Some people think it was one of the worst business deals ever made. On Nov. 20,…
Written by megarock on November 20, 2017
Some people think it was one of the worst business deals ever made.
On Nov. 20, 1955, at a meeting at New York City’s Warwick Hotel, Sun Records owner and producer Sam Phillips sold Elvis Presley’s contract to RCA for an unheard-of $35,000, at that time the largest amount ever paid to sign a recording artist.
Elvis receives $13,500 of the total leaving Phillips just $21,500.00. Elvis would go on to sell millions and millions of records, making RCA millions.
But Sam realized that his company was not big enough to make Elvis the star that RCA would. It was what was needed for Elvis’ career.
As far as Sam goes, he did pretty good. He invested his share of the money in a local hotel chain. That local chain grew a little. The local hotel was called the Holiday Inn.
62 years ago today, two careers were made better.