Music management contracts: what every artist should check before signing

A management contract is one of the most important agreements in a music career. Your manager controls your business decisions, negotiates your deals, and takes a percentage of everything you earn. Getting this contract right matters more than almost any other deal you will sign.

Commission rates

Standard management commission is 15-20% of gross income. Some managers take 25% for new artists. Check whether the commission is on gross income (before expenses) or net income (after expenses). The difference can be significant — 20% of gross on a 100,000 euro tour that costs 60,000 to produce means you pay 20,000 in commission and keep 20,000. At 20% of net you would pay 8,000 and keep 32,000.

The sunset clause

A sunset clause determines how long the manager continues to earn commission after the contract ends. Without one, a manager who helped you get a record deal could earn commission on that deal's income for decades — even if you parted ways years ago. Typical sunset clauses reduce the commission gradually: full rate for one year, 75% for the second year, 50% for the third, then zero.

Key person provisions

If you signed with a management company because of a specific person, include a key person clause. This gives you the right to terminate if that person leaves the company, becomes incapacitated, or stops actively managing you.

Scope of authority

What can the manager do without your approval? Some contracts give managers blanket authority to sign deals on your behalf. Others require your written consent for commitments above a certain value. Always require approval for any deal that involves assigning rights, taking on debt, or committing to exclusivity.

Term and termination

Management contracts typically run for 3-5 years with options to extend. Check whether the options are mutual or one-sided. Include performance benchmarks — if the manager fails to achieve minimum income targets, you should have the right to terminate early.