Management contracts

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  • Management contracts

    I have just received a management contract, and I have a few questions/concerns.


    1) There is a clause that reads "Artist shall pay all documented reasonable and necessary costs incurred by Manager in connection with Manager's duties". He says these are for expenses out of the ordinary, such a fedex charges or dinners, that they would be no more than a few hundred dollars in total, and 'normally' discussed prior. Is this standard, or some kind of red flag? Obviously this would need to be capped and defined, so I'm not being responsible for outrageous charges (ie, photocopying, 'script evaluation fees', etc)


    2) It reads "It is agreed and understood that Manager shall be attached as a co-executive producer on Artist’s television and film projects, subject to good faith negotiations and third party approval." Is it safe to assume that's OK, because 'third party approval' would mean this is not a deal-breaking requirement? I certainly wouldn't want to push away a potential buyer due to an unwanted attachment.


    3) Is it standard that the manager collects all monies/salary payable to client directly, takes his 15 percent first, and then forwards the client the remainder? Or should it be the other way around?


    4) Is it unreasonable for me to insist that a pre-existing project (which is currently in pre-production) be excluded?


    Any help would be greatly appreciated.
    Last edited by bobloblaw; 08-10-2011, 09:32 AM. Reason: miswording

  • #2
    Re: Management contracts

    Originally posted by bobloblaw View Post
    He says these are for expenses out of the ordinary, such a fedex charges or dinners, that they would be no more than a few hundred dollars in total, and 'normally' discussed prior. Is this standard, or some kind of red flag?
    Total red flag. How, in any universe, would a fedex charge be "out of the ordinary" for a lit manager? Or a dinner, for that matter? First of all, they (and I am assuming that US tax law is similar to Canadian) are tax deductible work related expenses. It's just the cost of doing business.

    I just bought a house. I didn't have to reimburse my real estate agent for his gas... or for anything. He was making money from *me* and the potential purchase of the house. Same thing should apply.

    Please, someone correct me if I am totally misguided on this, but it seems MIGHTY dodgy to me.

    Comment


    • #3
      Re: Management contracts

      Hire an entertainment attorney to look over this.

      The worst thing in the world is going to be finding out that some dipshit on the internet gave you bad legal advice and now you're on the hook for thousands of dollars because of a BS contract you signed.

      Comment


      • #4
        Re: Management contracts

        Other red flags, "contract" "15 percent" by and large, the legit manager/client relationships are organic, not contract based. You guys meet, start working together on projects, and he's your manager.

        Even if a project is in preproduction, and you haven't gotten paid yet, your manager is your manager and makes commission on all income you receive from writing.

        The producer attachment thing is strange too. Normally managers earn the right to be onboard as a producer or it is discussed beforehand on a project by project basis.

        Comment


        • #5
          Re: Management contracts

          Originally posted by Todd Karate View Post
          some dipshit on the internet gave you bad legal advice
          I resemble that remark.

          Comment


          • #6
            Re: Management contracts

            What service is this person providing that entitles him/her to an extra 5%? I can't believe some firms get away with this. Highway robbery.

            Most Management relationships are handshake deals. If someone asks you to sign a contract it's red flag #1. Saying they charge 15% plus potentially hundreds of dollars in incidentals is red flag #2.

            But like Todd said get an ent. attorney. He/she will no much better than me.

            Comment


            • #7
              Re: Management contracts

              Originally posted by bobloblaw View Post
              I have just received a management contract, and I have a few questions/concerns.


              1) There is a clause that reads "Artist shall pay all documented reasonable and necessary costs incurred by Manager in connection with Manager's duties". He says these are for expenses out of the ordinary, such a fedex charges or dinners, that they would be no more than a few hundred dollars in total, and 'normally' discussed prior. Is this standard, or some kind of red flag? Obviously this would need to be capped and defined, so I'm not being responsible for outrageous charges (ie, photocopying, 'script evaluation fees', etc)


              2) It reads "It is agreed and understood that Manager shall be attached as a co-executive producer on Artist's television and film projects, subject to good faith negotiations and third party approval." Is it safe to assume that's OK, because 'third party approval' would mean this is not a deal-breaking requirement? I certainly wouldn't want to push away a potential buyer due to an unwanted attachment.


              3) Is it standard that the manager collects all monies/salary payable to client directly, takes his 15 percent first, and then forwards the client the remainder? Or should it be the other way around?


              4) Is it unreasonable for me to insist that a pre-existing project (which is currently in pre-production) be excluded?


              Any help would be greatly appreciated.
              This is garbage. Don't do it.

              Comment


              • #8
                Re: Management contracts

                Originally posted by Todd Karate View Post
                Hire an entertainment attorney to look over this.

                The worst thing in the world is going to be finding out that some dipshit on the internet gave you bad legal advice and now you're on the hook for thousands of dollars because of a BS contract you signed.
                He doesn't need a lawyer for this one--it's so egregious that he should not waste his time giving it a moment's thought.

                Comment


                • #9
                  Re: Management contracts

                  Exactly! That was my feeling, and that's why I'm asking here first, before wasting money on an attorney. Thanks everyone for the feedback.

                  While it was the 'expenses' thing that was the major red flag, I wasn't aware that a contract was a problem as well. I had a previous manager who only asked me to sign a simple one-page agreement. Is that the most appropriate?

                  Comment


                  • #10
                    Re: Management contracts

                    Originally posted by bobloblaw View Post
                    I had a previous manager who only asked me to sign a simple one-page agreement. Is that the most appropriate?
                    No. More often than not it's a handshake or naturally occurring relationship. You send him a script, he likes it gives notes, sends it back, you guys talk about it, discuss other projects etc. and before you know it, he's your manager.

                    Comment


                    • #11
                      Re: Management contracts

                      I know exactly who's contract this is.

                      Run away, don't walk. It absolutely sucks to be that close to representation and have to turn it down, but it would suck even more 18 months from now when you're hamstrung by a contract that's hurting your career rather than helping it.

                      Comment


                      • #12
                        Re: Management contracts

                        I agree with the chorus recommending you don't sign an agreement like this.

                        I finally figured out that one of the greatest signs of wisdom is knowing what opportunities to let pass you by. This would be one of them.
                        Seven years dungeon --- no trials!

                        Comment


                        • #13
                          Re: Management contracts

                          Originally posted by bobloblaw View Post
                          I had a previous manager who only asked me to sign a simple one-page agreement. Is that the most appropriate?
                          I don't mean this to be flip but it depends what's on that simple single page... in contracts a lot of big time damage can be done in a simple little one pager...

                          ... and if I could maybe take another second to point out the obvious - people who present another party with a contract have generally drafted it with their own interests in mind. That doesn't mean don't ever sign a contract - many are in fact reasonable enough to both sides - but it's best to give them a good long look with this in mind.
                          Seven years dungeon --- no trials!

                          Comment


                          • #14
                            Re: Management contracts

                            +1 for not signing with this guy. While the standard advice of "never sign anything without consulting an attorney" is certainly always a good practice... I also think it's pretty clear this is a bad deal since it breaks Rule #1 of legit representation - not charging clients for business expenses.

                            I'd save myself the money on a lawyer and just tell this guy thanks but no thanks.

                            Comment


                            • #15
                              Re: Management contracts

                              Thanks again for all the advice! But just to clarify one point made by Hilario, about managers in general: if a client goes with one while having an existing project already in the works, is it really unfair for the client to insist that particular project not be subject to their future commission payments (since the manager had NOTHING to do with it)? Basically, what's to stop a manager from taking a client on simply to make a few bucks of said project, while having zero intention of doing anything else?

                              Obviously, another potential trap of having a contract.

                              Comment

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