MUSIC
LAW UPDATE
This is the first in a series of hopefully informative articles on various aspects of the music industry, primarily for artists, songwriters and others in the creative area, but also for anyone else interested in how the industry works.
A number of years ago, I wrote an article under this title for a music-industry magazine. Looking back, I suppose I must have thought it was a subject I knew well enough to write about. Since then, I have formed my own artist management company, Bond Management, which operates alongside my legal practice. I have now come to realise how little I really did know back then! High time, then, it was updated…
I.
Can You Manage?Should we have a manager? Where can we find one? How will we know if he's any good? What will our manager do for us? Can't we manage ourselves? These questions and many similar ones beset all artists as they set out on the road to fame and fortune.
Like most other things, there are no hard and fast rules. Some artists have carved out successful careers for themselves without ever having had a manager. There are, however, many more who have achieved considerable success with the aid of astute management, and at the opposite end of the spectrum there are those who have had unfortunate experiences. In between lies a conscientious body of managers, working beyond the call of duty, often personally out of pocket, constantly striving to improve the lot of their artists.
Why appoint a manager?
Many artists will start off managing themselves, perhaps not even realising that what they are doing is "management", but circulating demos to record companies and publishers, organising gigs and dealing with agents are all management functions. After a time, however, and as their careers progress, they often find two things: firstly, that the task of management has become too arduous and time-consuming and threatens to divert them from the priority of being successful musicians, and secondly that they need some independent muscle in their dealings with labels and other employers of talent. "We need a manager!" is the inevitable rallying cry.
However, as I have indicated, this is not an exact science. Each artist or band should consider their own requirements very carefully. Appointing the wrong management is definitely worse than having none at all, and, in my opinion, of all the contracts you might enter into during your career, the management one has the potential of causing you the greatest grief if you get it wrong. Unlike your dealings with record company or publisher, where A&R men and other staff may come and go on the great industry merry-go-round, management is a much more personal relationship, which in a sense can be likened to a type of marriage. It also demands mutual trust and respect, and if that breaks down the consequences can be as messy as the most acrimonious divorce. Be careful!
What do managers do?
The Manager will look after all the business aspects of an artist's career, leaving the artist free to concentrate on what he does best: producing the music. But in reality, that's only a small part of the picture. In effect, the Manager is the day-to-day link between the artist and the record company, publisher, and other parties involved in the artist's career, including lawyers and accountants. Without disparaging the efforts of record companies and publishers, very often the job description seems to consist more of managing them than managing your artist, to ensure that the artist's interests and wishes are being properly represented in each and every area. This requires an involvement in virtually every aspect of what is going on, from organising musicians and technical personnel for recording sessions, to supervising the licensing of the artist's music and recordings for films and advertisements, to having a say in the choice of photographers, producers, video directors, designers, booking agents, stylists and so on, to chasing third parties for money and ensuring that the artist is paid properly, in full, and on time.
Normally, one of the Manager's most important tasks will be to secure recording and publishing deals for the artist. In fact, the timing of management interest in an artist is often significant. An unmanaged artist newly signed to a major label deal will invariably attract the attention of a whole cluster of interested representatives, on the basis that the hard work, or at the very least the groundwork, has already been done, and they can jump on to the bandwagon. It is in this situation that artists should be most vigilant. Ask yourself: is this interest in you being shown because the Manager really believes in you and in your music, or is he simply an opportunist waiting to cash in on someone else's hard work? If you already have record and publishing deals, are you sure you need a manager at this stage? Your record company and publisher will probably carry out certain unofficial management-type duties anyway (partly in their own interests!) to keep the wheels turning smoothly. Your lawyer and accountant should each also be able to provide sound advice and assistance, without seeking to take percentages of your income. So be careful!
What will our Manager charge?
The famous quote by one well-known manager that what he disliked most about his artists was that they took eighty per cent of his income, still holds good. The normal starting rate of commission these days is twenty per cent of the artist's earnings. (Be careful when you get to the contract stage that you know what this percentage is calculated on; there are all sorts of different devices, and it can (and should) vary between "gross" and "net" income depending on the source of income.) When you hit the dizziest heights, there may be room for this to be renegotiated in your favour, but don't take it for granted.
Our record company boss (or A&R man) wants to manage us?
There are well-known cases where this works and has proved successful for all concerned, but the general advice has to be: don't do it. There will always be a potential conflict of interests, in that the Manager is bound to find himself pulled in opposite directions by conflicting loyalties. If in doubt, or if you consider that in your particular circumstances there are good reasons for proceeding in this way, take expert advice.
And never sign anything (except, possibly, an autograph) without independent legal advice.
Above all, be careful!
© Leonard Lowy, 2000
The information in these Articles has been carefully compiled and whilst all reasonable efforts have been made to ensure their accuracy no guarantee is expressed or implied as to their validity. The author cannot accept liability for any loss or damage of any kind which may arise or result from any errors or omissions. These Articles are general in nature only, may not be applicable in all circumstances and are not intended to be a substitute for taking independent legal advice on any proposed transaction or arrangement.