After the die was cast, Joseph Jackson and his attorney, Richard Arons, quietly began scouting for a new record deal, meeting first with Atlantic Records, which had a long experience with rhythm-and-blues music. Surprisingly, Atlantic"s chairman, Ahmet Ertegun, was unenthusiastic about The Jackson 5, he said, because of their inconsistent record sales at Motown in recent years. Joseph was not interested in trying to convince anyone of his sons" popularity. He"d had enough of that at Motown. If anything Ahmet"s view helped to underscore Joseph"s opinion that Motown truly had damaged his sons" reputation in the music industry.
Joseph was more interested in the CBS Records Group anyway, at which most of the black acts were contracted to the Epic subsidiary. CBS was renowned for its excellent record distribution and promotion network. "They make Motown look sick," is how Joseph put it.
Ron Alexenberg, president of Epic, and, ironically enough, a former protege of Motown"s Ewart Abner, was interested in signing The Jackson 5. Joseph respected Alexenberg under his guidance, Epic had increased its annual billing from less than $10 million to over $100 million. A compet.i.tive leader with his finger on the pulse of the record industry, he suspected that Berry Gordy had tapped only a small percentage of the Jacksons" fullest potential. He wanted to find out what else was there.
Joseph was also attracted by the company"s profitable relationship with Kenny Gamble and Leon Huff, producers of the so-called Philly Sound that had generated millions with hit records by black groups like The O"Jays and Three Degrees. Gamble and Huff had their own label at CBS, which they called Philadelphia International. Though Joseph felt that Philadelphia International was too small a subsidiary for The Jackson 5, he admired CBS"s commitment to black music. Perhaps the company would one day award him his own label, as well, he thought. He saw a future at CBS, not just for his sons but for himself.
Ron Alexenburg told Walter Yetnikoff, president of CBS Records, that he wanted to sign The Jackson 5 immediately. Walter was sceptical. "They haven"t been hot in a long time," he said. "And now look at them. They"re into this kitschy, Vegas thing."
"Trust me," Ron told him, according to his memory. "This group isn"t finished. It hasn"t even begun yet."
After quick and easy negotiations, an agreement was struck, one that Joseph called "a sweet deal". The Jackson 5 would receive an advance known in the record industry as a "signing bonus" of $750,000. They would also receive an additional $500,000 from a "recording fund" money meant specifically to produce the group"s alb.u.ms. They were guaranteed to be paid $350,000 per alb.u.m, far more than they had ever received at Motown (but many millions less than Michael Jackson would be paid for his services a scant five years down the road).
All of the advance money from CBS was to be recouped from royalties, but the royalty rate the new label offered was 27 per cent of the wholesale price for records released in the United States. At Motown The Jackson 5 had been paid 2.7 per cent, and before they saw that they knew they would have to pay back the costs of expenses including studio time, over which they had little to no control from royalties.
At this time, 1975, an alb.u.m retailed for approximately $6.98, $3.50 wholesale. So at Epic the Jacksons would make approximately 94.5 cents per alb.u.m sold in the United States, and 84 cents abroad. At Motown, they made roughly 11 cents per alb.u.m sold in the United States, with no difference in the European rate.
As outlined in the Epic deal, after each Jackson 5 alb.u.m topped $500,000 in sales, the group"s royalty rate would jump to 30 per cent, about $1.05 a disc. In terms of income, this new deal was worth about five hundred times five hundred times more than the one the group had at Motown. more than the one the group had at Motown.
A snag in negotiations occurred when Walter Yetnikoff refused to allow the Jacksons to write and produce, or even choose, all of their own material. He simply did not have confidence in their abilities as writers or producers since none of them had any experience in that arena. Ron Alexenberg a.s.sured Walter that "demos" roughly recorded samples of songs penned and produced by the Jacksons, which Joseph had submitted, showed great promise. Still, Walter was not swayed. Therefore, the best Joseph could negotiate was that his sons would be able to choose at least three songs on each alb.u.m, written by them or someone else. Also, there was an understanding that if the group came up with three good songs of their own, those tunes would receive fair consideration for use on an alb.u.m. This, too, was more than they had ever gotten at Motown. However, the concession was not to be in the contract. It was verbal, and anyone knows that in the world of business a verbal agreement is tough to enforce. Still, at least there was some dialogue about the notion of the group having artistic freedom. Joseph was confident that his boys would only have to prove themselves one time... and after that they"d never look back.
Michael was amazed by the contract CBS had offered the family. He had no idea that the group was worth so much and that this was the kind of contract other superstar acts were accustomed to in the record business. He had to admire his father"s tenacity. After all, had it not been for Joseph, The Jackson 5 might have slid into obscurity at Motown. "I had to admit it," Michael later noted, "this was one incredible record deal. My father did an amazing job for us."
Still, Michael was torn between the notion of loyalty to Berry and that of good business sense. He decided to discuss the matter with Diana Ross. Her reaction was predictable. She said that she had no influence over Berry where business matters were concerned and she wasn"t lying, she didn"t but that Michael should listen to him because, as always, he knew what was best for all of his artists. "I just believed that the boys should stay at Motown," she recalled in a 1981 interview. "I was loyal to Berry at that time, and I felt that they should be as well. I told Michael that loyalty is the most important thing, not money."
In six years Diana Ross would change her mind about being loyal to Berry Gordy and Motown. When she was having her own disagreements with him and decided to check on her value at other companies, RCA offered her $20 million, much more than what Berry could offer her. She turned to Smokey Robinson for advice. Smokey gave her the same advice she had given Michael about loyalty to Berry. However, she felt she had no choice. It didn"t make sense to turn down that much money: she signed with RCA.