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Desi Arnaz: 1917-1986: Bandleader, Entertainer, Producer
Xavier Cugat, then the king of Latin music in the United States, caught Arnaz's act one night and hired him, but Arnaz had to accept a salary cut down to 25 dollars, on the understanding that, if he did well, they would renegotiate.
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Arnaz turned out to be very popular and soon was bumped to thirty-five dollars. Before long Arnaz decided he could do better on his own and told Cugat he intended to form his own band. Cugat offered instead to let him bill his new act as the Desi Arnaz and his Xavier Cugat Orchestra.
Arnaz agreed to pay Cugat a royalty of 25 dollars per week to use his name.
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When Cugat asked why only 25 dollars, Arnaz—already displaying his business savvy—gave Cugat the same deal Cugat had given him. He told Cugat that if they did well, they would renegotiate. Arnaz debuted his new band in 1937.
The opening was a disaster; two of the musicians were not even Latin. For the next night, Arnaz played the c