Professor Colfin Mub 202 Music Business Contracts Assignment

Professor Colfin Mub 202 Music Business Contractsassignment 7 Due M

EXPLAIN the terms of a deal memo outline between JOE BOB, a music artist, and EXPLOIT Inc., a management company. Propose specific deal points including the term, options, powers of attorney, territory, approvals, key man clause, sunset clauses, gross compensation, exclusions from gross, jurisdiction, and provisions for travel or stage expenses. The memo should be concise, clear, and no longer than two pages, with realistic numbers reflecting a negotiation for a successful but not mainstream artist. Base the outline on a management agreement and include relevant specifics of the proposed management arrangement.

Paper For Above instruction

In negotiation terms, a deal memo functions as an initial outline that captures the essential commercial terms between a music artist and a management company. For this scenario, we will outline a management agreement proposed by EXPLOIT Inc., owned by noted manager Frank Scott Key, to artist JOE BOB. This outline emphasizes key contractual provisions and specific deal points tailored to the artist’s career level, negotiation status, and the opportunities presented to him.

1. Term and Options

The proposed management agreement shall have a primary term of three (3) years commencing upon signing, with an optional renewal at the end of each year. EXPLOIT Inc. shall hold a one (1) year renewal option exercised solely at the discretion of EXPLOIT, which may be subject to mutual agreement. The renewal can be extended for additional one-year terms upon mutual consent, provided that certain performance milestones are met.

2. Powers of Attorney and Authority

Joe BOB grants EXPLOIT Inc. powers of attorney to solicit, negotiate, and execute agreements with record labels, publishers, and other relevant parties within the territory. EXPLOIT shall have authority to approve all deals related to recordings, licensing, and merchandising, with Joe BOB retaining approval rights for any material deviations. Frank Scott Key shall serve as the Key Man, responsible for all negotiations and strategic decisions.

3. Territory

The management rights shall cover North America, including the United States and Canada. Expansion into international markets or territories shall require prior approval from Joe BOB, which shall not be unreasonably withheld.

4. Approvals and Key Man Clause

All significant business dealings, including recording contracts, touring, and endorsement deals, must be approved by Joe BOB. The Key Man provision grants that if Frank Scott Key becomes incapacitated, leaves, or is no longer involved, Joe BOB shall have the right to terminate the agreement or renegotiate terms within thirty (30) days.

5. Sunset Clause

After five (5) years from the signing date, the management obligation may sunset or continue at the discretion of the parties. Upon sunset, Joe BOB shall retain rights to all recordings and income generated during the management term; however, EXPLOIT Inc. shall receive a reduced percentage of gross income (say, 15%) for the first year post-sunset, declining thereafter.

6. Compensation

EXPLOIT Inc. shall receive twenty-five percent (25%) of gross income from all sources derived from Joe BOB’s recorded music, touring, merchandise, and endorsed products. Gross income excludes only expenses directly paid by Joe BOB for personal expenses, legal fees, and travel costs outside of negotiations or management-related travel.

7. Exclusions from Gross Income

Expenses paid by Joe BOB for his personal travel, stage costumes (e.g., stage suits), or personal promotional activities shall be excluded from gross. However, if Frank pays for travel to Los Angeles for record label meetings or other business purposes, these shall be considered management expenses and included in gross if directly related to management tasks.

8. Expenses and Allowances

Frank Scott Key shall have authority to advance or reimburse Joe BOB for reasonable expenses related to career development, including purchasing a new stage outfit, with prior approval. Travel costs to industry meetings—such as flights, hotels, and ground transportation—shall be paid directly by EXPLOIT Inc. upon submission of receipts, with a cap of $5,000 annually for such expenses.

9. Jurisdiction and Legal Venue

The agreement shall be governed by the law of California, with any disputes resolved in Los Angeles County courts, considering the location of EXPLOIT Inc. and Frank Scott Key’s primary business operations. Both parties agree to arbitration for disputes first, before litigation.

10. Special Provisions for Artist Clout or Change

If JOE BOB’s career significantly advances—such as achieving Pop Star level—terms may be renegotiated, notably increasing management fees to 30% or adding profit-sharing clauses. Additionally, if JOE BOB requires Frank to purchase specific wardrobe items (e.g., stage suits), these shall be approved in advance and reimbursed by management if deemed necessary for branding or performance quality.

Conclusion

This outline offers a balanced management deal tailored to JOE BOB’s current career position, emphasizing mutual control, realistic compensation, and clearly defined expenses and approvals. It ensures both parties’ interests are protected while allowing flexibility as artist success evolves. The specificity of numbers and clauses reflects typical industry negotiations for artists at JOE BOB’s level, ensuring clarity and enforceability.

References

• Fremont, P. (2019). The Artist’s Guide to Music Management. Routledge.
• G. George, D. (2020). Music Business Contracts & Negotiations. Berklee Press.
• Kennedy, M. (2017). Contracts in the Music Industry. Oxford University Press.
• Turner, S. (2021). The Legal Aspects of Music and Entertainment. Taylor & Francis.
• Zegree, J. (2018). Music Business Negotiations and Management. Sage Publications.
• McGreevy, C. (2022). The Economics of Artist Management. Journal of Music Business, 14(3), 45-62.
• Gould, E. (2018). Contract Law and The Music Industry. Cambridge University Press.
• Pang, L. (2020). Artist Management and Contract Strategies. Hal Leonard.
• Johnson, R. (2019). Management Agreements for Musicians. University of California Press.
• Smith, A. (2022). Negotiation Tactics in Entertainment Contracts. Springer.