Contracts Guide
Bad music deals: red flags artists should spot before signing
Bad deals rarely announce themselves. They usually look like opportunity, access or belief in your career. The risk is hidden in control, money, exclusivity, conflicts, signing authority and the absence of a clean exit.
Educational note: This page is not legal advice and cannot tell you whether a specific contract is enforceable or fair. It helps you identify questions to take to a qualified music lawyer before rights move.
The pattern to watch
One common high-risk structure is a company taking a percentage of all career earnings for exclusive management services, then using that position to move the artist into deals with a record label, publisher, distributor or subsidiary that the same company owns or benefits from.
The headline may sound ordinary: 20% management commission, an exclusive appointment, a label deal, and support from a connected team. The risk appears when those pieces combine into one control system.
If the company can advise you, sign for you, approve for you, commission all income from you and then place you into its own 80/20 label deal, you need to slow the process down. The issue is not only whether the percentage is common. The issue is whether your independent decision-making has been protected.
Quick test
Ask: "Would an independent lawyer, acting only for me, say this structure gives me enough approval, ownership, transparency and exit rights?"
If the answer is unclear, do not sign yet.
Red flag map
A single red flag does not prove a deal is abusive. Several red flags together usually mean the deal needs professional review before you sign.
Control red flags
- Exclusive control over all artist activities without clear service obligations
- Power to sign documents, grant rights or approve deals without your written consent
- Long terms with one-sided options controlled only by the company
- No clear way to terminate if the company stops working, delays releases or breaches promises
Money red flags
- Percentages based on all career income, even income the company did not help create
- Unclear gross/net definitions, deductions or accounting periods
- Recoupable costs with no budget approval or cap
- Cross-collateralisation across recordings, live, merch, publishing or brand income
Conflict red flags
- Your manager also owns the label, publisher, distributor or services company
- Related companies are not disclosed in writing
- The company can place you into its own deals without independent approval
- The person advising you earns more if you accept the deal they recommend
Rights red flags
- Assignment of copyright when a limited licence may be enough
- Life-of-copyright or in-perpetuity language for early-stage opportunities
- Broad future technology, AI, voice, likeness or avatar rights
- No reversion if recordings are not released or works are not actively exploited
Bad deal structures in plain English
Exclusive management plus all-income commission
A manager taking 20% is not automatically unfair. The risk is when 20% applies to every career income stream worldwide, with vague duties, broad expenses, a long term and a heavy post-term commission tail.
Management company signs artist to its own label
The conflict is structural. A manager should help you compare offers. If the manager benefits from the label you are being pushed into, you need written conflict disclosure, independent advice and real approval rights.
80/20 label split in the label's favour
An 80/20 headline split may mean the label keeps 80% and the artist receives 20%, but the true economics depend on whether that is gross or net, what costs recoup, who owns masters and whether income is cross-collateralised.
Power of attorney hidden as convenience
Routine admin is one thing. Authority to sign deals, assign rights, approve uses or bind the artist financially is much more serious. That wording should be narrow and independently reviewed.
Exclusivity: why it matters
Exclusivity means you are locked to one party for the covered activity. That may be normal in a record, publishing or management agreement, but the scope matters. A narrow exclusive recording deal is different from worldwide exclusive control over every artist activity.
Before agreeing to exclusivity, define the services, income streams, territory, term, options, approval rights and exit route. If the other side wants exclusivity, they should be able to explain exactly what they will do with it.
Power of attorney: why it is serious
Power of attorney or signing authority can let another person act on your behalf. In a music career, that could affect deals, rights, approvals and income if the wording is broad.
If someone says it is only for convenience, ask for the clause to say that clearly. Major rights transfers, exclusive deals, borrowing, AI, likeness, sync and related-company agreements should need your informed written approval.
Questions to ask before signing
If the answer is vague, ask for it in writing. If the written answer conflicts with the contract, the contract usually matters more.
Artist-protective terms to ask about
Resource pathway
Use these pages together. The aim is to move from "this feels off" to a precise list of clauses, questions and documents to take to a professional.
Good Management Is Artist Infrastructure
A balanced MRUK position on artist protection, manager sustainability and transparent label investment.
Open resource360 Deals Explained
Understand how all-career-income deals work and what to check before signing.
Open resourceBefore Signing Checklist
A contract review checklist covering term, territory, rights, recoupment and approvals.
Open resourceUnderstanding Music Contracts
Start here for the core rights, money and exit clauses in music agreements.
Open resourcePublishing Rights
Know the difference between songs, recordings, administration, assignment and licences.
Open resourceFind a Music Lawyer or Accountant
When the deal is serious, get qualified independent advice before signing.
Open resourceTell Your Story
Share a confidential experience to help MRUK identify patterns affecting musicians.
Open resourceEducational disclaimer: This guide is for general education only and does not constitute legal, tax or financial advice. Contract wording and enforceability depend on the full agreement and the surrounding facts. Always seek independent advice from a qualified professional before signing a significant music deal.
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