Your music is growing in Atlanta, and a manager wants to sign you. This is a big moment for your career. However, before you put pen to paper, you must understand the legal obligations and financial risks involved in these agreements.
Establishing a fiduciary relationship
Under Georgia law, a “confidential relation” arises when a manager exerts a “controlling influence” over an artist, requiring a duty of “utmost good faith.”
Because Georgia lacks a dedicated Talent Agencies Act, contracts should specify the role as “personal manager” to define the scope of services and separate it from licensed employment agents.
Understanding contract duration and “key man” protections
The “term” is the length of the agreement. Initial periods usually last one or two years, followed by “option periods” that the manager can trigger.
To protect your autonomy, if you sign with a large management firm, negotiate for a “key man” clause. This ensures that if the specific manager leaves the company, you have the right to terminate the agreement. This prevents you from being handed off to a junior employee you do not know.
Calculating management commissions
Most managers request a commission between 15 and 20 percent of “gross income.” A precise definition of gross income is critical. It typically includes almost all earnings from a professional career in the entertainment industry.
With the revised Georgia Musical Investment Act now in effect, parties should clarify whether transferable tax credits count as commissionable “gross income.” Since the 2026 guidelines allow artists to convert these credits into cash, an undefined contract could expose an artist’s tax incentives to manager commissions.
Managing expense reimbursement and sunset clauses
Many contracts require you to reimburse the manager for “out-of-pocket” expenses. Without a specific cap, these costs can accumulate quickly. One common protection is requiring written consent for any single expenditure over a set dollar amount.
Finally, the “sunset clause” is a critical provision that dictates how much you pay the manager after the contract ends. A manager might seek full commission on deals negotiated during the term for several years post-termination.
It is advisable to negotiate a declining scale, such as 10 percent in year one and five percent in year two, until the obligation reaches zero.
Protecting your career before you sign
A well-negotiated management contract is a roadmap for your professional success and a shield for your creative earnings. To ensure your interests are fully protected under Georgia law, consider having an experienced entertainment attorney review the final agreement before you commit your career to a new partnership.