Within weeks of the CBS contract, Stephen was effectively fired by the band, with one of the alleged reasons being that Mike had not permitted Stephen to sign on his behalf while at a TM retreat in Switzerland. For Stephen's replacement, the group hired Carl's friend Henry Lazarus, an entertainment business owner that had no prior experience in the music industry. Lazarus arranged a major European tour for the Beach Boys, starting in late July, with stops in Germany, Switzerland, and France. Due to poor planning, the tour was cancelled shortly before it began, as Lazarus had failed to complete the necessary paperwork.The group subsequently fired Lazarus and were sued by many of the concert promoters, with losses of $200,000 in preliminary expenses and $550,000 in potential revenue.
In July, the Beach Boys played a concert at Wembley Stadium that was notable for the fact that, during the show, Mike attacked Brian with a piano bench onstage in front of over 15,000 attendees. In August, Mike and Jardine persuaded Stephen to return as the group's manager, a decision that Carl and Dennis had strongly opposed. By this point, the band had effectively split into two camps; Dennis and Carl on one side, Mike and Jardine on the other, with Brian remaining neutral. These two opposing contingents within the group – known among their associates as the "free-livers" and the "meditators" – were traveling in different planes, using different hotels, and rarely speaking to each other. According to Love, "[T]he terms 'smokers' and 'nonsmokers' were also used."
On August 22, 1977, Dennis released Pacific Ocean Blue, the first solo album by a Beach Boys member and is now considered a cult-classic by music fans today. A habitual party animal and womanizer, the theme of Pacific Ocean Blue was based off Dennis' struggles in life and the conflict between love and hate, particularly in his mercurial relationships with women.
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