Complex sentence: Essex's manager started looking for a new record deal for him, and signed one with Phonogram Records, who suggested that he release one of the songs from the "Evita" album as his single.
Split into simpler sentences: Essex's manager started looking for a new record deal for him. A new deal was negotiated with Phonogram Records, who suggested that he release one of the songs from the "Evita" album as his single.