 |
|
 |
a la Johnny Bozobusiness
|
Girl Bruce, after playing in LA clubs for five years
decided he needed a manager. By coincidence, Johnny Bozobusiness,
a local unemployed "talent manager" approached him after
a gig. He asked Girl if he would be interested in hiring a business
agent to tie up loose ends and maybe pull a few strings in the
front office of one of the majors--Dud Records.
So, they talked.
After lying to each other for a few minutes about
previous accomplishments and dropping each's quota of names, they
talked turkey.
Their agreement went something like this:
Girl: "Johnny, I would like you to be my business
agent. You know, shuffle money, coordinate, and keep track of
things in general. I will give you 20% of the gross receipts.
OK?"
Johnny: "You got it, it's a deal."
Johnny's no dummy however. He got burned when an
artist walked on a verbal contract last time out.
Johnny: "We'll put it in writing…my
secretary will type it up."
Girl: "Sounds great!"
So, Johnny scribbled down what was
said and had his sister type it up on some fancy 30 pound paper.
They signed it and another artist-manger association was off and
running.
About a year later an A&R man from
Dud Records signed Girl to cut an album. It turned out to be a
bullet. In a few more weeks they had a monster on their hands
and everybody was wheelbarrowing the money to the bank. Everybody
was happy-right?
Enter Blonde Ambition at "The
Drug Abusion Blues," or just "The Blues," as it
was known locally. It was the nightclub where Girl, Johnny, and
the band hung out.
|
|
Johnny: "He's not coming. He said
you guys partied too hard last night…said to tell you to
drop by his place tonight."
Blonde: "Oh, yeah? And what are
you up to tonight Johnny?"
Johnny was really up to nothing, but
flashed a great idea when he realized Blonde was flirting with
him!
Johnny: "Well, I've often thought
of leaving the country. Maybe go to Saudi Arabia and start a paper
route. You know, self-employed, big money, early retirement…"
They both laughed. Johnny always had
a good one-liner. Blonde liked that about him.
Blonde: "Well, Saudi Arabia is
a long way away. But maybe to get the feel of foreign adventure
we could go to Mexico tonight! I know it's no Saudi Arabian paper
route, but it could be the start of something good!"
Johnny was lost for words for a second.
After all, Blonde was Girl's girl.
Johnny: "I'd love to but I just
remembered I have to meet Girl at my place tomorrow morning at
9 a.m. to go over next month's gig schedule.
Johnny felt safe.
Blonde Ambition: "We can make
it back. I know a place right on the border. If we leave now we
can catch the last hour of Happy Hour! Come on, I'll drive."
Johnny: "Why...why...why not!"
They dropped Johnny's car off at his
place and bolted.
Next morning Girl called Johnny at
8a.m. Just the recorder answered. So, Girl figured Johnny was
down at the corner coffee shop trying to bury a hangover. He figured
he could stop by and grab a cup himself.
When he pulled in he saw Blonde's car!
It reminded him that she never showed up at his house last night.
Then, through the window, he saw Blonde sitting next to Johnny
in a corner booth!
Girl pulled a U-turn and headed home.
He called Johnny's place and left a
message on the recorder…"You're fired!"
Johnny returned home. His answering
machine was blinking red. He played back his messages. He freaked
when he heard the notice terminus.
Johnny quickly looked up an attorney's
phone number in the yellow pages-"First consultation free."
He called and set an appointment.
|
|
The attorney noticed the contract lacked
a termination clause. He told Johnny it was his opinion that Girl
could not fire him and would have to continue to pay Johnny his
20%. Unless, of course, Johnny agreed to the firing, or failed
to continue to perform his part of the agreement.
Johnny called Girl and told him what
his attorney said. Girl hung up and called a competent and well
respected music attorney.
To make a long story short, the music
attorney got the contract declared illegal by the courts. He proved
Johnny had and would continue to violate state law by performing
some of the duties required in the contract. Namely, when Johnny
"coordinated" Girl's nightclub performances he did so
without the proper state license, i.e., he acted as a licensed
talent agent while being unlicensed.
That is the good news.
The bad news is Johnny was ordered by the court to pay back $40,000 in commissions he had already received from his illegal activity.
A week after the bad news the State
Employment Department called Johnny. They told him someone had
filed for unemployment compensation benefits and gave Johnny's
name as their employer.
Since Johnny had hired, paid, and fired band members and sidemen he was recognized by the state as an employer. He consequently owed back workmen's compensation insurance payments. He also owed disability insurance payments.
Soon, other government agencies contacted
Johnny. He owed back state income withholding tax, federal income
withholding tax, federal social security taxes…
When the snowball stopped rolling Johnny
owed about $70,000. The leasing company repossessed his Jag. He
had to sell his house and move to a studio apartment near the
La Brea Tar Pits. He was unemployed.
But wait! Is everything that happened
in this story gloom and doom? No! Blonde Ambition married Girl's
music attorney and moved to Aspen. She now drives a Jag!
|
|
1) He did not seek competent legal counsel when he drew up his artist/manager contract,
2) He violated licensing laws,
3) He violated employment laws,
4) He violated tax laws,
5) The attorney he finally did consult after disaster struck was incompetent in the field of entertainment law, and
6) He became romantically involved
with his bosses' girl friend.
The consequences:
1) His "contract" was declared illegal by the courts,
2) He had to pay back $40,000 in commissions already received,
3) He lost tens of thousands in future commissions,
4) He had to pay state and federal agencies $30,000 in back workmen's compensation insurance, disability insurance, income withholding taxes, and employer and employee social security taxes,
5) He lost his job,
6) He lost his house,
7) He lost his car,
8) He lost his high living life-style,
9) He lost his friends, and
10) He lost his shot at "true
love."
Of course, Johnny was a loser in every
sense of the word. He suffered from both self deception and legal
ignorance.
Yes, unfortunately, it is often the
case that artist/manager associations have legal ramifications
of which one or all parties involved are in varying degrees ignorant.
Consequences can be devastating. It is advantageous to be informed
from the outset by procuring competent professional counsel. Legal
ignorances almost always cost more to rectify than to prevent.
|
|
The business, legal, and social aspects
of artist management can be far reaching. There is a purpose for
revealing, up front, such a disastrous story. The story was designed
to get the attention of the artist manager (or aspiring artist
manager) because this discussion has really only scratched the
surface of the responsibilities an artist manager may be required
to shoulder!
The sad reality is that this amusing tale is not
so amusing if it happens to you!! So, to avoid all this, you should
get plugged-in to the knowledge sources that can steer you clear
of these, and many other types of disastrous situations…
La Costa Music has two online membership websites that can help you answer all your important Artist Management questions:
1) StarMagic Professionals Membership
(SMP Membership)
2) The Music Business…Inside Out!
(TMBIO Membership)
With these online memberships on your desktop, you
will have fast and easy access to the info that will help you
avoid the heartache and financial ruin typically faced by those
who are unprepared!
|
|
SMP -- Learn Artist Management Step-by-Step
(SMP Accounts Only)
| Join SMP!
|
Step-by-Step Instruction to Learn Artist Management from the Ground
Up!
Then later, you can also accentuate your knowledge
of the entire music industry via membership site number two…the
TMBIO Members Website: With online membership to The
Music Business…Inside Out!
you will be able to round out your knowledge of the entire music
business!
TMBIO -- Learn The Music Business...Inside Out!
(TMBIO Accounts Only)
| Join TMBIO!
|
Over 1500 Alphabetical Topics Fully Cross-Linked…
Music Business, Law, Taxes, the Internet and Tax Guru Solutions!
Here are some words from E.J. Wakham,
Attorney at Law:
Throughout history attention to the
consideration to details that others have forgotten has been one
of the hallmarks of success. Frequently those considerations that
seem less important at any given time will later loom large as
they have a greater than anticipated impact on our ability to
meet our goals. In these times it is the person who can quickly
and surely solve the diversionary problems who will more quickly
return to his primary interest and progress more rapidly toward
success.
If you are a member of a "creative
profession" you know how quickly you can get bogged down
in the business aspects to the disadvantage of your productivity.
Frequently, those who march to a different drummer have little
interest in such things as business, taxes, sales and marketing
strategies, publicity campaigns, or other of the ingrained forms
of frustration that a modern society can impose on our time and
energy. However, these problems must be addressed or you find
that you are so busy working that you do not have time to make
a living.
The person who has made it can hire
the experts, but those who are still struggling must find another
solution--one that diverts the minimum of creative energy. Even
the most successful person should have as much knowledge as time
permits. Otherwise, he becomes the prey of the informed opportunist.
This is where this on-line service can help you…
If you have chosen a career in, or
associated with, the Music Industry, or are considering one, this
long awaited on-line service may soon become the most important
weapon in your music business arsenal. This on-line library, the
first of its kind, reduces the almost endless hours involved in
obtaining and organizing the information needed to stay abreast
of the wide range of music and non-music knowledge needed for
success in your chosen field.
This on-line service will not assure success. No information source
can do that, but it does offer accurate and authoritative information
in a clear and concise format. It is comprehensive and current.
It can give you the competitive edge,
save you valuable time and money--probably a lot of money!
Having this information at your fingertips
can allow you to devote more time to the creative aspects of your
business. Not knowing the information offered in this on-line
service may keep you from achieving your goals and may allow someone
else to seize your opportunity!
The Music Business…Inside
Out! makes available
the information you need to address most situations you will encounter
in your music career with confidence and success.
E.J. Wakham
Attorney at Law
La Jolla, California
TMBIO -- Learn The Music Business...Inside Out!
(TMBIO Accounts Only)
| Join TMBIO!
|
Over 1500 Alphabetical Topics Fully Cross-Linked…
Music Business, Law, Taxes, the Internet and Tax Guru Solutions!
SMP -- Learn Artist Management Step-by-Step
(SMP Accounts Only)
| Join SMP!
|
Step-by-Step Instruction to Learn Artist Management from the Ground
Up!
Major Record Distributors - Major Record Labels List
Bands
Get Signed Here: GetSigned!
Tip Sheet
Music Industry Form
Contracts
| A
| B-C | D-E
| F-I | J-L
| M | N-Q
| R-S | T-Z
|
| La Costa Music Home
| LCM Site Index
| SMP Home
| TMBIO Home
| MBD Home
|
| Join SMP
| SMP Search
| Join TMBIO
| Join MBD
| MBD Search
| SongConnect
| ProducerConnect
|
© Copyright 
La Costa Music All Rights Reserved