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The Daily Tar Heel

Avoid Contract Woes; Sign Nothing Until You Have a Lawyer in Tow

Of course this statement is not really 100 percent accurate, but I've encountered agents who would book NWA into a KKK Christmas party for a buck.

You see, most agents and managers work off a percentage of the artist's income. Therefore, most of them inevitably try to increase their profits through "tricks" in the contract making.

It seems to me that entertainment is just about the only industry where you know going in that you're going to get screwed and the main objective is to minimize the screwage. This is one reason why it's not only important to have contracts but also the ability to decipher and interpret them.

Written contracts are always necessary in the entertainment industry! Whether it's a booking, management or recording deal, the first step is usually in verbal form followed by a written contract.

Though I have heard of isolated cases of folks within the industry who work with nothing but a "verbal understanding," I've never met any of them, but I never hang out at psychiatric facilities.

A contract serves to solidify an understanding between parties. As time passes, the two parties might have different ideas as to what constitutes their agreement.

By getting it in writing, there are fewer disputes over the agreements of the contract. Later, if a dispute arises, written contracts are much more enforceable by a court.

Lawyers are needed when you are not sure or unclear about the language of the contract.

If it's a simple booking contract or just a general agreement, a contract doesn't have to be that elaborate or drawn up by a lawyer. What needs to be clear, however, is all the terms that the parties have agreed upon.

As the music director at The ArtsCenter, I see a variety of contracts ranging from very simple to insanely complex. In the cases of the complex ones, it's my belief that the agent is trying to play his "tricks" with me.

For example, I will agree with an agent on a artist for a certain date and a fixed price of $1,000, but when I get the contract I will find that buried deep in the verbiage is six hotel rooms, a full backline (drums, three amps and a grand piano), 24 full-stem roses, dinner for eight and two cases of white wine from the south of France.

This $1,000 band is going to cost us $1,800 if we don't catch it (the agents will always swear they told me about the added items and then try to renegotiate).

Don't ever sign anything unless you know what's stated in the contract. Back in 1991, I lived in New York, and I managed a band. Since we were on pretty friendly terms, they said they would have their lawyer friend draw up the management contract.

After debating if I wanted to spend extra money on having it looked over, I sent it down to Chapel Hill where my lawyer, Bill Burton, reviewed it and called me to say, "This is a great contract if you want to get screwed."

While the lawyer-ese on the contract looked like Gaelic to me, Bill was easily able to decipher it and save me from making a huge mistake.

I also think people who use downloaded or copied generic contracts with titles like "Record Contract" or "Management Contract" are making a big mistake.

It is essential that you understand how a contract works before using it.

I've never seen a generic contract that did not need some modification and customization to make it coherent.

Ron Royster is a UNC alumnus who started his music career as promotions director at WXYC in 1980. Having worked in virtually every aspect of the music business, he now heads Freakadelic Records and is the music director at The ArtsCenter.

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