At some point during his career, an entertainment attorney may be asked to negotiate a management agreement on behalf of the manager or the artist, such as an actor or musical performer. These agreements are important because they not only cover how significant sums of revenue will be shared, but also establish the basis of what often turns out to be a very personal relationship.

There are different types of managers. Some are business managers who handle the financial and commercial affairs of the client. Others are personal managers who provide advice and guidance in creative matters, such as helping a rock band with its live act or reviewing projects under consideration by an actress. Some managers do both. This article will focus primarily on the contractual relationship between a personal manager and an artist.

As with most negotiations, compromises depend on the relative bargaining power of the parties. When the manager becomes involved with an artist who is at the beginning of her career, the manager is keenly aware that relatively more managerial time and effort will be required per dollar earned. This makes the manager less amenable to accepting a deal that deviates from the form agreement it customarily proffers. If the artist already has achieved a level of success that generates substantial revenues, then the leverage may shift in her direction.

Key Agreement Terms

The key provisions of the agreement are the particular services to be provided by the manager, including the industry sectors that both management and artist agree will be the focus; the territory; exclusivity; the revenues on which the manager's compensation will be calculated; the duration of the manager's services; and the duration of the manager's compensation, which usually lasts beyond the term.