Dip artist management artist contracts

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Dip artist management artist contracts

  1. 1. ARTIST MANAGEMENT CONTRACTS Week 3 MSIT TAFE Blair Hughes
  2. 2. Why?  One of the most important contracts an artist will sign is an artist management contract. Entering into a written management agreement will make it clear the services a professional artist manager will or will not provide to an artist and make it clear how the manager will get paid.  This agreement sets forth a broad range of agreed upon parameters related to the structure and details of an artist’s career and the various sources of revenue generated.  Choosing a personal manager is a critical moment in an artist’s career and a document such as this indicates in detail many important financial and informational guidelines that will govern the legal aspects of a relationship between an artist and manager.
  3. 3. Management Skills A manager should have one of the following but ideally all:  Money – it can be expensive process getting the band known  Experience – knowledge of how the industry works and how it is changing  Contacts – he has to know the right people and be liked and/or respected  Enthusiasm – if he doesn’t believe in you then how is he going to persuade others
  4. 4. Band Management Contracts There are a few basics to keep in mind about music manager contracts.  Doesn't Have to be Complicated!  Should be Mutually Beneficial  Should be Signed in Good Faith.  The Job Expectations  Contract Term  The Management Fee  The Manager's Expenses: Your manager should not be out of pocket for business expenses for promoting your band, but you need to reach an agreement on how expenses will work.  Words of Caution: Music manager contracts can be very specific to your circumstances, and so the advice above is a guide and does not represent not hard and fast rules.
  5. 5. Management Contract Checklist 1 Manager Details Company or individual? (If company, can artist terminate if key individual moves on?) 2 Artist(s) Details Contracted as group or as individuals (or both) 3 Territory Australia, Australasia, World? 4 Term a. Initial period (*up to 3–4 years. Probation period?) b. Options to extend (and if so, at manager’s option or by agreement?): i. Number ii. Length iii. Performance triggers (*Record deal? Publishing deal? Income turnover figure?) 5 Management Outside “Home” Territory? a. Who selects (requires artist consultation or approval?) b. Who pays (manager normally pays, out of commission)
  6. 6. Artist Management Checklist 6 Remuneration a. Commission percentage (*10–20%) b. On what? Are the following excluded? i. Recording & Video costs ii. Live performance costs (agents, supports, sound and lights? Accommodation, trucking etc?) iii. Merchandising costs iv. Other 7 Services Of Manager a. Exclusive manager? b. Role c. Powers d. Restrictions i. What types of deal require artist’s personal signature? ii. How much of the artist’s money can manager spend at any one time? e. Reporting of actions/activities 8 Arrangements For Banking And Accounting a. Bank account b. Signatories/Authorised Operators c. Accountant d. Who keeps books & where? Business management (manager or outside book–keeper)? e. Right to Audit 9 Remuneration Upon Termination Sources of income: i. Recordings (released during Term or within period following) ii. Publishing (songs released during Term or within period following) iii. Live work (gigs booked during Terms, occurring after term) v. Other 10 Post–Termination Commission a. Period (2–5 years) (other than where terminated for manager’s breach) b. Percentages (decreasing each year)
  7. 7. The Contract ‘Term’ or Length  The length of your agreement with the music manager is a good place to start. You will need to agree upon a term and a contract cancellation policy.  A fair contract term is a one year agreement, with an option to extend the agreement at the end of the year if both parties agree. At that point, you can look at negotiating longer agreements, but a one year term is a good trial term for both parties. Be wary of giving the music manager options to extend without your agreement; if you do, you can be forced to stick with a manager you don't want.  Be sure your contact specifies how both parties can leave the deal.  If you are an artist, try a one release deal
  8. 8. Exclusivity:  The manager will be exclusive to the artist.  What this means is that the artist may not hire anyone else to act with the same capacity or with the same authority or to provide the same services as the manager.  The artist will have the right to hire a lawyer for legal advice, a booking agent for employment or booking opportunities, a business manager to handle the artist’s money, etc. And in fact the manager will work with all of these people.  While some manager’s contracts will not make this clear, other than to state that the manager is exclusive, an artist should try to make it clear in the contract and a manager should be flexible and realistic enough to understand that the artist will need others to assist in the artist’s career.
  9. 9. Authority:  Another important and highly negotiated set of terms in the contract relate to the authority the manager will have to do things on behalf of the artist.  The manager usually wants authority to: (i) negotiate contracts on behalf of the artist; (ii) be the sole representative to third parties; (iii) accept payment and deposit the payment into a bank account; (iv) pay third parties for services, and; (v) make publicity decisions and authorize the use of the artist’s likeness and name in publicity matters.  There is a balance between what the manager can do without the artist’s approval and not slowing the manager’s efforts down to obtain the artist’s approval on all things. Again, if the manager has a good reputation and represents many successful artists, the artist usually will have less need for oversight in these areas than if an the manager is just starting out. An artist should insist on being apprised of a manager’s actions on the artist’s behalf, especially matters dealing with money. But the artist should try to avoid micro managing his or her career, after all this is why the manager was hired.
  10. 10. Payment  Managers are generally paid a percentage of the band's income: often 15% to 20%. In addition to their percentage, managers should not have to cover any expenses out of their own pocket.  There are some things a manager should NOT get a cut of. These including songwriting royalties.  You should be aware that there are many different kinds of management deals out there, and the changing face of the music industry has meant a change in management deals. Essentially, the way musicians make their money is in flux, and since the income of the musicians is directly tied to the income of the managers, managers need to make sure they are able to tap into the new sources of money.  Any deal between musicians and managers should be negotiated up front and revisited when significant events occur that could drastically increase or decrease the band's income.  360 deals
  11. 11. Task 1: Artist Management Contract 1. Peruse a wide range of artist management contracts as listed on the forum 2. Start to pull ideas/lines from these to create YOUR own unique artist management contract template so that you have one ready to go for your artist 3. How is yours different to your classmates? Share them 4. What other ideas have you included in your contract? 5. Post to forum for my perusal
  12. 12. Band Management Contract Template

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