Credit: santapong R/ShutterstockFederal Court Considers Blurry Lines Between Artist's Consultant and Business Manager
What happens when a business manager gets involved in a dispute with one of the artist’s other advisers? A recent example is the litigation between the longtime business manager for rapper Nelly and a longtime consultant who has provided a range of services to the artist that include marketing and promotion, managing Nelly’s touring business, and seeking endorsement deals.
January 22, 2025 at 11:08 AM
5 minute read
What You Need to Know
- Business managers often provide a range of financial services to artists that go beyond the traditional bookkeeping and tax-preparation functions of an accountant.
- A consultant for Nelly filed a complaint against Nelly's business manager, accusing the latter of defaming the plaintiffs and of tortious interference with contracts.
- Some of the problems between the lawsuit parties involve competition between an artist’s representatives as well as blurry lines arising from the services each could be expected to render.
By Stan Soocher
Business managers often provide a range of financial services to artists that go beyond the traditional bookkeeping and tax-preparation functions of an accountant. A business manager’s services may include, among others: strategizing how and when an artist receives revenues; preparing regular (e.g., monthly) financial flow statements that list income and expenditures; depositing and transferring bank and other funds; tour accounting; investment-planning and tax-planning advice; conducting and/or supervising royalty audits; and advising on estate planning.
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