The Importance of Carefully Reviewing Contracts to Limit Legal Liabilities

When entering the entertainment industry you must be sure that you have the proper legal representation. Why is this important? Not only is it important for you as an artist have any run ins with the law, but it is important to ensure that all contracts that are in place have been properly reviewed. Such as contracts pertaining to touring, use of image, and/or publishing & distribution. I recently came across several articles that outlined the importance and discussed breaching of contracts in each of these ways.

Well Ne-Yo, Ginuwine, and Tyson Beckford definitely understand the importance of carefully reviewing and having a contract. Many of you might be familiar with the case Ne-Yo filed against the R. Kelly promoter (Rowe Entertainment) claiming breach of contract. If not, Ne-Yo filed a lawsuit due to his premature dismissal from R. Kelly’s “Double Up tour”. In this lawsuit he requested that he be paid even though he was released prior to the end of the tour. Rowe Ent. Then stated that the reasoning behind was not receiving a fully executed contract from Ne-Yo. In layman’s terms: there were some signatures missing and Rowe Ent. stated, "From a business perspective, it would have been extremely difficult for me to continue under this cloud of uncertainty." The tour was eventually canceled due to legalities that R. Kelly himself had.

In Ginuwine’s mid 2007 contract conflict, he filed a lawsuit against King Music Group for breach of contract, negligent representation, and fraud. In this case Ginuwine alleged that he was falsely convinced to sign a recording artist contract with King Music Group. King Music Group didn’t seem to exist however. The terms & conditions of said contract were that Ginuwine had to produce one album for the company for $1.75 million with an advance of $500,000. There was a signing between the two parties however there seems to be no listing for King Music Group nor has the artist received any financial backing. With Ginuwine being bound to the previously mentioned contract he was unable to make any records for any other companies for fear to be sued himself for a breach of contract with King Music Group.

Tyson Beckford is an internationally know model who has known for being a Sean Jean model, in his law suit he filed also for breach of contract as well as trademark infringement. Beckford claims that there was a contract between himself and Sean Jean to lend his face and image for an advertising campaign in the amount of $1.2 million. The reason the contract was deemed breached was due to all of the payments not being made. He was to receive for $300,000 payments however, only received the 1st payment, part of the 2nd, and neither of the 3rd or 4th payments. With these actions happening, the contract between Beckford and Sean Jean was said to now be null and void. Though this was so, his images were still used for the campaign.

As an artist manager, I urge our clients to ensure that they carefully review all of their contracts (especially those between them and myself). Even the most seasoned artist can fall victim to a fraudulent contract or businessperson. Not only do we have a lawyer on staff at Rising Phoenix Entertainment Group but also, we advise our clients to ensure that everything has been covered in the contracts and looked over carefully by their personal representation. After reading these articles, I personally feel that all contracts are extremely important and should never be taken lightly. You always want to make sure that all “I”s are dotted and all “t”s are crossed (i.e. Ne-Yo contract). As well as make sure you carefully research the company you are considering signing a contract with. (i.e. Ginuwine)


Sources: Music Recording Contract Fraud; Tyson Beckford Sues Diddy for Breach of Contract; Ne-Yo Sues R. Kelly Tour Promoter for Breach of Contract

Negotiations through the eyes of an Artist Manager

What most people don’t understand is that artist management is a skill that some lack. I say down with Sonya Mixon, former artist manager for 69 Boyz, 95 South and 24K. While talking with her we touched on the topic of negotiations. Sonya Mixon began in artist management by accident in 1993 with 69 Boyz, 95 South and 24 K. She has worked with “Thrill The Playa” as well as “CC Lemon Head”. She has encountered various negotiations for them such a Artist Deals, Production, Tours, Management and even Endorsements. When it comes to negotiations Pastor Sonya Mixon expressed the use of making sure of “having a plan before approaching your negotiations”, “researching your opponent”, remaining stern and to the point as well as having leverage over who you are negotiating with.

Ways that she went about this was through having an iron clad contract as well as “rider” for your artist. Also by knowing what your client is worth, what they are looking for and what they are capable of you are able to approach any negotiation confident that the person is going to agree with you.

She has negotiated several things from venue contracts, endorsements, and even production deals. Pastor Mixon has had to negotiate at one point a production that began at 5 million dollars and eventually ended at 3 million dollars. In this deal the label wanted to only offer 2 million dollars, her client requested 5 million. When the negotiations finally ended they approached a deal of 3 million dollars which ensured that each producer (3 of them) were allotted 1 million dollars each to produce an album. In order to be certain that your negotiations are successful in the artist management field you have to know your clients market, know what other artists offer, the industry, know what the client is looking from the negotiations as well as what the person you are negotiating with is ultimately looking for.