Do I still have to pay the manager percentage for work if I terminate services? 2 Answers as of August 18, 2011Do I still have to pay my manager percentage for work he or she may have negotiated if I terminate services before a pilot was picked up by network? Is he or she entitled to any future earnings per episode?
Greenwald, Mayfield & Vigil, LLP | Darrell J. Greenwald
This depends on what your management agreement called for. Typically such contracts require the artist to pay a commission to the manager, even after the management agreement is terminated, if the employment contract (i.e., the contract with the television show for your services) was entered into or substantially negotiated during the term of the management agreement. Should you have any questions or comments, please call me as I'm willing to give you a free consultation regarding the management agreement.
Answer Applies to: California
Dunlap, Grubb & Weaver, PLLC | Thomas Mansfield Dunlap
Your deal with your manager is governed by the contract your signed with him or her. Typically these contracts require that the artist to pay a commission to the manager for services rendered during the course or term of the representation. The manner in which you can terminate the contract is governed by the contract clauses, and in part, the role your manager played in carrying out their side of the agreement. The only way to obtain a more definitive answer in your case is to share the details of your contract with an attorney. It is possible that if the manager did not properly perform their duties under the contract, breached the agreement in some fashion, or even allowed a termination clause that would prevent the manager from getting paid under certain circumstances. In one of these limited circumstances you could potentially avoid having to pay the manager. This is usually very difficult. Because managers usually have the upper hand when it comes to business knowledge and sometimes legal knowledge, I always suggest that artists take care and retain an entertainment lawyer to review the terms of any management contract to ensure that it can be terminated with little notice and that the commission and other terms are fair.
Answer Applies to: District of Columbia