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Zak constructs a dangerous plan to bring down Richie. Kip's excesses threaten an important Nasty Bits gig. Clark and Jorge's efforts pay off. Richie is privy to the birth of a legendary music venue.

New York City, 1973. Together with his partners, Richie Finestra, president of American Century Records, is on the verge of selling his struggling company to German Polygram, in a deal that includes an impending distribution agreement with Led Zeppelin. But after a disastrous meeting, it's clear that the sale is in jeopardy.

Devon retreats to safety among old friends at the Chelsea Hotel as Richie continues to descend into a lifestyle of debauchery.

At a record producers' banquet honoring Maury Gold, Richie is embarrassed when the emcee, rival record exec Jackie Jervis, makes a joke about the failed German Polygram deal. Later, Maury and mob cohort Corrado Galasso pay a visit to American Century to probe a detective's recent inquiry, and Joe Corso drops by to pitch Richie a demo by his banquet date, Nora.

Richie manages to get on the good side of a funk superstar. Skip attempts to get rid of some Donny Osmond records.

With German Polygram executives in town to complete the deal for American Century, Richie delivers a bombshell that shocks the prospective buyers, as well as his partners, Zak Yankovich, ACR's head of promotions, and Skip Fontaine, head of sales. When the dust settles, the Germans storm out of the ACR offices, leaving Richie to face the ire of Zak, Skip and company attorney Scott Levitt.