360 deals explained for musicians

A broad 360 deal may ask for a percentage of: - master recording income - publishing or songwriting income - live performance and touring income - merchandise - brand deals, sponsorship and endorsements - sync and media fees - social media, content and creator income - neighbouring rights or performer income - direct-to-fan membership or subscription income - name, image, likeness and digital avatar income - income from future formats or technologies The key question is not only "what percentage?" It is "percentage of what, for how long, in which territory, after what deductions, and in exchange for what work?"

Exclusivity means you agree to work only with that company, or only through that company, for the covered services, rights, territory or term. Exclusive management can mean one manager controls management services for all artist activities. Exclusive recording can mean you cannot record for another label during the term. Exclusive publishing can mean works written during the term are controlled by one publisher. Non-exclusive means you keep the ability to work with others, subject to the specific wording. A non-exclusive distributor, for example, may take a share only from releases you deliver to that distributor. Exclusivity matters because it can block your next move. If one party controls recordings, management, brand deals and approvals, you may not be able to accept better opportunities without their consent. That is why exclusivity should be tied to clear services, clear performance obligations and a sensible exit route.

A high-risk structure can look like this: 1. A company signs the artist for management services and takes 20% of all career earnings. 2. The management appointment is exclusive, worldwide and covers all entertainment activities. 3. The same company, or a related company, also owns a record label, publisher, distributor or services subsidiary. 4. The contract gives the company authority to sign documents or approve deals for the artist. 5. The artist is then signed into a label deal controlled by the same group, sometimes on terms such as 80/20 in the label's favour. The issue is not only the percentage. The issue is conflict of interest. A manager is supposed to help the artist judge whether a label deal is good. If the manager also owns or benefits from the label deal, the artist needs independent advice, written conflict disclosure and approval rights before anything is signed.

Power of attorney means giving someone authority to act on your behalf within the powers granted. In a music deal, any clause allowing someone to sign agreements, grant rights, approve uses or collect income for you should be treated as high risk. Questions to ask: - What exact documents can they sign? - Can they sign me to their own label, publisher, distributor or subsidiary? - Do they need my written approval first? - Is the authority limited to admin, or can it transfer rights? - Can I revoke it? - Does it survive the contract ending? - Does my lawyer approve the wording? For many artists, a safer structure is limited administrative authority only, with written approval required for any deal that transfers rights, creates exclusivity, grants likeness rights, borrows money, incurs major costs or changes ownership.

A 360 deal can become much harsher if costs from one area are recouped from another. Example: the company spends money on recording and marketing. Your live income, publishing income or merchandise income is then used to recoup those costs before you receive money. That may be called cross-collateralisation. This is where "20%" or "80/20" can mislead you. The practical result depends on the definition of gross income, net income, recoupable costs, deductions, accounting periods, audit rights and whether one income stream can be used to cover losses in another. Ask for a worked example in pounds before signing. If the other side cannot explain when you get paid, what is recouped, and what happens if one stream loses money, the deal is not clear enough.

Artist-protective terms may include: - lower percentages for income streams the company does not actively work on - caps on commission from live, merchandise, brand and publishing income - no commission on income earned before the deal - no commission on gifts, damages, grants, hardship funds or unrelated employment - no assignment of copyright unless there is a strong reason - clear approval rights for sync, brand deals, AI, likeness and major spend - written conflict disclosure for related companies - independent legal advice before signature - a short initial term with objective performance milestones - a sunset clause reducing post-term commission over time - audit rights and regular accounting - reversion or release obligations if music is not released