Other elements of a management agreement are the artist who confirms that she has the power to enter into the contract, the rights of each party if the other party violates the agreement, the extent to which the leader can cede (give) the rights of the leader to another person as part of the agreement, and the details on how to terminate the agreement earlier than expected. One of the objectives of this article is to go through some of the essential clauses that would normally appear in a music management agreement. When a manager works with an artist, he must enter into an artist management contract. Whether the manager establishes a talent management contract, a music manager contract or any other type of contract, the document helps to maintain and even strengthen the relationship between them. Below is a brief “guided tour” of the important elements of the agreement. A document written between the manager and the artist must contain a structure with all the details of their relationship. This ensures that the manager and the artist know what to expect. Although the written agreement does not guarantee that there will be no conflicts, it is easier to deal with such situations. A short-term agreement can also be referred to as a “test time.” It serves as a formal “meeting phase” and can be organized very easily: it is easier to resolve conflicts with a written contract, especially when it comes to money.
When creating an artist management contract, there are certain clauses that you need to include to ensure its effectiveness. These clauses are: It is very important that the manager is not able to sign registration, publication or merchandising agreements on your behalf. However, most major record labels and publishers would be unhappy with any situation in which a leader claimed it. It`s the same for managers. They want to work with artists with whom they can have open discussions, especially on all the topics contained in the agreement. A good relationship is important, especially if the manager and the artist want to work together for a long time. If the manager gives you an agreement with a major label around 2017 (album released in June 2017), but you separate the companies in September 2017 it is right that the manager continues to take their commission on royalties from the sale of this album. After all, it was your hard work that brought you the agreement.
But you skip five years and you have a new manager, if the former manager takes another commission on the old deals? Or the new manager should take over the Commission (given that he has not done any work for the deals). For example, to combat this problem, the management contract should include “sunrise provisions”: for the first five years after termination, the manager receives 20% commission for all contracts signed during the term, 15% for the next five years, 10% for the next five years and 5% for the next five years, after which he receives nothing. Of course, this is just one example and the actual amounts may vary depending on the situation. Before writing a full contract, perhaps with the help of a lawyer, you should determine precisely your goals and what you are willing to do with your client, as well as what you expect from the agreement in what is called a memorandum of understanding.