Key Terms in a Management Contract

A management agreement is a crucial document in the music industry that establishes a formal relationship between the artist and their manager. It outlines the rights and responsibilities of both parties, serving as a roadmap for their professional collaboration.

 

Some of the key terms to look out for in a management agreement include:

• Exclusivity: Does the contract grant the manager exclusive rights to represent you in all matters, or are there carve-outs for specific types of work?

 

• Duration: This specifies the length of the contract and renewal process. Is the contract renewable automatically or upon the occurrence of an event(s)?

 

• Compensation:  This section details the manager's fee structure, including retainer fees, commission percentages, and any bonuses for achieving milestones. Artistes should pay particular attention to this.

 

• Sunset Clause: This clause outlines the  phased reduction of the manager's commission over time.

 

• Expansion Clause: This specifies the territories or areas the contract covers.

 

• Keyman Clause: This clause addresses what happens if a key person, like the manager or artist, leaves the  agreement. It also addresses post-termination obligations of the respective parties.

 

• Governing law & Dispute Resolution: In every relationship, parties should be able to agree on how any dispute that arises between them should be resolved and which law to apply to resolve the same.

 

 It's crucial to carefully review the entire contract to ensure you understand all its terms. Consulting a lawyer specializing in entertainment law is highly recommended to protect your interests.