What to Look For in a Music Management Agreement: 8 Clauses Artists Should Understand

Chance the Rapper just won a legal battle against his former manager. Sort of.

A US court jury ruled that Chancelor Bennett (aka 'Chance The Rapper') doesn't owe Patrick Corcoran (aka Pat The Manager) $3.8 million in unpaid commissions. On the other side of the ledger, when Chance pursued his own claims against his ex-manager, the jury did award damages. The amount? $35.

Both sides claimed victory, but neither side had much to celebrate.

The verdict, delivered on 20 March 2026, brought an end to a legal dispute that had been running for more than five years - one that consumed the careers, reputations, and one would assume - the legal budgets of both. And at the centre of the whole mess was a question that a written contract would have answered in seconds: did their management deal include a sunset clause?

Corcoran argued it did - that a three-year post-termination commission arrangement had been verbally agreed to as part of their 15% management deal, struck in 2013. Chance's position was unambiguous. "There was no mention of a sunset at all until he filed the court case," Bennett testified. His attorneys pointed out that written communications from Corcoran himself, dating back to 2014, outlined the oral agreement - including the 15% commission - but made no mention of any post-termination arrangement whatsoever. According to Chance's legal team, the sunset clause appeared for the first time in Corcoran's November 2020 lawsuit.

It didn't matter how well they knew each other. It didn't matter that Corcoran had worked tirelessly during the early years of their partnership, at times personally struggling to cover day-to-day expenses as Chance's career was still finding its footing. What mattered in that courtroom was what was actually documented, signed, and agreed to in writing.

The answer? Nothing. Their entire arrangement was based on a handshake.

As one of Corcoran's own lawyers said after the verdict: "The message to music managers is clear - get it in writing".

What Is a Sunset Clause and Why Does It Matter?

A sunset clause is a provision in a management contract that allows a manager to keep earning commissions on certain revenue streams for a defined period after the management relationship ends.

Say your manager negotiated a record deal, landed you a sync placement, or helped you build a touring revenue base. If you part ways, are they still entitled to a cut of income generated from those deals? For how long? On what percentage?

Without a written agreement, you're leaving all of that to memory, interpretation, and potentially a two-and-a-half-week trial.

Sunset clauses are common and, when structured fairly, entirely reasonable. A manager who built an artist's career deserves recognition for what they put in. But the terms matter enormously. A poorly worded or absent sunset clause can leave a manager with nothing to show for years of genuine effort.

As the Chance the Rapper case has proven, a sunset provision is not an automatic legal right. If you want one, it should be expressly agreed and clearly documented.

8 Points to Look For in a Management Agreement

Whether you're signing with a major management firm or working with an up-and-coming manager who believes in your project, these are the clauses that deserve your close attention:

1. Term and termination — How long does the agreement last? What are the conditions for ending it early? Who can terminate, and with how much notice? Is there a trial period? Vague language here is a setup for disputes down the line.
2. Scope of services — Is your manager managing just your 'music' activities, or are they managing (and therefore entitled to commission) all of your activities in the 'entertainment' industry (acting, book writing, modelling etc.)? This distinction is particularly important if you have an outside agent who is already earning commission from your non-musical activities.
3. Commission rate and scope — What percentage does your manager take, and on which revenue streams? Standard rates often sit between 15-20%, but the scope varies. Is it calculated on your gross or net income? If the latter, what deductions are permitted?
4. Sunset clause terms — If the relationship ends, for how long and on what does the commission continue? A well-drafted sunset clause will specify: the duration, the income streams it applies to, and whether the rate reduces over time.
5. Expenses and reimbursement — What costs can your manager charge back to you? Travel, marketing, PR - these can add up quickly. The agreement should clearly define what qualifies as a reimbursable expense and set any applicable limits and pre-approval rights.
6. Decision-making authority — Does your manager have the authority to make binding decisions or sign agreements on your behalf, or do major decisions require your sign-off? Particularly important for recording contracts, publishing deals, and anything with long-term implications.
7. Exclusivity — Are you exclusively committed to them, or can you engage other representatives in specific territories or fields? If so, how does the engagement of the other representatives impact the deal with your manager?
8. Keyperson(s) — If you are signing to a management company, who will be personally responsible for managing you? What happens if they leave the company or go AWOL? Are they able to delegate certain activities to other staff within the company?

Why Verbal Agreements Are So Risky

The Chance the Rapper case is a textbook example of what happens when two people remember an arrangement differently, and neither has anything written down to settle it.

Chance and Corcoran worked together for eight years, from 2012 to 2020. By Chance's own account, he paid Corcoran $11 million over that period. And yet when the relationship broke down, the entire legal dispute hinged on a conversation about commission terms that one side said included a sunset clause and the other said never happened. Two-and-a-half weeks of trial time, years of legal proceedings, and the careers of both parties dragged through public scrutiny, all because nothing was written down.

Verbal agreements can be enforceable, but they are much harder to prove. The problem is proving what was actually said, and on what terms. Memory is fallible. People's incentives shift over time. What felt like a clear understanding in the moment can become the subject of wildly different interpretations years later or, as in this case, a courtroom.

A written contract removes that ambiguity. It isn't a sign of distrust - it's a sign of professionalism. The best business relationships are the ones where both sides are clear on what they've agreed to from day one.

In the music industry, where relationships are built on trust, it can feel uncomfortable to ask for things in writing. That discomfort is worth pushing through. The artists who protect themselves aren't the cynical ones. They're the prepared ones.

How Songpact Helps

Songpact helps artists, managers and music businesses get their agreements documented properly from the outset, before misunderstandings turn into disputes.

Instead of relying on a handshake, a template pulled from the internet, or a long chain of inconsistent emails, Songpact gives you access to professionally drafted music agreements built specifically for the industry. You answer guided questions, create the agreement you actually need, negotiate the deal in one place, and then e-sign and store the final version once it is agreed.

Just as importantly, Songpact is designed to make the process clearer. The platform helps users understand what they are agreeing to, so key points are documented properly from the start.

Because in this industry, good relationships matter. But clear paperwork matters too.