Backstreet Boys sign deal heavily weighted in Lou Pearlman’s favor: Part 3

The deal allowed Pearlman to get paid as a manager and as a sixth member of the group. The boys record “We’ve Got it Goin' On” co-written by Max Martin, launching their success in Europe.
5:14 | 12/14/19

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Transcript for Backstreet Boys sign deal heavily weighted in Lou Pearlman’s favor: Part 3
I adore I adore we are more Went to all the major record labels. And they all turned us down. And they all said, "No way." Until we found jive records that said, "Yeah, we'll try it with you." When the band came to new York to sign the record contract, Denise, who was a.j.'s mother, wanted an outside lawyer to look at the contract. And Lou says, "Absolutely not. It's now or never." And so she signed. Hey, we signed a contract. Let's move forward. And let's make a lot of money together. And let's make this thing happen. They were all happy and congratulating that we did it. And the parents signed on the guardian lines. When he signed the record deal as the manager with the backstreet boys, he not only made himself the sixth member of the band, so that he would get paid what they got paid, he also paid himself as the manager. Lou was really always focused on the payday. The bigger picture was always the payday at the end of that road for Lou. Why is that so important to you to be called one of the band members? Well, one is, I share in the income. Money aside, money aside. Backstreet boys is a part of my life as much as it is theirs. The group needs material. They need good songs. And jive has a relationship with a studio overseas. Jive says, "Hey, Lou Pearlman, how about sending your guys to Sweden to record?" You know what Lou Pearlman says? "Absolutely." They tapped in to this amazing songwriting talent, producing talent, out of this studio in Stockholm. Max martin is this Swedish songwriter/producer. He became an unparalleled hitmaker. He is responsible for more number one singles than just about any writer/producer of the last 40 years. He's going to write "Baby one more time." Baby one more time I got the eye of the tiger He'll work with Katy Perry. He'll co-write "Roar" for her. Max will go on to work with Taylor Swift. They'll co-write "Shake it off." Max martin's career takes off with the backstreet boys. He co-writes and co-produces "We've got it going on." We've got it going on It only hit number 69 on the hot 100. But over in Europe is working as a top ten. So we went to Europe to promote it. At that point in time, boy bands were big in Germany. I knew if they had their best shot, it was in a market where boy bands were super successful. They go to Germany. And they're a huge hit. There are people clamoring for them. The girls went nuts. It was just crazy. So they blew up over there. You can see this mania that the backstreet boys set off in the German fans from this German TV clip. So despite selling a million cds and touring throughout Europe and Canada, they are still basically unknown in the United States. We used to call America no fan land. Everything will change in 1997 with the release of the album "The backstreet boys." And this song co-written by max martin. Quit playing games with my heart As far as boy band music videos, the template was set by "Quit playing games with my heart." Five boys begging a girl not to break their heart in the pouring rain. After almost five years together, the backstreet boys will finally hit it big in America with songs like "Everybody." and "As long as you love me." Please welcome the backstreet boys. To the delight of their screaming fans the boys do rounds on talk shows like "Regis and Kathie Lee." We hoped that we'd be successful. But we never imagined this would happen. Meanwhile, while all of this work on making backstreet boys a hit is going on, Lou is thinking, "Hmm, this is a good idea. And someone else is going to come along and try to copy this idea. Why shouldn't that person be me?" So backstreet thinks that they are Lou's only love. They are not Lou's only love. There's another band that Lou Pearlman is putting together, a rival boy band that will make backstreet feel a little backstabbed. And I want it that way

This transcript has been automatically generated and may not be 100% accurate.

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