Exam 1: Management team

Question 1

4 keys players of professional team

Answer 1

1. Personal Manager
2. Business Manager
3. Agent
4. Attorney

Question 2

person on the professional team in overall charge of the team

Answer 2

personal manager

Question 3

How are a rockstar and a brain surgeon similar

Answer 3

they can both make a lot of money without knowing anything about business. Keeping it is a different story…

Question 4

member of the team that should be an artist profesional point of contact

Answer 4

personal manager

Question 5

gross income

Answer 5

total income before recoup of expenses etc.

Question 6

value billing

Answer 6

fee is based on size of the deal and contribution of the attorney

Question 7

conflict of interest

Answer 7

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

Question 8

ways to avoid or resolve conflict of interst

Answer 8

• 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

Question 9

power of attorney

Answer 9

the artists gives the manger limited power of attorney. if verbal approval is given, the manger can sign for the artist

Question 10

Is the cheapest attorney always the best way to save money on a contract?

Answer 10

no

Question 11

Attorney hourly fee range and typical percentage if based on percentage

Answer 11

150/hr if new
600/hr if established
or 5% off some advanced paid or monies made

Question 12

an album cycled (begin and end?)

Answer 12

album cycle begins when preparing to record, ends when all promo and gigs for that album are complete

Question 13

current trend for management contracts in pop and rock

Answer 13

contracts for album cycles, not years

Question 14

Role of the personal manager

Answer 14

• help with major decisions
• help w creative process
• promoting the artist
• assembling head team
• coordinating tours
• work w record label

Question 15

role of business manager

Answer 15

manages finances for artists

Question 16

role of the agent

Answer 16

books dates and gigs for artis

Question 17

role of attorney

Answer 17

draw up, look over contracts and advise client about law and legal matters

Question 18

personal managers typical commission and what income sources

Answer 18

15%-20% off of total gross income

Question 19

typical term for a personal manager agreement

Answer 19

3-5 years. typically 3 years witj two options (now geared toward album cycles)

Question 20

legitimate deductions from artists income before paying personal manager

Answer 20

• recording costs
• money paid to producer
• co-writers
• cost of collection
• tour support
• sound and light
• opening acts

Question 21

percentage of gross a solo artist typically takes home from a concert event

Answer 21

lucky to take home 40%

Question 22

percentage gross that a member of a 6 piece band takes home. in relation to the personal manager?

Answer 22

15% gross (wayyy less than manager)

Question 23

net income

Answer 23

income after deduction

Question 24

provisions that a manager would want if agreeing to net

Answer 24

• the manager isn’t paid if artists loses money

- manager will ask for limits on expense

Question 25

a management contract based on escalating scale. pros/cons?

Answer 25

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

Question 26

deescalating scale

Answer 26

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

Question 27

exclusivity for personal managers

Answer 27

artists can only have one personal manager

Question 28

sunset clause

Answer 28

manager gets paid until final cut off date. last for 3-5 years with declining percentage

Question 29

key man clause

Answer 29

person names in a contract whose exit can break the deal (if your keys persona leaves so do you)

Question 30

double-dipping

Answer 30

contracts set up at a cooperate level

Question 31

typical percentage of business managers commission and what sources

Answer 31

5% on anything they touch

Question 32

credentials required to be a business manager

Answer 32

technically none (bad idea though)

Question 33

desirable credentials of potential business manager

Answer 33

CPA (certified public accountant) must know music business

Question 34

if not based on percentage how to business manager get income

Answer 34

- flat rate | - hourly fee

Question 35

cons of hiring family members as business manager

Answer 35

- never put money in between a relationship | - they need to know music business

Question 36

how often should a business manager provide reports

Answer 36

monthly

Question 37

should a good business manager ever be audited

Answer 37

no(?)

Question 38

a retainer

Answer 38

hourly or monthly income

Question 39

typical agents commission and from what sources

Answer 39

10% of garuntee | source from the jobs they book

Question 40

typical income sources not commissioned by the agent

Answer 40

merch, album sales

Question 41

current trend for the scope of an agents representation

Answer 41

international and all entrainment industries (books, movies)

Question 42

who does the agent report to if the artist does not have a manager

Answer 42

the artist

Question 43

typical term for agent contract

Answer 43

3+ years

Question 44

a "handshake deal"

Answer 44

without contract

Question 45

typical territory for an agent contract

Answer 45

international (now the universe)

Question 46

who always wants the management contract longer? shorter?

Answer 46

artist wants it shorter.