ID 21110302 Introduction to Artist Development

Coursework 1: Essay - Relationship between the manager and the artist

In the music industry, it is necessary to find a partner, an ally, who can be trusted. In retrospect, looking at the court cases and the problems between the artists and the managers, can say that there has been too many misunderstandings in between. Now the people are realizing the basis of this kind of relationship - trust. The contract wont hold you together if the trust isnt there (Harrison, 2008, p.24). Artists need their manager to be a part-time psychiatrist, accountant, doctor, car mechanic, cook and general bottle washer (MMF, 2001 p.13). Many people are willing to work with a non-formal agreement, but a lot are setting up formal agreements, because there can be advantages with the formal contract. The manager takes many responsibilities when he decides to work with the artist. Manager should help you to get a record and/or publishing deal, live appearances, sponsorship and merchandising deals (Harrison, 2008, p.32). When both parties are satisfied then they will come to terms with the future development. When the manager and the artist agree to work with each other, they decide do to a verbal or a written contract. Many managers work on good-faith basis, but a lot want the security, especially when there has been a lot of investment in the artist on behalf of the manager. Firstly, the non-formal contract. One reason why the manager may operate with non-formal agreement is because the lack of experience on this field. When the unexperienced manager is working with the unknown artist, they are both going to the unknown and there is no need for a formal commitment. Some managers agree to work on a good-faith basis, but the manager should also make sure that he has some kind of control over the artist as a mentor or as a developer. There are managers who are friends or family with the artist and that makes it difficult to formalize the relationship - there is a good base on trust, but asking the commission can be uncomfortable and there is a lack of objectivity. The good thing about the non-formal contract is that both sides have less obligation and both parties must make this relationship organically work. Both save money on legal advice and prioritize trust - the manager can be like an extra member of the band. Problem with the non-formal contract is that the manager may not invest so much time or money in the artist because the lack of security. Problems can also occur when the artist changes his mind about the vision or makes a lot of money from another source. Usually, the manager with nonformal agreement will not get post-term commission and this can be a big reason why the managers may not work with the verbal agreement. When the trust is lost the troubles will arise.

ID 21110302 Introduction to Artist Development

Some end up in court, many more settle before they get that far - even at the doors of the court (Harrison, 2008, p.24). Most of the managers keep proof of their work. That gives the non-formal agreement some legal basis and when the artist leaves the manager there will be consequences. The non-formal contract is mainly based on trust and problems should be solved between the manager and the artist for boths welfare. Secondly, setting up the formal agreement can be a big step for the artist. The management contract should point out the managers and the artists duties, do avoid any misunderstandings. When the manager offers a deal to the artist, it is very important that the artist gets a second or even third opinion. The artist should talk with the other artists or A&R people, who have been around and know about the reputation of the manager. The artist should commit when the manager has a good track record or is a proven manager. The contract will give the manager more security that the money will flow back in. Before making the formal agreement both parties should agree with a trial period, typically 6-12 months. The trial period should be without the contract or with a short agreement. When both parties wish to proceed then they negotiate the terms of the longer contract. In the long-term management contract, there are many aspects what need to be covered. Before making the formal agreement both parties should get separate and qualified legal advice to clarify the terms of the contract and to make sure this is not an unreasonable restraint of trade. The management contract duration is usually fixed for a period of time, most common is 3-5 years. Current trend for the management contracts to run is a number of album cycles. A typical management contract will grant the manager the exclusive right to represent the artist in all areas of the entertainment industry, throughout the world (MMF, 2001, p.27), but it is also common that the artist will get a separate manager for the American market, because the UK-based manager may not have the contacts or knowledge about the market. Problems can occur when the managers have to share the income and as both try to act in the artists best interest, it can be a conflict between the managers about who has the final say. As well as territorial restrictions, the scope of the managers appointment may be limited in other ways (MMF, 2001, p.28). Non-music activities can be a great income for the artist, but often the artist do not want their manager to be a part of that because then the artist must share their income. When the manager has not recouped his investment and the artist is new on the market then it is fare that the manager gets his part of the artists income from the other entertainment industry parts. Best way for both is that the manager employs a sub-agent himself for the artists best interest. The managers responsibility and the working-hours should also be clarified in the contract, because some of the managers are willing to work 24 hours a day, but some prefer to work normal business hours. The artist should

ID 21110302 Introduction to Artist Development

decide what kind of manager will work best for him. Some managers accept that baby-sitting is part of the job. Others however, generally do not take kindly being pestered outside normal business hours (MMF, 2001, p.29). Commission rates have changed over the years, but nowadays it is often 20% of the cross income. The manager should get the earnings from those activities set in the contract. If the manager is a part of the creative-team then the artist should be very careful that the manager is not double-dipping. Double-dipping means that the manager cannot take commission if he has another income streams from the artist. Often the tours will not generate any profit so it will be unfair that the manager takes commission from the gross income. An increasing number of managers accept that commission should be calculated upon net touring income, i.e. only on any profits remaining after the deduction of all expenses (MMF, 2001, p.34). The manager should get post-term commission from his work after the contract ending. If an album is successful, this is generally because of the combined efforts of the artist, the manager and the record company (MMF, 2001, p.54). When the contract ends, the manager should take 10% commission rate for five years and after the first five years it should be 5%. These rules accept when the albums or the songs make any profit. After 10 years, the manager should not take any commission. It is very important that the contract points out how everything works between the parties. Commonly with the non-formal and the formal agreement, the artist maintains the right to walk away from the manager anytime. Formal agreement will give the artist the security that the manager is exclusively there and doing his job properly. The relationship between the manager and the artist can be also very close and personal with the formal contract, because if something goes wrong then both parties have something to lean on. It is more clear with the formal contract what are the managers duties and what are not. Can argue that formal agreement helps to prevent some misunderstandings between the manager and the artist. It can be a successful relationship when both parts know what they can expect. The formal agreement helps to improve the managers work and therefor the artist can expect more investment in the beginning. The relationship between the manager and the artist is quite similar to a friendship, some say even marriage. Respectful and thoughtful behavior can help to create a base of trust, what is inevitable in this kind of relationship. The good management relationship should be effectively working, reliable and successful in the business world. The management contract should be signed if both parties are happy to work with each other. There are many managers who manage to work without the written contract very successfully. The manager is there to advise you, to guide you through

ID 21110302 Introduction to Artist Development

your career in the music business (Harrison, 2008, p.32). The artist and the manager should both meet others expectations and therefor can this personal relationship work. As there are many different people working in the business and many diverse creative people on the other side, often it is all about putting the right people together to create the positive synergy.

Reference list Harrison, A. (2008). Music the business: the essential guide to the law and deals. 4th ed. London: Virgin Publishing. p22-44. MMF, (2001). Guide to professional music management. London: Sanctuary. p17-62.

Bibliography list Frascogna, X. and Hetherington H. (1997) This business of Artist Management. 3rd ed. New York: Billboard Books Goodman. F. (2003). The Mansion On The Hill. New Ed, London. Pimlico. Toop, D. (2001). Ocean of sound. New Ed. London. Serpents Tail.

ID 21110302 Introduction to Artist Development