Artist management agreements series; (part 6) Business administration and other responsibilities

As indicated previously, there may be (as in the USA) a distinction between the personal manager and the business manager. In the USA, a ‘business manager’ is a separate person who is responsible only for handling money. In South Africa and the UK, the two roles are usually combined, but where not, the latter person is called a financial manager. Presuming these two roles are indeed combined, it is important for the agreement to define exactly what the manager’s power, responsibilities/ duties and rights will be in respect to his representation of the artist.

It is virtually impossible to accurately describe everything that every talent manager will have to do in his career, and let’s face facts – some of the things managers do, I’m not sure we would want to talk about (does the word “payola” ring a bell?) But in classic terms, the South African talent manager will, generally speaking, see to the following functions at least:

1. Determining the artist’s business status, setting strategy and negotiating with any other business entity or person wishing to interact or contract with the artist;

2. Accounting for the artist’s income and expenses and balancing the artist’s budget;

3. Formulating and marketing the artist’s image and products;

4. Mapping out a career plan for the artist and guiding the artist in achieving career goals;

5. Negotiating and securing a recording contract and a publishing agreement, and then maintaining those business relationships;

6. Monitoring and managing the royalty income from recordings, performances and mechanical rights, including dealing with the royalty collection societies;

7. Hiring producers, session musicians and other personnel for record production, performance and publishing;

8. Co-ordinating tours, live performances and appearances;

9. Establishing commercial relationships (locally and worldwide);

10. Pushing for marketing and public relations exposure and airplay;

11. Handling merchandising and other sales matters;

12. Managing the finances, bank account and taxation issues;

13. Taking legal action where necessary

Business, however, is not the only realm of the artist’s career that a good manager will involve himself in. A manager may also be involved in the creative aspects of the process: this may include:

1. Making suggestions for improvements in recording and live performance;

2. Helping with instrumentals (if the manager has musical experience);

3. Overseeing all creative aspects of the recording and performance processes, including style and image;

Traditionally, in the US at least, there are some aspects of the artist’s career that the manager tends not to involve himself with. While this is the case in America, many South African managers tend to be “Jacks of all trades.” And often do take on functions that their American counterparts will not. These include:

1. Actively seeking gigs and employment for the artist. (In America, this is technically the agent’s job, and the manager would therefore appoint the agent to do this. In South Africa, the size of the market makes this distinction less rigid);

2. Actively producing the artist’s records. This is the function of the producer or studio appointed by the manager;

3. Promoting or facilitating copies of the artist’s repertoire. This is the job of the publisher appointed by the manager

The power of attorney

Please note that none of the above observations are cast in stone, and every manager will take a uniquely different combination of roles, depending on his abilities and experience.

Very importantly, you will see that most management agreements contain a “general power of attorney” (usually coupled with a “declaration and agreement of interest” which means that there is no actionable conflict of interest by the manager). A power of attorney is a legal mandate (or agency agreement) that the artist grants to the manager, to enter into contracts in general, on his behalf. This means that the manager gets full authority, within the scope of the mandate, to contract for the artist, as if the artist were personally entering into the contract, himself. Giving anyone a general power of attorney is a very scary thing, and it is very hard to absolve yourself of prejudicial contracts entered into for you by someone who has your power of attorney, so beware. I recommend rather only entering into a specific power of attorney that lists very clearly what exact functions the manager is mandated by the artist to carry out (as set out in previous articles under “manager’s responsibilities.” This is very important – remember, once you grant someone a power of attorney, he may enter into contracts on your behalf (within the mandate given) and you are absolutely, irrevocably bound to those contracts as if you were in the room and you entered into those contracts yourself.