what is a sunset clause in artist/attorney contract

Management agreements often have something we attorneys in the business call “sunset clauses,” which are provisions dictating that the artist must continue to pay a commission to the manager after the term of the agreement has ended.

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Should an artist have a sunset clause in their contract?

Dec 23, 2021 · A sunset clause provides for a set period of time, after the termination or expiration of a contract, during which one party continues to receive certain benefits (such as a share of revenue) under the contract. Often, sunset clauses are found in agent agreements in the film and television industry or manager agreement in the music world; however, sunset clauses …

What is a sunset clause in a management agreement?

Jun 27, 2018 · Typically, a sunset clause lasts one to five years, and the sunset commission drops in each year. For example, a management contract having an in-term commission at twenty percent may have a sunset clause that pays fifteen percent in the first post-term year, ten percent in the second year, five percent in the third year, and then stops.

What are the advantages and disadvantages of a sunset clause?

Jan 21, 2013 · As most artists initially are not in a position to negotiate all the terms of an agreement or insist on a proper sunset clause, they often sign agreements that give rights to the manager, agent, attorney, beyond their due. If this is the case, you should ask an attorney to review the agreement and advise you as to your best course of action.

What is a sunset date in a contract?

Feb 25, 2015 · A n example of a sunset provision is included in the comments for paragraph 13 in the pro-management agreement, and is also contained in …

What is a sunset clause in a contract?

A sunset clause is a condition included in some contracts of sale of property, to protect the buyer and seller. It lets either party end the contract if certain requirements are not met. Think of it as a ticket to walk away if things don't go to plan.Sep 24, 2021

What is a sunset clause in an artist's managers contract?

A sunset clause gives the manager the right to collect commission from any other contracts they secured for the artist during the initial contract term. ... The manager will have a sunset clause to ensure they get paid from contracts that are longer than your agreement with them.Jan 21, 2020

How long does a sunset clause last?

Generally, however, the average sunset clause period is around 18 months. When buying an established property, the condition is usually set to allow the buyer to sell their own home. Generally, the sunset clause would allow the buyer between 60 and 90 days to settle.Dec 23, 2020

What should an artist management contract include?

There may be a verbal or written agreement between the artist and manager....7 Essential Clauses in an Artist Management DealExclusivity. ... Time. ... Manager's Management Services. ... Decision-Making. ... Commission. ... Expenses. ... Cash Flow.Aug 16, 2017

How do I terminate a music management contract?

In writing, preferably with the help of an attorney, your friend can terminate the agreement with a clear explanation of how the manager failed to live up to the expectations of their arrangement. Realistically, the manager's only recourse here is to sue for damages, for breach of contract, or for lost revenue.

What do artist managers pay for?

ARTIST MANAGEMENT GETS PAID WHEN THE ARTIST GETS PAID. This means, the artist manager doesn't earn a commission on royalties until the artist has recouped. But it ALSO means, the artist manager gets a commission on any advances paid by the label (or publisher, or agent, or anyone else).

What is an example of a sunset clause?

A sunset clause or sunset provision is when a statute or contract provides for certain obligations to stop producing legal effects after a specified date. For example: ... A software license agreement may provide for a sunset clause where a particular software version will no longer be supported after a specified date.Oct 1, 2020

How do you get out of a sunset clause?

They need to specify why completion of the project cannot be fulfilled as per the sunset clause. If you do not agree with the developer's reasons the developer must obtain an order from the Supreme Court to rescind the contract. This precaution is designed to protect you when buying an off-the-plan property.Feb 1, 2021

Is sunset clause a condition?

A sunset clause is a condition included in a contract that provides that if a specified event has not occurred by a specific date, then either one or both parties can cancel the contract on giving written notice to the other.

How long is a artist manager contract?

three yearsHow long is a normal artist manager contract? The standard length of the management contract is three years but it can vary from 2 to 5 years on a case by case basis. Most contracts also include a "Sunset" clause.Feb 18, 2019

Can an artist manager have power of attorney?

POWER OF ATTORNEY. Whether the manager merely offers advice to the artist, or makes decisions on his or behalf, depends on the manager's authority. Management contracts sometimes include a Power of Attorney that gives the manager a variety of powers, including signing contracts on behalf of the artist.

How do you make an artist contract?

To help you get started, take a look at a few basic components to include in your contract so you can better protect your art business.Client Info. ... Project Info and Terms. ... Project Timeline. ... Costs and Payment Terms. ... Itemization. ... Artist's Rights. ... Cancellation Terms. ... Acceptance of Agreement.

What is sunset clause?

A sunset clause in a contract provides for a date past which the same clause, other clauses or the entire contract will terminate. The termination of the contract can be linked to a specific date or to an event. The parties may agree to sunset certain clauses by December 31, 20XX.

What is sunset provision?

Definition. A sunset provision, or sunset law, is a clause in a statute, regulation, or similar piece of legislation that expires automatically. What is notable with this definition is that a statute or contractual clause automatically expires with the passing of time.

How long does a sunset clause last?

Typically, a sunset clause lasts one to five years, and the sunset commission drops in each year. For example, a management contract having an in-term commission at twenty percent may have a sunset clause that pays fifteen percent in the first post-term year, ten percent in the second year, five percent in the third year, and then stops.

What is the deal point in an artist management contract?

This article will address some of the key terms or “deal points” in artist personal management contracts. Whether you are the artist or the manager, your ability to negotiate these terms in your favor will depend (as it always does) on your relative bargaining power. If you are a superstar artist contemplating a change in managers you will be able to get almost anything you want, and at that level it is not uncommon for the artist and manager to have no contract at all, but simply a verbal agreement that the manager gets a 10% commission and the artist can terminate the relationship at any time. But for the vast majority of artists and managers, we deal in the world of contracts and negotiation leverage. If you are an up-and-coming artist that has caught the attention of an “a-list” manager, you are not likely to be able to negotiate any major changes in the management contract. The manager knows their status and feels you should consider yourself lucky to work with them, and you should. Or not - here is my caveat on relative differences in career level between artists and managers: if you are a little fish in a big managers pond you are more likely to get overlooked in favor of their more high-profile clients and less likely to get the hands-on attention you need; conversely, if you have a mid-level or “newbie” manager, they may have the ability to give you all kinds of time and attention, but will lack the experience, connections and clout of an established, respected and well-known manager. Sometimes it is best for an artist to find a manager that is near the same level, career-wise, and hopefully the careers of both rise together. Also, understand that no matter how good your entertainment attorney is, there is only so much they can do if your relative bargaining power is low in relation to the other party.

What is a post term commission?

These are commissions paid to the manager after they are no longer managing the artist. The key considerations are the length of the sunset period, the sunset commission rate, and the revenues to which it applies.

What is scope of services?

The scope of the services is usually broadly defined to encompass anything the artist does in the “entertainment industry,” throughout the world. However, the artist should consider whether the manager is equipped to manage all aspects of the artists career.

How much commission does a manager get?

Commissions: A manager’s commission is typically fifteen to twenty percent. It is extremely rare (and usually ill-advised) for a manager’s commission to exceed twenty percent.

Daniel Nathan Ballard

Under California law a personal services contract [which yours quite likely is] can last for no longer than seven years. See Labor Code 2855. You should speak with an entertainment attorney licensed to practice in the state whose law controls your contract...

Philip Leon Marcus

The problem for artists starting out is they do not have the money to simply pay a fee for the services of an attorney to review or draft various agreements, such as with managers, agents and venues or record companies. So, instead, the attorney agrees to work for no money up front but a portion of artist’s earnings...

J Scott Scarbrough

First, you refer to a sunset clause in a manager/artist agreement and ask if there is the same type of option for lawyer/artist agreements. Yes. As Mr. Parron stated, both agreements may contain sunset clauses, with the same results.

Ivan Jose Parron

The actual written agreement between the artist and their attorney will define the terms including the termination provisions. All terms are negotiated between the parties.

What is a sunset clause?

The compromise is called a “sunset clause.”. Under this clause, the Manager’s still receives income from contracts negotiated during the term of the agreement, but that amount of income declines over time and eventually ends within a reasonable time. A n example of a sunset provision is included in the comments for paragraph 13 in ...

What does a manager do for an artist?

Traditionally, a manager provided advice on all aspects on the artist’s professional life, used her relationships to generate opportunities, negotiated deals when the opportunity to do so arose, and helped the artist select other members of the “team,” such as accountants, lawyers, booking agents, and publicists.

Who is Steve Gordon?

The following comes Steve Gordon, regarded as one of the top attorneys in the music industry . Last week, he outlined 11 contracts that every artist, songwriter and producer should know. So here’s the first one: management contracts.

What is a management agreement?

A written agreement between the artist and manager should outline the details of the relationship to ensure that the artist and manager are on the same page, which helps to avoid conflict in the future. A management agreement doesn’t guarantee there won’t be conflict, but it does make the parties talk about the tough questions early on.

How to pay an artist to a manager?

Regarding compensation, one way for the artist to pay the manager is to the provide the manager a commission equal to a certain percentage of funds earned from certain revenue sources. The percentage may be a set number regardless, or might increase based on the funds the artist earns.

What does a manager do?

The manager’s specific role will depend on the manager and band, but generally the manager advises and directs the artist in connection with all matters relating to the artist’s professional career in the entertainment industry. That’s pretty broad.

What does Byron do?

Byron works with musicians and music companies to assist with record label agreements, publishing contracts, distribution deals, producer agreements, band agreements, etc. This blog is for general informational purposes only and is not to be considered as legal advice.

Is an artist the only manager?

The manager is more likely than not, the artist’s only manager, but the artist may not be the manager’s only artist. If the artist isn’t the manager’s only client, it may be helpful for the artist to get a minimum commitment of time that the manager commits to provide.