A new report from EMMA puts the spotlight on artist management across Europe, confirming that the vast majority of managers run their own small businesses, managing a small roster of clients, with most working on a commission basis.
More than half the managers surveyed had invested their own money into artists they represent, even though the majority of managers earn less than €50,000 a year from their management work, with nearly half earning under €20,000.
Jess Partridge, Executive Director of the European Music Managers Alliance, which brings together eighteen national manager organisations across Europe, says that the new report highlights how “managers are at the forefront of an emerging artist-centric music business” and “they play a crucial role in developing and sustaining new talent”.
However, “they are often holding the fort in the most challenging of circumstances, working long hours and investing their own money”, often at “significant personal risk”.
Despite the insecurities around working in management, managers are “creative and entrepreneurial business builders” within the music industry, EMMA says, and as a result “they need greater support if the European music market wishes to compete at the highest level”.
The report is based on surveys that involved 330 managers across Europe. Of those surveyed, 79.5% either run their own management company or work on a freelance basis, with only 15.8% working as an employee for a bigger management company.
Given management can involve a lot of work for each artist represented, 62.5% manage no more than four clients. 55.9% of respondents work on a commission basis, charging a commission on an artist’s earnings, and therefore only earning when the artist earns. 21.8% charge consultancy fees to their clients.
In terms of income, 49.1% earn below €20,000 a year from their management work, with 23.6% having annual earnings between €20,000 and €49,999, and 24.8% earning over €50,000 each year.
Despite many managers reporting modest earnings, 56.3% of those surveyed said they had funded initial artist development for their clients, drawing from personal income or savings. 10% said they had secured grant funding to help with the early stages of a client’s career, while 26.2% said they supported artist development without investment.
The report also considers barriers to growth for managers and the artists they represent, with early-career finance for both artists and managers a key issue. A lack of transparency across the industry when it comes to things like royalty reporting, streaming deals and digital platform economics was also cited as a key issue.
EMMA makes a number of recommendations based on the report, which - unsurprisingly - includes measures relating to finance and transparency.
That includes a call for financial support for managers including “low-bureaucracy bridge finance, touring risk guarantees and matched development funds that recognise managers as investors”.
And another call for better “industry transparency on reporting, deal terms, platform economics and intermediaries, supported by practical tools to help managers price risk and plan sustainably”.