Exam 1: Management team Flashcards
4 keys players of professional team
- Personal Manager
- Business Manager
- Agent
- Attorney
person on the professional team in overall charge of the team
personal manager
How are a rockstar and a brain surgeon similar
they can both make a lot of money without knowing anything about business. Keeping it is a different story…
member of the team that should be an artist profesional point of contact
personal manager
gross income
total income before recoup of expenses etc.
value billing
fee is based on size of the deal and contribution of the attorney
conflict of interest
occurs when attorney has 2 clients that have opposing interests. it can happen when clients want to sue each other or make a deal together
ways to avoid or resolve conflict of interst
- both clients choose to ignore conflict (waive the conflict)
- both get a new attorney (rare unless really serious)
- one client gets new attorney (common)
- clients work out the deal and attorney draws up the paper work
power of attorney
the artists gives the manger limited power of attorney. if verbal approval is given, the manger can sign for the artist
Is the cheapest attorney always the best way to save money on a contract?
no
Attorney hourly fee range and typical percentage if based on percentage
150/hr if new
600/hr if established
or 5% off some advanced paid or monies made
an album cycled (begin and end?)
album cycle begins when preparing to record, ends when all promo and gigs for that album are complete
current trend for management contracts in pop and rock
contracts for album cycles, not years
Role of the personal manager
- help with major decisions
- help w creative process
- promoting the artist
- assembling head team
- coordinating tours
- work w record label
role of business manager
manages finances for artists
role of the agent
books dates and gigs for artis
role of attorney
draw up, look over contracts and advise client about law and legal matters
personal managers typical commission and what income sources
15%-20% off of total gross income
typical term for a personal manager agreement
3-5 years. typically 3 years witj two options (now geared toward album cycles)
legitimate deductions from artists income before paying personal manager
- recording costs
- money paid to producer
- co-writers
- cost of collection
- tour support
- sound and light
- opening acts
percentage of gross a solo artist typically takes home from a concert event
lucky to take home 40%
percentage gross that a member of a 6 piece band takes home. in relation to the personal manager?
15% gross (wayyy less than manager)
net income
income after deduction
provisions that a manager would want if agreeing to net
- the manager isn’t paid if artists loses money
- manager will ask for limits on expense
a management contract based on escalating scale. pros/cons?
15% until certain gross income and then 20% once certain level is reached.
this is good for the artist because they give away less money
deescalating scale
takes 20% until certain price is reached, then go down to 15% manager takes more in beginning from lower amount, takes less from larger amount
exclusivity for personal managers
artists can only have one personal manager
sunset clause
manager gets paid until final cut off date. last for 3-5 years with declining percentage
key man clause
person names in a contract whose exit can break the deal (if your keys persona leaves so do you)
double-dipping
contracts set up at a cooperate level
typical percentage of business managers commission and what sources
5% on anything they touch
credentials required to be a business manager
technically none (bad idea though)
desirable credentials of potential business manager
CPA (certified public accountant) must know music business
if not based on percentage how to business manager get income
- flat rate
- hourly fee
cons of hiring family members as business manager
- never put money in between a relationship
- they need to know music business
how often should a business manager provide reports
monthly
should a good business manager ever be audited
no(?)
a retainer
hourly or monthly income
typical agents commission and from what sources
10% of garuntee
source from the jobs they book
typical income sources not commissioned by the agent
merch, album sales
current trend for the scope of an agents representation
international and all entrainment industries (books, movies)
who does the agent report to if the artist does not have a manager
the artist
typical term for agent contract
3+ years
a “handshake deal”
without contract
typical territory for an agent contract
international (now the universe)
who always wants the management contract longer? shorter?
artist wants it shorter.
