Asylum was founded in 1971 by David Geffen, and partner Elliot Roberts, both of whom had previously worked as agents at the William Morris Agency, and operated a folk/rock label. They had also previously founded their own management company. While unsuccessfully pitching a recording contract for their client Jackson Browne to Atlantic Records president Ahmet Ertegun, Geffen said, "You'll make a lot of money." Ertegun replied, "You know what, David, I have a lot of money. Why don't you start a record company and then you'll have a lot of money." A deal was then struck in which Ertegun would put up the initial funds, Atlantic Records would distribute Asylum Records, and the profits would be split 50/50.