Music law

Artist management contract: the clauses to read before you sign

An artist management contract decides who speaks for your career, what they can sign, what share of your income they take and what they keep earning after you split. Here is what each clause means, the ranges that published guides give, the red flags, and a template you can fill in and sign online.

This article is general information, not legal advice. Management contracts follow different rules in each country (some places even regulate who can act as an artist’s representative); for your case, ask a lawyer where you live.

What a management contract is

An artist management contract (also called a management agreement or, in many countries, an artist representation agreement) is the deal between an artist or band and their manager. It sets what the manager does for the career, what they may decide or sign on the artist’s behalf, how they are paid, for how long, and what happens when it ends. It is not a booking agent’s contract (an agent sells shows for a fee per show) and not a record deal: the manager does not own your songs or your recordings. When to look for a manager and how to approach one is in how to get a music manager.

The clauses, one by one

ClauseWhat it saysWhat to ask for
Exclusivity and scopeWhether this is your only manager, and which activities they manage (music, acting, brand deals, content).Exclude activities they won’t work on, such as your day job, teaching or production for others.
TerritoryWhere they manage you: one country or the world.Only the territories where they really have contacts. If they hire a manager abroad, that person is paid out of their commission, not on top.
TermHow long it lasts and whether it renews.A fixed term with options tied to results (for example, an extension only if a record or publishing deal is signed). No automatic renewal.
Trial periodA first stretch after which either side can leave on short notice.A few months to see how you work together before the full term starts.
CommissionThe percentage of your income the manager takes.The rate, and above all what it is a percentage of (see below).
Excluded income and deductionsMoney that is not commissioned, or costs taken off before the commission is calculated.Recording and video budgets, tour support, venue costs and support acts, and if possible sound and lights.
ExpensesWhich of the manager’s costs you pay back.Only costs for your career, with a monthly cap and your approval above a set amount.
Authority to signWhat the manager can sign or accept for you.Nothing long-term or above an amount without your written OK. Record, publishing and brand deals are signed by you.
Money and accountsWho collects the money, how often you get statements and whether you can check the books.Monthly or quarterly statements, a separate account for your money and the right to audit.
Key personIf you sign with a company because of one manager, what happens if that person leaves.The right to end the contract (or follow them) if your manager leaves the company.
Conflicts of interestWhether the manager also owns a label, a publisher or a venue that deals with you.That they tell you in writing, and don’t take a commission on money that their own company pays you.
Post-term commission (sunset)What they keep earning after the contract ends.Only on work done during the term, at a rate that steps down to zero.
TerminationHow either side ends it, with what notice and for what reasons.The right to end it if they don’t report, don’t pay over your money or miss the agreed targets.

On the term, the published guides give similar figures: the Arts Law Centre of Australia fact sheet (2024) mentions a fixed period of 3–4 years as an example, and a Leeds Conservatoire guide written by a music lawyer (November 5, 2020) says that in the UK the initial period is usually 3–5 years, then rolling, often ended with 3 months’ notice. A long term is not bad in itself; a long term with no targets and no way out is.

How the commission is calculated

The same two guides put the usual commission at 10–20% of gross income (Arts Law Centre, 2024) and call 20% the industry norm in the UK (Leeds Conservatoire, 2020), with live income often calculated on net after show costs. The rate matters less than the base it applies to. An example with made-up numbers:

One showCommission on grossCommission after agreed deductions
Fee paid by the promoter4,0004,000
Support act, sound and lightsnot deducted−1,000
Base for the commission4,0003,000
Manager at 20%800600

Same rate, a 200 difference on one show. That is why “gross income” and the list of deductions deserve more attention than the percentage. Also check whether the commission applies to money that only passes through you, like a recording budget you spend on the studio — it shouldn’t.

The sunset clause

The sunset clause (post-term or “trailing” commission) lets the manager keep earning on what was built during the term after the contract ends: songs written, records released and shows booked while they managed you. It is normal — they invested years — but it should get smaller over time and stop. Two published examples:

  • Arts Law Centre of Australia (2024): 15% in the first year after the term (down from 20%), 10% in the second and 5% in the third.
  • Leeds Conservatoire (2020): the full rate for 5 years after the term, then half for 5 more years, then nothing.

Watch for a sunset at the full rate forever, or one that covers anything you do after the term, not only what was done during it.

Red flags

  • Commission on everything, forever: no excluded income, no deductions, and a sunset with no end.
  • A power of attorney with no limits: the manager can sign record, publishing or brand deals for you.
  • The manager collects all your money and there is no statement date and no right to audit.
  • The manager’s own label or publisher signs you, and they also take a commission on that deal.
  • Automatic renewal and no way to leave if targets are missed.
  • Pressure to sign today. A serious manager waits a few days for you to read it with someone you trust.

How to end it

Read the termination clause before you need it. Usually you can end the contract when the term runs out, at the end of the trial period, if a target or a key person clause is triggered, or if the manager breaks the contract (doesn’t report, doesn’t pay over your money) and doesn’t fix it within the notice period. Give notice in writing, keep copies, and remember that the sunset clause keeps running after the end. If there is a dispute, talk to a lawyer before you stop paying anything — see do you need a music lawyer?

Template and review

If you are writing the contract with your manager, start from a template rather than a blank page. TONTRIA Law includes an artist management agreement in English or Spanish with the clauses above: exclusive appointment, what the manager does and cannot sign for you, term with a trial period and targets, commission on gross income less agreed deductions, excluded income, capped expenses, reporting, conflicts of interest, sunset and termination. You fill in the numbers, adjust each clause to your deal and send it to be signed online; starting from the template uses no credits.

If the manager sent you their contract, upload it to TONTRIA Law for a first reading: it marks the term, the percentages and the risky clauses, quoting the exact text and suggesting what to change. For a multi-year deal, take that reading to a music lawyer as well. The other contracts of a music career are in the music contracts an artist signs.

Frequently asked questions

What is an artist management contract?

It is the agreement between an artist and their manager: what the manager does for the career, what they can decide or sign for the artist, the commission and what income it covers, the term, expenses, accounts, the post-term commission and how it ends. It is also called a management agreement or an artist representation agreement.

What percentage does a music manager take?

Published guides put it at 10–20% of the artist’s gross income (Arts Law Centre of Australia, 2024), with 20% described as the norm in the UK (Leeds Conservatoire, 2020). What matters as much as the rate is the base: which income is excluded and which costs are deducted before the commission is calculated.

How long does an artist management contract last?

Often a fixed term of a few years: 3–4 years is the example in the Arts Law Centre fact sheet (2024) and 3–5 years in the UK according to Leeds Conservatoire (2020). Ask for a trial period at the start and extensions tied to results rather than automatic renewal.

What is a sunset clause in a management contract?

It is the commission a manager keeps earning after the contract ends, on songs, records and shows from the term. A fair one steps down to zero: for example 15%, 10% and 5% over three years (Arts Law Centre, 2024), or the full rate for 5 years and half for 5 more (Leeds Conservatoire, 2020).

Can I get out of a management contract?

Usually yes, in the cases the contract lists: at the end of the term or the trial period, if targets are missed, if your manager leaves the company under a key person clause, or if the manager breaks the contract and doesn’t fix it after notice. Give notice in writing; the sunset clause usually keeps running.

Is there a free artist management contract template?

TONTRIA Law (ours) includes an artist management agreement template in English or Spanish, with term, trial period, commission and deductions, capped expenses, reporting, key points on conflicts of interest, sunset and termination. Using the template uses no credits, and the free plan includes 2 documents to sign online each month. For a multi-year deal, show it to a lawyer too.

Run your music business with TONTRIA

Start creating with TONTRIA Clips today, or join the early access to TONTRIA MGMT.