5 Things to Remember Before Signing a Management Contract

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Photo Source: Spencer Alexander

When you decide to sign with a manager, you’re taking a rather large bite of the saucy burrito that is your acting career. It could be the smartest or dumbest move you’ve ever made, but there’s no way to know for sure till you commit. 

So, let’s say you’ve done your research on the manager and your reps like me have no objections. Now it’s time to sign. That begs the question: What, exactly, are you signing?

Agents use contracts called General Service Agreements, which are governed by the state of California and approved by the labor commissioner. Managers create their own. That’s not necessarily a bad thing, but you have to examine them carefully, because you never know what might be in there. Naturally, you should have an agent or entertainment attorney review the paperwork. If that’s not an option, try to find someone with industry experience who can lend a hand. This is not a process you should tackle on your own. 

No matter who helps, there are five points in every management contract that require a little extra attention:

  1. Term: This is how long the agreement will last. You should never sign for more than a year. If everything goes well, you can re-sign after those 12 months.
  2. Areas of Management: This explains what the manager can commission. That’s usually film, television, and commercials. But what if you have a pre-existing voiceover career? Can the manager commission those jobs? And what happens if you write and sell a script? Can they commission that? These are all negotiable deal points.
  3. Key Man Clause: This only applies if you’re signing with a company that has several managers. Let’s say one of them is the person who signed you and does most of the work on your behalf. What happens if he leaves? Can you go too, or are you stuck because you signed a contract with the company? A key man clause designates your manager as your point person, and the company will have to release you if he leaves and you want to follow.
  4. Power of Attorney: Some managers want power of attorney because it allows them to sign contracts and endorse checks on your behalf. This is a no-fly zone. You should never, ever give anyone in this business power of attorney.
  5. Arbitration: This means you can’t sue each other if there’s a problem. Instead, you agree to settle disputes by arbitration, which is faster and doesn’t require you to spend a fortune in legal fees. These paragraphs usually read something like this: “This Agreement will be governed by the laws of the state of California and all claims and disputes arising under or relating to this Agreement are to be settled by binding arbitration in the state of California.” If you don’t see this language in the contract, ask them to put it in.

Remember, these agreements are binding. They lock you in for the agreed upon term so don’t sign lightly. I know a lot of successful actors who regret decisions they made during the early days of their careers when they were desperate to catch a break.

A bad management contract is like a time share agreement or a can’t-miss investment: Sometimes, walking away is the smartest move you can make!

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Secret Agent Man
Secret Agent Man is a Los Angeles–based talent agent and our resident tell-all columnist. Writing anonymously, he dishes out the candid and honest industry insight all actors need to hear.
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