Manager Still Commissions After Being Fired - Traps & Scams Every Musician Must Avoid

You fired your manager. You expected relief. Instead you get invoices, shady emails, and automatic percentage cuts on new checks. This guide is for the artist who just wants to make music without mystery math showing up in their bank account. We explain why managers sometimes keep taking commissions after termination, show real life scenarios, unpack the legal and practical tools you can use, and give exact contract language and negotiation moves that protect your money and your sanity.

Everything here is written for busy artists who want to stop getting robbed and keep making art. We keep the legal talk plain. When we use industry acronyms we explain them like you are on a first name basis. Expect real examples and step by step procedures you can use the same day you read this.

Why a Manager Might Still Get Paid After You Fire Them

Managers sometimes keep taking commissions after they are fired for one or more reasons. Some are legitimate. Some are shady. Most are a mix of ego and paperwork. Know the common reasons so you can spot the scam before it eats your royalty check.

• Contract survival clauses that say manager gets paid for deals that come in for a set period after termination.
• Deals procured during the manager term that close after firing. Sales, sync, and licensing deals can be negotiated over months and paid later.
• Vague contract language that leaves open what counts as a deal procured by manager.
• Oral promises or handshake deals that managers claim continued authority under.
• Bad faith invoicing where the manager claims entitlement on revenue that clearly was not theirs to begin with.
• Unlicensed agent issues where managers act like booking agents and create messy legal exposure which gets interpreted in odd ways by third parties.

Key Terms Explained So You Sound Like You Know What You Are Talking About

We will throw around industry words. They mean actual things. Here is the cheat sheet.

• Commission means the percentage of income a manager is paid for deals they are entitled to. Often it is 15 to 20 percent of gross income but can vary.
• Gross income means income before deductions. If your contract uses net income watch out. Net can be stripped with fake expenses.
• Sunset clause is a contract clause that limits manager commissions after termination. It usually sets a time period and a tapering rate.
• Procuring cause is a legal idea that asks who started or directly brought the work that resulted in the payment. The person who is the procuring cause may claim commission.
• Talent agent is a licensed professional who can procure employment for artists in jurisdictions that require licenses. Manager is different from agent but sometimes steps into agent territory and creates legal friction.
• Recoupment is when someone pays back money taken out earlier. Managers may claim recoupment for advances or costs they paid on your behalf.
• Exclusive manager means only that manager represents you for the categories listed in the contract during the term. Exclusive often creates more leverage for the manager but also needs clearer exit terms for you.

Real Life Scenarios That Make Artists Rage and Lawyers Smile

Here are examples you might have heard in group chats or seen in the horror story docket. We break down why they happen and what to do about each one.

Scenario 1: The Deal Signed Before Firing Pays After

You signed a licensing deal for a song while your manager was employed. The check clears the account a month after you fired them. Manager invoices you for their commission. This is the cleanest case for the manager. If the contract states that manager is owed commissions on deals procured during the term then they are likely entitled to their cut. This is not a scam if the paperwork is clear.

What to do

• Find the contract clause that defines commissionable deals and the term. Read the sunset clause if there is one.
• If the clause is clear and the deal was procured during the term expect to pay. If the contract says gross income and the invoice matches that math, do the payment and move on.
• If the contract has vague language or the manager is claiming extra elements such as future income streams that were not in the deal, ask for a breakdown and if needed consult music counsel.

Scenario 2: Manager Claims Commission on Work They Introduced Months Ago

You met a brand contact at a party you and the manager both attended. Manager insists they introduced the contact to you and demands commission on a sponsorship that closes after firing. This becomes a battle about who was the procuring cause.

What to do

• Collect evidence. Emails, messages, dated notes, and calendar invites that show who connected who and when. A private message that says I told them about you is golden.
• Negotiation is your fastest route. Offer a small payout if you want to keep the relationship clean. If you suspect an inflated claim, ask for the manager to prove direct procurement.
• If the manager sues for commission they must show a chain of events that proves procuring cause. That is a legal fight. See a lawyer before ignoring any court papers.

Scenario 3: Manager Keeps Billing on New Streams and Merch

You fire your manager. Then monthly streaming statements show a cut redirected to the manager. Or merch sales continue with a manager listed as the payee on the vendor site. That is shady and avoidable in many cases.

What to do

• Immediately audit your distribution accounts, publishing splits, and merch vendor accounts. Change passwords and payment routing after reviewing contractual obligations.
• Contact the third party that is paying out. Send a calm but firm email that the manager is no longer authorized to receive funds and request proof of authorization. Keep a copy.
• If the third party refuses to stop payments they may be worried about a legal claim by the manager. Get legal advice and consider asking the vendor to hold payments in escrow until the dispute is resolved if you can afford the time.

Scenario 4: Manager Tries to Use Agent Law to Force a Commission

In some places only a licensed agent can procure certain types of deals. A fired manager who moonlights as an agent might try to claim entitlement or hold you to a deal by saying they were the licensed agent or that you agreed to pay them in writing. This is messy and location dependent.

What to do

• Find out the law where the contract was made or where the work was procured. States and countries vary. For example, certain local laws require licensed agents for booking live performances but not for general management.
• Talk to an entertainment lawyer who knows local agent laws. They will tell you if the manager was acting outside their permitted role and whether you can use that as a defense.

Common Contract Traps That Make Commissions Live After Termination

These are the contract tricks managers and their lawyers like to use. You will see these in many management agreements. Knowledge is prevention.

• Unclear term and termination language that allows manager to claim commissions for an indefinite time.
• No sunset clause so manager keeps claiming forever on new exploitation of old deals.
• Gross versus net ambiguity that lets manager count vendor deductions as expenses to reduce your earnings while still taking the same percentage of a small base.
• Broad definitions of what is procured like language that says manager is entitled to commissions on all income that stems from their introductions without time limit.
• Auto assignment of payment where you authorize the third party to pay the manager directly without a clear process to revoke that authorization after termination.
• Recoupment clauses that allow manager to claw back costs from future income with little transparency.

How to Draft a Management Agreement That Does Not Rob You Blind

When you negotiate a management agreement you can control most of the risk. If you already signed bad paperwork you can still use these ideas to negotiate a buyout or future settlement. Here is the practical language and the explanation that you can use with your lawyer or manager.

Essential clauses to insist on

• Clear term and termination state the exact start date and end date and allow termination with 30 days written notice. If manager wants a longer term insist on a mutual evaluation clause every six months.
• Sunset clause limit commissions post termination to a short, declining period such as three months at full rate then three months at half rate. The exact numbers depend on leverage but do not accept forever.
• Precise definition of commissionable income list categories like recording income, publishing income, live performance gross, merchandising net after venue fees, sync licensing, sponsorship and brand partnerships. State whether commission applies to gross receipts or net after specified deductions.
• Procurement definition define procurement as direct written introduction by manager prior to termination or demonstrable active negotiation initiated by manager prior to termination. Avoid vague language that says any deal that was in manager orbit is commissionable.
• Assignment and payment routing require that any direct payment routing to manager by a third party be revocable by you upon termination. State that manager must provide written authorization to the third party and that you can revoke with notice.
• Expense and recoupment transparency require monthly statements, receipts for any advances, and a cap on recoupment that must be agreed in writing before expenses are deducted from artist funds.
• Dispute resolution include mediation followed by arbitration or court only if necessary. Mediation is cheaper and faster for these fights.

Sample sunset clause you can adapt

Here is a plain English sunset clause that balances fair pay for a manager with protection for the artist.

For a period of three months following the effective date of termination of this Agreement manager shall be entitled to receive the commission set forth in Section [X] on all agreements or payments procured by manager prior to termination. For an additional three months following such three month period manager shall be entitled to receive one half of such commission on those same agreements. After that period no further commissions shall be payable to manager in connection with any new exploitation of the artists works or services.

Do not copy this verbatim into a contract without legal review. Use it as a model for what a reasonable limit looks like. The idea is the manager is paid for what they directly set up but not forever.

Practical Steps to Take Right After You Fire a Manager

If you are reading this after the emotional high or low of firing someone here are the exact moves to make so you do not leave cash on the table and so your accounts stay under your control. Do these same steps when you are about to hire a manager too.

1. Collect and secure all contracts locate the management agreement, any emails that show introductions, and any third party authorizations that route payments to the manager. Scan them and back them up.
2. Change passwords and payment routing update account passwords for streaming distribution, merch vendors, publishing administrators, and label portals. If the manager had access to bank or payment accounts revoke those immediately following legal advice if needed.
3. Notify third parties in writing send a short email to distributors, publishers, sync agents, brands and merch providers saying the manager is no longer authorized and ask them to confirm. Keep copies of responses.
4. Do not withhold payments without counsel if a contract clearly obligates you to pay a manager then withhold only under legal advice. Unilateral non payment can create liability for you.
5. Offer a clean buyout if possible a single payment to end future claims can be cheaper than ongoing admin fights. Use the sunset clause model to calculate fair buyout numbers.
6. Document everything every call, every invoice, every email. If the manager sues you will be grateful you kept receipts.

Negotiation Moves That Are Low Drama and High Payoff

You can pick your battles. Some managers are community members who deserve a fair cut for work done. Some are trolls with receipts. Use these negotiation strategies to grab control.

• Offer transparency and math ask the manager to provide a line item accounting of deals they claim commission on. Many will back down when asked to produce receipts and dates.
• Propose a short buyout calculate expected commissions for the next 12 months and offer a lump sum at 50 to 75 percent to settle. This is often cheaper than legal fees.
• Use mediation it is faster and cheaper than court and forces both sides to present proof to a neutral party.
• Public relations leverage rarely useful but sometimes the risk of public outcry or harm to the managers future deals will push them to settle. Use this tactic with care and legal counsel because defamation claims exist.

When to Call a Lawyer and What to Expect

This is not legal advice. This is what usually happens. If the manager is making large claims or if the money at risk is significant call a lawyer who specializes in entertainment law. Expect these steps.

• Initial review a lawyer will comb the contract, the dates, and any proof of procurement and give you a probability estimate for success.
• Demand letter a lawyer can send a formal demand to stop claiming commission or to provide accounting. This often shakes loose a reasonable solution fast.
• Mediation if negotiations stall you may be asked to attend mediation. This is cheaper than court and often resolves things in weeks instead of years.
• Small claims small amounts can be pursued in small claims court without an attorney in many places. Know your local limit which might be a few thousand dollars.
• Litigation full court cases are expensive and slow. Reserve them for large sums or principle fights. Lawyers will estimate costs before proceeding.

How Much Should a Manager Be Paid Anyway

Industry norms help you spot nonsense. Typical manager commissions are fifteen to twenty percent of gross earnings. New artists or artists with little leverage may give away more. Managers who also act as agents or who personally fund projects sometimes want recoupment for expenses as well. Always make the math explicit.

Examples

• Manager commission for general management 15 percent of gross.
• Manager commission for securing a brand deal 15 percent of the brand fee unless a different rate is negotiated for sponsorships.
• Percentage for executive producing or for funding projects should be in a separate agreement with repayment terms spelled out.

How to Calculate a Fair Buyout Offer

Want a single number to pay and be done? Use a conservative present value approach. Estimate the revenue stream the manager claims and then offer a discounted lump sum that ends claims. Here is a simple formula you can use for a rough number.

1. List all deals that the manager claims they will be entitled to for the next 12 months with estimated gross values.
2. Multiply each estimate by the contract commission rate to get the expected commission total.
3. Sum the expected commissions and offer a percentage of that number as the buyout. Ten to fifty percent is common depending on leverage and proof.

Example

If the manager claims potential commissions of ten thousand dollars over the next 12 months a reasonable buyout might be two to five thousand dollars depending on how solid their claim looks. Use a lawyer to draft the settlement so the release is ironclad.

How to Avoid These Traps When Hiring a Manager

Prevention is the cheapest legal strategy. When you hire a manager from the start make the terms explicit and protect yourself from the darkness of fuzzy language.

• Insist on a clear sunset clause in the first draft.
• Define commissionable income precisely and choose gross where you can.
• Limit managers participation in routing payments. Never give someone the keys to your bank account. Use third party payment systems that you control.
• Build review points into the agreement every six months with an opt out option.
• Keep power of attorney limited or none at all. Manage access carefully.

Red Flags in Manager Behavior

Before you sign or after you fire observe these behaviors and act fast.

• Manager refuses to provide written accounting for deals they claim to have procured.
• Manager insists on direct routing of funds without a revocable authorization.
• Manager threatens to withhold music or contacts unless paid.
• Manager asks you to sign broad or indefinite commitment language that is not time limited.
• Manager introduces you to parties and demands payment for introductions months later without documentation.

What Third Parties Usually Do When a Manager Claims Commission

Often the third party that pays your income will hold payments if a manager claims entitlement. That vendor is trying to avoid liability. You will usually see one of three outcomes.

• The vendor asks for written authorization from the manager or from you. Providing the authorization often resolves the issue fast.
• The vendor places funds in escrow until a release or settlement is signed. This is common in more formal licensing deals.
• The vendor pays the manager because the manager holds a dated authorization or because the manager threatens legal action. You must then sue to recoup if you believe the payment was improper.

How Long Can a Manager Chase Commission

Contracts and local laws set limits. Statutes of limitations for contract claims vary by jurisdiction. A practical business limit is what you negotiate. Reasonable sunset periods are three to twelve months depending on complexity. If a manager claims commissions years after termination ask for proof and consult counsel. Many old claims are not worth pursuing and die with time unless you signed something very broad.

Template Email to Stop Unauthorized Payments

Use this short clear email to third parties if a manager is still being paid after firing. Customize the names and accounts before sending.

Subject: Authorization Withdrawal for [Manager Name]

Hello [Vendor Contact Name],

Please be advised that effective [Date] [Manager Name] is no longer authorized to receive payments or act on behalf of [Artist Name]. Please cease any direct payments to [Manager Name] and confirm receipt of this notice. If you have questions or need written proof of termination please request a copy of the release and we will provide it promptly.

Thank you,
[Artist Name or Business Representative]

Do not send this if you have contractual obligations to the manager that require payment. Get legal advice first if the contract is ambiguous.

How to Keep Your Mental Health While Handling Money Drama

Legal fights are exhausting. Keep your creative routine. Hire an accountant or a trusted business manager to handle money admin. That frees you to make music. Also set a budget for legal expenses and stick to it. Often settling early is cheaper than winning big later.

Stories From the Trenches

Real artists have told us these stories in studio bathrooms and late night DMs. We change details so no one sues and so you can learn without drama.

Story one

An indie band fired a manager who insisted the band owed him twenty percent of every sponsorship for five years. The band found a short email chain showing the manager requested introductions but never closed a contract. They settled for a one time buyout at ten percent of the expected commission. Everyone moved on and the band started controlling its revenue streams.

Story two

A solo songwriter signed a wide reaching contract in a hotel while tired and hungry. Two years later the manager claimed commission on publishing income from songs written later. The songwriter could not produce the original contract. The manager sued. The songwriter settled for a fraction of the claim and then learned to always scan and store contracts in the cloud.

Quick Checklist You Can Use Today

• Do you have the management agreement? If not get it now.
• Does the agreement include a sunset clause? If no start negotiating one.
• Have you revoked third party authorizations after firing? If not do that now and keep a copy of the revocation.
• Have you asked the manager for detailed accounting for disputed commissions? Ask in writing and keep the reply.
• Do you have counsel who handles entertainment disputes? If not get a referral from someone you trust.

Common Questions Artists Ask

Can a manager still get paid for deals signed after I fire them

Generally no if the deal was entirely procured after termination and the manager had no role in negotiating or introducing the counterparty. However if the manager directly set up the deal before termination or introduced the party that later closed the deal the manager may have a claim under a sunset clause or under procuring cause. The contract language controls. If in doubt consult an entertainment attorney.

Is it illegal for a manager to accept payments meant for me

It is illegal for someone to take funds that are not authorized by contract or law. Whether a manager has a legal claim to those funds depends on the contract. If the manager is taking payments without authorization you can demand they stop and pursue recovery. Do not withhold payments you are contractually required to make without legal advice.

Can I change publishing splits to avoid manager claims

Changing publishing splits to block manager commissions can create new legal problems. If the manager has a prior right to commissions changing splits to avoid that right may be bad faith. Always consult counsel before altering ownership or splits on existing works.

Are managers required to be licensed

Not usually. Managers are distinct from talent agents. Some jurisdictions require licenses for talent agents who procure employment. If a manager performs agent tasks without required licensing this can cause legal exposure but also complicate your defense. Ask a lawyer if you suspect the manager acted as an unlicensed agent.

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