Sunday, August 30, 2015

A "Sunset Clause" in a Management Agreement essentially means that the manager still gets paid a commission after the deal ends on money the artist is still making off deals the artist signed during the term of the Management Agreement, but at a reduced rate from the what the commission percentage was during the term of the Management Agreement. For example, if an artist signs a 3 album deal during the term of the Management Agreement and the 3rd album comes out after the Management Agreement Term is over, the manager still gets paid a commission for the money the artist makes from that release, but at a reduced commission rate for a certain number of years post-term (on average 3-5 years), and the rate goes down to eventually 0% (e.g., 1st year post-term = 15%, 2nd year post-term = 10%, 3rd year post-term = 5%, thereafter 0%). Ben McLane Esq benmclane.com

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