WHAT YOU SHOULD LOOK OUT FOR IN YOUR MANAGEMENT CONTRACT.

WHAT YOU SHOULD LOOK OUT FOR IN YOUR MANAGEMENT CONTRACT.

 

After a tedious (or not) search, an artiste finally gets a manager who is expected to be trustworthy, efficient and diligent about the entertainment business of the artiste. However, there are grey areas the artiste needs to “sort out” in the contract before its execution.

 

Activities Covered.

The artiste needs to decide on the kind of activities the management contract shall cover. Will it cover everything the artiste does in the entertainment business or it’ll be restricted to activities in only music business.

An artiste might start out as a songwriter/performer and later transition into acting/modelling. The manager might just be very capable of handling all entertainment related activities or he may just be an expert in music business, with the know-how of the film and modeling industry. It would be calamitous to hand over all entertainment related business to the manager who is only skilled in music business.  The manager might have reservations about this arrangement as he may think that it will be his expertise and skill in the music business that will open doors in other entertainment industries, and thus, should get a share in whatever income is received in those industries.

The issue of “activities covered” in the management contract would depend on the bargaining power of the parties and a fair compromise should be reached by both parties to prevent future discrepancies and fallouts.

 

Territory

The artiste needs to decide what countries/region/continent the contract will cover i.e the territory of the deal. The manager (obviously) would want to manage the artiste for the world. This might not necessarily be to get as much commission as possible (this is a major factor though) but to control the plan and all activities, which would not be easily done if the territory is restricted to a region or continent.

In deciding this, the artiste needs to determine if the manager is well abreast of the ins and outs of the music business in all or major parts of the world before consenting to a worldwide management.

 

Exclusivity

Once a decision has been reached on the kind of activities the management contract shall cover and the territory it shall be effective, the parties would need to decide on the nature of the del. In most cases, the manager would want to be the sole and exclusive manager for all activities covered to control and oversee all projects. This is quite and practical and reasonable, as other managers (in a non-exclusive deal) might have clashing ideas and plans, which would only derail the advancement of the artiste’s business.

Term and Termination

The length of the contract is a key provision in a management agreement, the parties would need to decide on the initial term and the possibility of subsequent renewal terms. In fairness, the contract should be open-ended and carry on until a party decides not to continue. The parties may decide for a fixed period after which there shall be a renegotiation of the terms of the agreement.

In most cases, there is usually a fixed period, which can be extended unless a party decides not to exercise that option. For an artiste, the right to exercise the extension option should be linked to the manager fulfilling certain obligations or achieving something for the artiste.

Termination of the contract, just like the term is a key provision in a management agreement. It should be expressly stated, what actions or inactions would constitute a breach of the agreement, how can the breach be remedied, and the procedure(s) for termination.

 

Management Fee, Revenue Sharing, and Commissions

The contract needs to expressly state the management fee of the manager and the revenue sharing ratio of both parties. It also must list the kinds of incomes that can or will be shared by the artiste and manager. The form of sharing, be it gross or net. There is no standard form of revenue sharing or payment for services, the parties shall have to reach a middle ground on the form of payment. The status of the artiste pays a big part in this also, will there be a monthly salary structure? Or, percentage commissions off all revenues?

The artiste needs to also pay extra scrutiny all forms of commissions to be deducted by the manager on monies received for the artiste.

 

Time Spent.

The contract must state the minimum amount of time the manager must expend on the artiste. The absence of this could lead to disaster. It is a major cause of friction between manager and artiste worldwide.

What happens if the manager manages other acts or is part of a management company that manages a number of people? How can the artiste make sure the manager is there when the need arises.

The artiste needs to ensure that the agreement between both parties says the manager has to spend a reasonable amount of time on a regular basis managing the artiste. The artiste could go further and specify what “reasonable amount of time” shall mean in this agreement, be it 3, 4 weeks or 2 months.

 

Dispute Resolution

The contract must state the agreed mode of settling disputes when it arises. The parties could decide to meet over and resolve any dispute, but what if it fails? The other options available include Arbitration, Mediation, Negotiation and Litigation.

 

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Fawehinmi Oyinkansola Esq.

Fawehinmi Oyinkansola aka The FozaDoza is synonymous to energy and passion. With keen interest in the entertainment and legal industrIes, Foza has been able to create a niche in both industries for herself. She obtained her LL.B and a Diploma in Security studies from the prestigious Babcock University Ilisan Remo, Ogun State. She was called to the Nigerian Bar in 2014.

She started out in the entertainment industry as Business manager for a school group called Pro Inc which became the favourite go to hip hop group in school. This spurred her passion for talent management and she has worked as a road manager at Monarc Talent Agency (an affiliate of Aristokrat Records), G- WorldWide Entertainment as business manager and currently is the General Manager at a 360 management company (Incubation Factory).

Her clientele spans across the music, film and telecommunications industries where she has effectively brokered license, distribution and endorsement deals. She has an impressive personal and professional relationships with all her clients which ensures she creates a comfortable working relationship. She leads the music and film divisions of the firm.

Foza is a vocal and passionate change agent, a non conformist and an adventurous risk taker. These traits have made her a known face as well as speaker on the most prestigious entertainment conferences stage. She strongly believes in integrity and is driven by family and legacy building. She has received numerous awards in relations to leadership and social activities.

Foza enjoys her live band music sessions, and a gathering of talented artiste anytime. She is the life of every party and has an excellent social skill.

Olumide Mustapha Esq.

Olumide Mustapha is a technology and entertainment attorney both in Nigeria and the UK. As an undergraduate he was a student of Sociology and economics at the University of Reading in the UK before embarking on his legal career by first qualifying – with Distinction – as a Solicitor from the College of Law UK, (and then practising for a period), with a particular focus on International Commercial Law,
Tax and Intellectual Property. Having been also called to the Nigerian Bar with Honours Olumide has since continued to focus on the areas of media, entertainment and technology law.

Olumide, in applying his vast legal and business knowledge in these sectors, has successfully initiated, negotiated and pushed through numerous transactions to the commercial benefit of clients. He has advised two of the “Big Three” global music labels on their planned entry into, and commercial strategy for, the Nigerian market; negotiated significant licensing agreements with a number of major Nollywood production houses and advertising agencies on behalf of a major music publishing company; consulted for one of the country’s biggest copyright collective management organisations; and worked with numerous technology start-ups in securing funding and scaling their businesses. Olumide is also the Chair of the Music Publishers Association of Nigeria.

On the back of such experience Olumide has also built over time a formidable network of contacts that allows his clients to enjoy a full suite of legal and business advisory services that include the ability to source funds, conveniently acquire/produce/licence valuable content, in addition to ensuring specialised due
diligence is carried out on all transactions and that good governance is practiced at all times; all with a keen understanding of the relevant market dynamics and client’s specific commercial objectives. Moreover, he has significant experience in litigation and has a lot of expertise in utilising the Nigerian court system to ensure client’s rights are protected and enforced at all times.

Never being one to shy away from sharing his professional thoughts, opinions, and analyses, Olumide is regularly featured in various media to provide his views and analysis on the legal and business issues surrounding the Nigerian entertainment and technology industries. Such media outlets include Channels TV, TVC, NigeriaInfo FM, Business Day, The Guardian, Techpoint Africa, and the African
Venture Capital Newsletter amongst others.

Olumide’s aim is to use his years of experience and expertise in international commercial and intellectual property law related matters, and strong network of contacts – both foreign and domestic – to contribute to the legal development of Nigerian enterprise structures and governance, and general business practice; thereby pushing the country closer towards fulfilling its socio-economic potential.

Iredumare Ojengbede Opeyemi

A graduate of Obafemi Awolowo University Nigeria (LLB) and University of Strathclyde, Glasgow (LLM) is a legal practitioner in Nigeria with over six years of experience in intellectual property, telecommunication and cyberspace Law.

He is a cyberspace, media and entertainment researcher with keen interest in Music, Film and Television, digital rights and personal data protection, intellectual property protection, creative financing, Media Advocacy and information literacy on the digital space. A cultured, informed and disciplined legal practitioner, who prides himself as a strategic solution executor, an expert in identifying root challenges and creating specific market/territory based solutions to cyberspace and digital challenges. He is always constantly seeking growth opportunities and self-improvement initiatives as a team player working in and for goal-oriented organizations.

Iredumare has spent the last two years facilitating multimillion naira deals for his clients across catalog licensing, catalog acquisition, intellectual property estate valuation as well as developing music business models for various value chain members in the African creative industry. Iredumare enjoys reading and having solution driven conversations with like minds.