From the course: Music Law: Recording, Management, Rights, and Performance Contracts
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Post-term commissions
From the course: Music Law: Recording, Management, Rights, and Performance Contracts
Post-term commissions
- Artists are often surprised to learn that a manager can get commission payments after they have stopped working for the artist, known as post-term commissions or sunset payments. Managers believe they are entitled to these payments because they negotiated the original deals that continue to earn income. Some managers believe these payments should go on forever. Something an artist should never agree to. Many managers insist on a post-term commission on all albums recorded as a result of a record deal that was negotiated by the manager no matter when the albums are created. In other words, if the manager negotiated a three-album deal, the manager will get a cut of the income from all three albums even if the management agreement ended after only one album was recorded and the other two albums were recorded a year or more after the manager left. As you can see, these types of deals can be quite expensive for an artist. If an artist is paying a 20% post-term commission on an album to…
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