News about disputes between artists and managers have been making the rounds lately bordering on issues ranging from the managers being owed commissions by their artists to artists abandoning managers believing that they have grown too big for their managers. All this information has made for interesting news at the financial and emotional expense of the managers. It therefore goes without saying that managers should take more care when getting into management relationships with artists.
The role of a manager requires integrity, hard work and consistency; it is a highly tasking profession and so should be treated as such – a profession! Managers should endeavor to take their roles as professionals seriously as this will determine to a large extent how they are treated. It is paramount that an Artist Management Agreement is entered into and that each party’s interest is represented by an Entertainment Lawyer. Provided below are some crucial terms to keenly negotiate in such agreements:
i. Commission: the commission to be paid to the manager should be agreed from the onset and it should be made clear what earnings such commissions would apply to. Issues like the following should be discussed and agreed:
• the percentage of the artist’s royalties that the manager can earn;
• the percentage of the artist’s live performance fees that the manager would be entitled to;
• whether the manager would be entitled to a percentage of endorsement fees and earnings from merchandising, and so on.
ii. Expenses: this is one of the most important provisions as we have seen from several real-life situations that both parties contend over money paid by the mangers on the artists’ behalf to settle minor expenses. To avoid this, the procedure for spending money on behalf of artists should be clearly set out in the contract so that the manager is clear on the amount of money he can expend without the authorization of the artist and to ensure that the artist is bound to reimburse payments made by the manager that went through the agreed approval process.
The contents of this news alert are meant for the general information of our clients and friends and do not amount to legal advice. All enquiries on the subject may be made to: email@example.com
Adepetun Caxton-Martins Agbor & Segun
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