An artist management contract is a document used by artist managers or other authorized representatives. The management contract model intends to manage or support an artist`s career. Some documents are also used to conclude contracts with third parties for the benefit of an artist`s career. The standard contract provides that the artist (or the artist`s accountant) will collect all revenues. It may be more appropriate for a manager to collect revenue and, if so, appropriate safeguards should be provided with respect to copy accounts, audit rights and account access. (i) Live Concert Commission – some executives still try to insist that they collect their commission on gross receipts from live concerts, including concerts and tours. As far as possible, this should be refused, given that live performance costs can be quite large, but expenses, especially for a new artist, can be even greater and many tours lose. If the manager calculates his commission on gross income, it could be that not only does the artist make a loss on the concert or tour, but then, to insult the injury, he is forced to pay a manager a commission on funds he does not have. Most managers, if put under pressure, will agree to take their commission only from net income, and that is what is in the draft contract. Sometimes executives want to get a higher percentage (usually 25%) of net income, and while this should be denied, it`s usually best to pay gross revenue. A written document between the manager and the artist must contain a breakdown with all the details of their relationship. This will ensure that the manager and the artist know what to expect. Although the written agreement does not guarantee that there will be no conflicts, it does facilitate the management of these situations.
The duration of the period covered by the agreement is called the duration. The duration can be a certain number of years.- There may also be extensions that can occur automatically, unless one of the parties informs the other, on a given date, that the duration should not be extended or perhaps on the basis of certain thresholds. A threshold may be obtaining a certain level of income. For example, a period of one year may extend to a second year if the artist received some income in the first year. The standard management fee is usually around 15% – 20% of your income. Your manager takes a portion of the revenue from album sales, each label advance, and the revenue from deals he`s negotiated. Some don`t get your money from your merchandise sales, songwriting royalties, or deals they haven`t negotiated (unless you have a prior agreement that says otherwise). Remember that if you are a small group that has not yet obtained income, 15%-20% of nothing is still nothing. Perhaps you would like to keep this earning potential in mind by pinpointing the details of the job outlook. An oral agreement to help an artist in exchange for 10% can cause litigation, an accelerated end to the relationship and/or the fear that the other person will take legal action at some point if there is a lot of money at stake.
The announcement earlier this year that not only are the Spice Girls regrouping, but also joining forces with their former manager Simon Fuller, focused on the theme of management contracts in the music industry. The Spice Girls began working with Fuller in 1995. After directing her to superstar status, Fuller was fired by the band in 1997. This clause limits the manager`s participation in the artist`s career only to the artist`s activity in the music industry or to activities (such as merchandising and sponsorship) resulting directly from those musical activities. . . .