THE 50-50 SPLIT

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The Colonel had worked out a new contract with RCA that permitted the company to release either two singles or two EP's from previously released material in addition to their regular four singles and two LP's per year. RCA at this point paid off the remainder of the $1,000-per-week guarantee spelled out in 1956 for the duration of the contract (Elvis received a lump sum of $259,995, the Colonel got $86,665), substituting new non-returnable payments that added up to $150,000 and $50,000 annually. This appeared to be in addition to the $400,000 combined annual payments contracted for the previous year (these were not designated "non-returnable"). For the first time the RCA contract spelt out a new arrangement between Elvis and the Colonel in which payments for all special side deals (that is, deals outside the 5 percent royalty paid for everything released by regular contractual arrangement) will be split 50-50 between the star and his manager. Elvis formally acknowledged his acceptance of this new arrangement with his signature on a line marked 'Accepted and Agreed To," evidently embracing the Colonel's argument that they are engaged in what amounts to a "Joint venture" on these specially arranged deals. In addition, RCA increased the three-fourths of 1 percent royalty that had been going to the Colonel for "exploitation" to a full 1 percent, to be split 50-50 between Elvis and his manager. The contract period extended through 1966. (photo)