Management deals “Earnings after the term”
One of the most important points you have to negotiate is what your manager gets paid after the end of the management deal. Even though the term may end after a few years, virtually every management contact says the manager gets paid on earnings after the term if those earnings are generated under “Contracts entered into or substantially negotiated during the term.”
In layman terms this means.
- As to records made during the term of the management deal, the manager gets a commission from sales of these records occurring after the end of the management deal.
- The manager is paid on records made after the term of your management deal, if the records are recorded under a contract signed during the term.
All of this could mean…and trust it happens… your current manager who you may fire lol could still be getting paid five, ten or more years after he or she finished their services as your manager. For example, let say you two months before the end of the management deal you sign a five album deal. Under this sweet clause, the manager gets paid forever on sales of these five albums, most of which will be recorded after you’ve parted ways.
To be honest the main things to worry about are records and publishing. Unless you’re in a television series or some other non-musical commitment that could run for several years, records and publishing are the only areas where you’re likely to have significant earnings from activities after the term under agreement made during the term. However, if a manager is involved in setting up a tour, it is not unreasonable for him or her to be paid something for the tour.
Simply put, if you’re a manager make sure you hold onto this clause If you’re an artist, good luck lol!
Come back to the site on Monday where we will discuss ways to construct a better deal for the artists.