Although
I’m still a quasi-rookie in the realm or artist management,
I am fairly certain that nearly all musicians contemplate whether
they want (or need) someone outside the box to handle the band’s
affairs. Yes…the inevitable discussion as to whether having
management or representation is beneficial or detrimental. For
obvious reasons, I tend to lean toward the former rather than
the latter. That being said, artist management can be, and has
been, a critical component in the overall success of a band’s
career. More specifically, once a band truly launches and expands
beyond the confines of their garage, the complexities, intricacies
and the overall pandemonium can quickly become overwhelming. Who
better to relinquish that stress that someone who knows not how
to conduct themselves on the stage, but rather, how to conduct
business behind the scenes?
As
a band begins to shed its amateur skin and step into the big leagues…e.g.
releasing full-length albums, shopping to labels, touring, merchandising,
gaining endorsements, etc., the focus sometimes detracts from
the musicianship aspects and instead focuses on the inevitable
paper-pushing if the band elects to handle these tasks itself.
As most successful bands would agree, at this junction the band
needs to seriously consider whether it can afford to employ someone
else to handle these tasks…or better yet, whether the band
can afford not to. More often than not, local bands attempt to
pursue booking agents, managers, A&R representatives and other
music industry executives on their own. Some do so with great
success. However, the vast majority seem to communicate with inappropriate
personnel (assuming they are able to communicate with anyone)
as many of these entities and individuals refuse to speak to artists
directly or to receive unsolicited materials. Hence, having a
Manager can work wonders for bands; especially if the Manager
has an established network of connections in the entertainment
industry (e.g. labels, booking agents, talent buyers, radio, print,
television, merchandising, etc.). However, I feel compelled to
note that not all Managers are capable and qualified to assert
the title of “Manager”. As such, be sure to conduct
a fair amount of research before selecting a Manager. Ensure a
potential Manager functions with integrity; that they uphold the
highest level of ethics; and most importantly, that they believe
in you and can spare the time to take you to the next level. In
other words, be weary of Managers that are working with tons of
acts—you want a Manager who is loyal, devoted and can truly
give you the attention you need and deserve. Don’t get me
wrong, some of the greatest Managers of our era have balanced
more than one act. Also, check their references…contact
their clientele, Google them, and if they are part of a business,
check out the local Better Business Bureau to confirm there hasn’t
been any complaints (as just a starting point!). And, don’t
be afraid to be honest and upfront to a potential Manager about
what you hope to gain from the relationship, what your financial
boundaries are, and make sure the potential Manager provides a
platform of where he or she wants you to be in one year (or six
months) and how he or she intends to take you there. Finally,
as an attorney, I can’t stress this enough….GET THE
ARTIST MANAGEMENT AGREEMENT IN WRITING AND HAVE INDEPENDENT COUNSEL
REVIEW IT ON YOUR BEHALF BEFORE SIGNING ANYTHING! Many of these
Agreements can be elaborate and filled with legal jargon; as you
recall from my previous Article on Trademarks; legal jargon tends
to use words we are all familiar with, but in the legal world,
these words are deemed “terms of art” with very distinct
(sometimes different) meanings. As such, it is absolutely imperative
that you have a qualified attorney review any such document (and
usually that’s not just any attorney, but rather an entertainment
or intellectual property attorney).
In
closing, here is a general (brief) list of terms that the artist
or band should include in any Artist Management Agreement to better
establish their protection:
(1)
Intellectual Property – This should always be the band’s
number one priority. As noted in my previous copyright and trademark
articles, the band must ensure that any Agreement it enters into
(to the extent possible) allows the band to own the copyrights
to its material (e.g. underlying composition, sound recording)
and if applicable, any relevant trademarks.
(2) Term/Duration – This term sets forth how long the respective
parties want this Agreement to last (e.g. be binding and enforceable)?
(3) Manager’s Responsibilities – This term is of utmost
importance to the band….be concise, avoid ambiguities and
try to be over-inclusive rather than under-inclusive (yet very
specific in the extent of responsibility/authority the band is
granting to the Manager-e.g. the ability to execute contracts
on the band’s behalf or the ability of the Manager to permit
and authorize publicity and advertising, etc.) NEVER GIVE A MANAGER
UNFETTERED DISCRETION; ALWAYS TRY AND HAVE A SAY IN WHETHER TO
PERFORM AT A VENUE, WHETHER TO ACCEPT AN INTERVIEW OR ENDORSEMENT,
ETC.
(4) Artist Responsibilities – This term tends to focus on
requirements of the Artist in relation to the Manager’s
Responsibilities.
(5) Compensation to Manager – Be clear and concise. Generally
Managers take a percentage of your profits (The band should demand
that such compensation is derived from net profits). This can
include profits derived from live performances, merchandising,
record/demo sales, endorsements/sponsorships, deals (development,
recording, distribution, publishing, etc.). In my experience,
Managers have earned between 5-30% depending on the Manager’s
reputation, ability, network, and other acts on his or her roster
(among other factors).
(6) Accounting and Auditing Rights – If your Manager is
acting as the band’s accountant, you must have a right to
inspect and audit his or her books upon reasonable notice. This
should include ledgers, journals, receipts, checks and all other
financial records.
(7) Termination – This term should clearly state the circumstances
under which each party can terminate the Agreement. This term
is generally separated into multiple terms with one defining “good
cause termination” and other defining “material breach
termination.” Be sure to have an attorney explain the differences
between, and what constitutes, “good cause” vs. “material
breach”, as your actions and the consequences thereafter,
can drastically vary with these terms.
These
seven terms are crucial to the band’s protection when entering
into an Artist Management Agreement. That being said, there are
several other terms that are generally incorporated which attorneys
reference as “boilerplate provisions” used in nearly
every type of contract, and other terms that may be incorporated
in the Agreement specifically for a particular band or Manager,
depending on the circumstance. Remember, that when entering into
an Agreement generally there is room for negotiation. As such,
your lawyer should not hesitate to request that terms be added,
removed, or modified, and to negotiate terms like duration and
compensation in your best interests.
This
article should give you some general insight into Artist Management.
However, it represents only a miniscule fraction of what the industry
entails. As such, I reiterate the importance of doing your homework
and ensuring that the person who you employ to represent your
band is not only capable, but fitting for who you are and what
you represent. Granted, there are no guarantees of success, not
even with the management moguls. However, the likelihood of success
may be greatly heightened by a Manager who is not only reasonable
and ethical, but one who believes in you more than even you might
believe in yourselves.
|