Why Superstar Artists Like Beyonce and Bruno Mars Are Replacing Powerful Managers With Salaried Staffers
The 1% versus the 15%: a money move, or are impresarios becoming obsolete?
The idea of the artist as mogul is no longer a novel concept. But where that has meant clothing lines, lifestyle brands or other endorsements, some acts are turning their attention to the traditional music management structure, trading commission-based representatives for salaried employees.
In February, Ariana Grande split with Scooter Braun and handed managerial duties to her mother, Joan, and Stephanie Simon at management company Untitled Entertainment, with whom she has worked for the past eight years (though sources say Braun stayed on as a consultant and is involved creatively). In May, Bruno Mars cut ties with manager Brandon Creed after nine years to start his own in-house company. That puts them in the same category as Taylor Swift and Beyoncé, superstars who make decisions with a tight-knit team and retain complete control over their careers.
Despite the recent spate of high-profile defections, insiders agree that commission deals, in which a manager typically makes 15 to 20 percent of an artist’s gross revenue, are still the industry standard for acts of all sizes. And for young and emerging artists seeking a foot in the door, the connections, influence and experience of a top-level manager are invaluable.
But for the superstar elite, employee managers seem to be an increasingly enticing prospect.
“If you want somebody good and you have enough money to pay a generous salary and don’t need an upside, sure,” says one representative of major pop acts. “But most artists can’t do that. The Taylor Swifts of the world can write a check, but Taylor is very business-savvy -- she’s like a female Jay Z -- and she’s the rare exception.”
Still, there are those hands-on artists who are so heavily involved in making their career decisions, like Swift or Beyoncé, that they see no financial advantage to retaining a manager on a percentage basis, opting instead to pay anywhere from $200,000 to $500,000 annually for day-to-day services. (For Swift, who earned $73.5 million in 2015, topping Billboard’s annual Money Makers list, a 15 percent cut would be $11 million.) Others, such as Sean Combs and Jay Z, run multifaceted businesses like corporations and handle the responsibilities of a CEO. Some veteran musicians may assign trusted family members a salary. And for strong-willed acts such as Grande retaining a high-profile manager like Braun, whose roster includes Justin Bieber andKanye West, makes little sense if his counsel isn’t heeded.
“I’ve spoken to artists before that aren’t looking for advice or management; they have their own vision,” says Myles Shear, who manages Kygo and Thomas Jack. "It all comes down to what the artists feel makes sense, and what they feel is fair."
Read the full story by Dan Rys at Billboard