Agents and Managers
R. Spencer
Entertainment Law
Prof. Nick Johnson


 This paper is written for a student who planning on graduating with a degree in Theatre Arts with an emphsis in Acting.  The need for a paper discussing the life outside of the academic world is important considering the biased education the University of Iowa students receive.  The students of the University of Iowa have a great opportunity for education.  In the area of Theatre Arts, the students are exposed to a multitude of ideas and concepts from Kinetics to Meisner.  The information about the theories and historical practices that come from the Theatre Arts department graduates is knowledgeable.  However, these "intelligent" students would be considered, at best, naive by the outside world.  A specific knowledge of how the business "works" is not taught.  The Theatre Arts graduates are left to deal with the real world on the basis of second hand stories and stereotypes.

 There are three jobs that directly relate to the graduating Theatre artist. But all three jobs, agent, personal manager and lawyer have horrifying stereotypes and stigma.  "Agent's just use 'talent'."  "Managers rip you off!"  "Lawyers... well, they are just rats."  Students must know how and why these individuals must be integrated into ones' life.  The stereotypes must be overcome.  Agents, personal managers and lawyers can be made useful to many students graduating in the areas of design, stage management and writing, however this paper will discuss the jobs as they would be executed in dealings with an actor.

 Agents, personal managers and lawyers have more power than an actor.  "There is a ladder: At the bottom is the actor or the actress, then the agent, the business manager, the lawyer, the publicity people, the producer, the studio head, the network programmer, and the president of the network.  Talent is at the bottom of he ladder and, consequently the least powerful."i Agents, personal managers and lawyers can be a big help to the actor so it is important for the actor to know that they are supposed to enhance the career.  If the actor is not aware of how this is to occur then the relationships created might be detrimental.  This paper will inform the reader as to the ways these jobs can affect an actors' career.ii

 An Agent is a vehicle to increase awareness of roles that are available for an actor.  She is supposed to seek and secure employment opportunities and negotiate deals. She does this through a general process that is affected by the specifics of the individual agency.  An agency is defined as a place of business where an agent does business.  This can be a small place or a big one.  The agency can consist of one person or teams of agents.  For an actor the word agent and agency can pretty much be synonymous. iii

 An agent charges 10 percent commission on each job that they "procure " or obtain for an actor.  An agent is able to sustain a living off of this process because they work for multiple actors at the same time.  In small agencies the agents get clients through interview processiv and larger agencies may only take picture and resumes through a mail slot in their door.  Eventually though, any agency will see an actor if they are interested in the possibility of signing.   The manner in which an actor gets to the face to face meeting depends on size or style of the agency.  Once an actor has signed with an agent.  The agent begins to take responsibility for gaining the client employment.

 Although she liked the video tape that was sent to her full of the student film clips, or the portfolio filled with reviews of the many shows that he did in college, or the head shot and resume; she is going to take what talent and physical material that the actor has brought her and make sure it's analogues with the rest of her clients.  A good agent might have suggestions on a better format for head shots or a way to restructure the resume.  She is trying to get him in the best shape for the world that she is going to be constantly sending the actor out in.  An agent  will make sure that her actor is ready because as the agent she are going to try to get him as much activity as that she can get him.  The agent will try to drum up as much business as possible by distributing the head shot, pitching the talent by phone --what ever it takes to get the "activity".v

 For theatre jobs, the agent sends the talent out on general auditionsvi in hopes that the actor is the best one for that job.  General information about auditions is printed in the trade papers.  This information can be accessed by anyone who is willing to buy the paper.  There is information out about auditions that is not for the general public.  It is a fax service that is only accessible by licensed agents.  The service is commonly called the "Breakdowns".   Breakdowns come out every day.  It is a short description of what any current casting director is looking for in their audition.  An agent usually responds to the breakdowns with calls to the casting director followed by pictures from actors that she represents.

 Some agencies have a higher level of getting information.  Larger agencies or well connected smaller agencies have relationships that have been established with someone higher on the "ladder."   If an agent knows a casting director or a producer, this person could notify the agent of a up coming part.  The agent would have the information before the Breakdowns go out.vii  This could give her client an earlier and better chance at be the one chosen.

 A gents and talent have an interdependent relationship so the actor should make sure that he feels comfortable with the relationship.  Keep the lines of communication open.  A good agent will spend many mornings wheeling and dealing with the casting director trying to get opportunities for an actor.  A man who trained in the William Morris Agency, one of the most powerful agencies in the entertainment world, who has since become a creative force in another agency, discussed a high standard of agent-client relationship.  The agents must be available to the talent.  Usually on Mondays there is lots of paper work by Friday afternoons agents should have time to have personal visitations with their talent.viii

 Agents have benefits for the actor but there are a few inherent problems that the actor must be aware of in order to properly obtain a legitimate agent and keep from being neglected.  Agencies are always seeking new talent.  They want the agency to grow because with the increase in the talent pool increases the chance of a person in their agency getting cast.  The increase of clients also gives the agent the chance to have the next big star giving every one associated with the agency more influence.  There are benefits for the agency and agent but for the actor it is another person that the agent will be dividing her time among.  A good agent will accept clients that keep inner competition down.  One agent explained that "Clients can be in the same age category but not with the same looks.  They would then be competing against each other."ix  An actor should find out how the agency keeps inner-competition to a minimum before signing.

 The actors should also be aware of the game that is played with the breakdowns and casting information.  An agent is trying to match their talent with the particular role.  In order to do that she puts each of her actors into a specific type.  She is going to analyze and type an actor but it is to a partial benefit.  It gives the actor some consistent characteristics to be recognized by.  For example, if an actor can successfully play the bad guy then every time the bad guy role come up his agent will think of that actor and give his name the push for that role. The problem occurs if an actor doesn't want to be limited to a particular "type" in his acting.   Again, the lines of communication should be kept open or breached by the actor from time to time.

 More problems can be caused by the laws and the absence of laws in other states.  There only two states that have laws specifically on agents, California and New York. In these states an agent must be licensed creating a bond with the law.  The California and New York laws state that anyone who goes out and procures a job for another party is an agent.x  In California , the sections of the California Labor Code has three sections.  Article 1 helps limit and define the terms used in the code.  Article 2 gives the procedure of licensing.  Article three gives limitations on the operation and management of the business shall be conducted.  This includes descriptions of behaviors that would be fraudulent and the manner in which to solve "controversy." xi

 In New York the same amount of information is covered in one article of the New York General Business Law.  It is written for all employment agencies in the state but has definitions that pertain to "theatrical employment agenc[ies]" and "theatrical engagement[s]." xii  The problem arises because it is easy to think that there is protection just because there is a law.  Besides feeling too safe in the existence of law there is the problem that not all places have laws about agents.  Anyone can just seek a job for you.  They can also just "tell" you that they are seeking work for you.  You have a high risk of being cheated.  However, the standards set by New York and California are followed by larger centers of entertainment because of their  correctness. In Chicagoxiii or Minneapolis, although a person can charge a higher commission they are still only considered legitimate if they charge 10 percent.xiv

 All action of an agent not covered by law comes from established responsibilities.  These have been created by the relationships that agents and actors have had with each other in the past.  The established responsibilities come from the definition of the job by agents themselves. Because there is so much self creation an actor must be aware of the standards and make sure that their specific desires are met.xv

 Once an actor has lots of jobs or many job offers he needs to look into employing the help of a manager.  There are two types of manager commonly referred to in the entertainment industry.  The first is a person who decides what to do with a talent's funds, a business manager xvi and the other is one who helps shape an actor's career, a personal manager.  Personal managers can enhance an actor's career but a personal manager is not the best choice for an actor right out of college.xvii   The need has not been established. A manager can only help if there are offers of more than one job.  The manager gives advice on which one to take.  If an actor is not receiving lots of job offers he doesn't have to worry about which ones to take.  The actor needs to establish a resume before becoming selective.

 The price for the management services is also a deterrent for the actor.  A personal manager can take up to 15 to 25 percent commissionxviii but the actual  cost calculations are a little more complex than just that.  For example in California and New York, a personal manager has to be careful not to be accused of "procuring" so a legitimate personal manager might only work for an actor if the actor was also employing an agent.  The idea is quite justifiable.  In Barr v. Rothbergxix, Roseanne Barr filed a petition against her personal manager Rothberg.  Rothberg was accused of "Procuring , offering, promising or attempting to procure employment.  When Barr's contract for the television show "Roseanne"  came up for renegotiation Rothberg was undoubtedly involved in the renegotiations.  That evidence could be interpreted as "procuring."  Rothberg might have lost if not for the supportive facts.  Rothberg limited her part in contract renegotiations to achievement of creative goals.  Limitation was provable because there was an agent present at negotiations for the purpose of "procuring."

 In Pryor v. Franklinxx, Richard Pryor was taking action against his personal manager which would result in Pryor not having to pay Franklin if Franklin were found to be in violation of the law.  Franklin claimed to not have been involved with actually procuring any jobs for Pryor.  Yet he admitted that he had closed some of Pryor's deals that did result in jobs for Pryor.  Franklin stated that he had only responded to third party offers.  The hearing officer spoke to the idea of a response to an offer not being procurement. If Franklin had only responded to others' offers, although that was not the truth of the matter, "the  furthering of an offer constitutes a significant aspect of procurement prohibited by law since the process of procurement includes the entire process of reaching an agreement." Personal managers have a greater safety net for themselves by working with an agent, therefore the price of an personal manager might be a 25 to 35 percent deduction from an actor's pay.

 When considering a personal manager an actor should be selective.  It is probably time to broaden the horizon as an actor.  Actors are being looked at based on their image. When an actor goes out for an agency call, the agency has sent the talent on a job based on their physical characteristics; the actor is typed.  A manager will be aware of the need for a conscious choice to stay with or go against the type.  Depending on the planned route for the career the manager can perpetuate the type by only making choices in that range, or combat the type by choosing outside of it; whatever is needed to shape a career.  It is crucial to a career to make these decisions.

 A personal manager will be just that, personal.  The personal manager will help in almost every aspect of an actors career.xxi They could help in selection of "material" like scripts, staging, scenery and lighting or in the selection of the "proper vehicle" by selecting the best theatre to do a show in or the "selection of the 'right' television series" to be involved with.  The possibilities are varied.xxii

 Because of the amount of power a personal manger has over an actor, she has to be a trustworthy person.  The knowledge of trustworthiness is not apparent because there are no laws to protect actors from illegitimate personal managers.  The laws specifically protect actors in regards to agents.  The California Labor Code 1700.6. (d) requires that agents get two letters expressing that the agent is of good moral character by two "reputable" residents of the city or county that the agent will be conducting business. Anyone that an actor intends to let have responsibility or decisions with his life choices must be loyal and responsible.  The selection of that person will have to be a carefully researched one.

 The Talent Agencies Act contained in the California Labor Code, was written with the focus of agents.  It does have some relevance in dealing with defining a legitimate personal manager.  By law, the only people that are supposed to "procure" are agentsxxiii and anyone who is an agent must be licensed.  Therefore, if one is procuring and is not licensed as an agent one is breaking the law.  In New York this is a criminal charge.  In California it would have to be a civil suit.  A good personal manager will stay away from any type of "procuring."   In complete honesty there is a little space of exception in the law for personal manager dealing with actors.  In New York a personal manager could "incidentally" be involved in procurement.  This is very problematic because "incidental" would be interpreted by the personal manager or actor initially but when questioned by others, is not just up to the people involved. The final interpretation will determined by the New York court system.

 Although a manager can't procure an agent can legally function in management ways.  According to the California Talent Agencies Act Section 1700.4 Part of it states that in addition talent agencies may "council or direct artist I the development of their professional careers."  This is an element that creates a inner conflict.  The agent is supposed to get as much work as possible for the client and let the manager censure the work in some form by making decisions about what would be best for the actor.  Unless the actor wanted that kind of censure from an agent it would be a problem.  An actor who wants to eat might not be as concerned with building a career but just eating or not getting kicked out of his/her apartment.  This censuring behavior must be left up to the manager and actor.

 The phrase "I was ripped off by my lawyer," is not one that is heard frequently coming out of an actors mouth.xxiv  Lawyers are necessary for general protection as an actor.  They can file a suit in regards to regular societal woes but more importantly they can deal with the world of contracts and items "promised" to an actor.   Any person who wants to employ an actor should be more than willing to let the contract in question be looked at by a lawyer.  None of an actors business can be completely protected by just words.  There are parts of the entertainment business that do deals with handshakes but the parties involved in that business are constantly dealing with each other and have a great deal of reputation on the line if the "contracts" between them are not kept.  An actor is merely an individual; the "lowest rung on the ladder."  It's up to the actor to protect himself. Lawyers should be there to look out for the actor. Too often actors are placed in positions where it would have been better if they had sought legal advice before getting in a bad position.  This "ripped off" feeling comes from not having their rights accounted for. Actors should be able to use lawyers as interpreters of contracts and agreements but the actors are  probably not going to be able to afford them.

 Lawyers are most often used as enforcers.  However in most cases the actions that could be taken will not be as affective after the incident. They are preventative medicine.  Lawyers are dealing with the law all of the time they know what kind of unforeseen trouble that might come up according to a particular set of agreements. The also continually emphasize the need to get it in writing.  They work with documents.  The system is not set up so that an actor could use a lawyer.

 For an actor, lawyers are the furthest from their immediate needs but also the closest.  Lawyers become involved later in an actors career when the actor has the power to negotiate.  Actors sign personal contracts when they work with a theatre, or in a television series or commercial.  Personal service contracts can be long term or short term and they could be exclusive or nonexclusive.  For example, a contract for a film would be a long term non-exclusive, and a television series would be a long-term exclusive.  The contracts are each different but generally standardized.  These standards come from the constant dealings with unions.  Actors Equityxxv, SAG, AFTRA all have standardized the industry in a general protection of actors.

 For the actor the contracts will not be negotiable. There is usually another actor who is waiting in the wings who will sign his name on that same document.  Whatever is offered, is usually accepted.  The actor most likely will not get the part if they do not accept the contract.  Although the actor only has a simple choice, he should completely understand the ramifications of his contract.  That means understanding not only what the contract means at that moment but also what could not happen in the future.  What is going to happen if the series goes to prime time or the commercial starts running nation wide?  An actor's signature on a contract might deprive him of residuals or lock him into a small percentage increase contract that keeps him well below his potential worth.

 Right now, an actor usually doesn't turn to a lawyer even though a lawyer is able to give that information.  Because of the way the system works, it is not possible.  In one of the most active firms in LA, the hourly fees average 300 to 350 an hour.  The best charge 500 dollars.  Lower fees exist in LA but the lowest fees are still an astronomical 200 to 250 an hour.  In the best scenario it would cost 200 for a lawyer to tell an actor that contract means X but he can't do anything about it.xxvi

 This should not be the case.  Actors should be able to go to lawyers for an explanation of the contract that is being offered for a low percentage commission.  The big Hollywood lawyers do contract negotiations for a percentage fee.xxvii  In LA, the fee is sometimes 5 percent of the negotiated contract.  The contracts of the big stars lots of money off of that 5 percent but a lawyer should also be able to take 5 percent of practically nothing to keep an actor from being cheated.  If a percentage commission is too little then perhaps the service should be pro bono  then she could at least get some recognition by the Bar Association for that work.  The lawyer is helping someone and if the actor were to ever have some kind of problem with the contract he would be more inclined to come back to have someone to do his litigation.  The lawyer would then have an opportunity to make money for her client, the actor and herself.xxviii

 Later in an actor's career he there is use for a lawyer.  He needs someone to negotiate his contracts.  As he increases in desirability to the entertainment world a lawyer can become the primary negotiator for him. If a lawyer and actor team up to take responsibility for negotiating an actor's contract then the actor will be working at an advantage.  Studios have lawyers.  They are paying for their protection so they can get the most money out of the deal.  A lawyer can negotiate residuals or benefits or anything that an actor could have the leverage to ask for.

 Whether an actor has maximum desirability or is just starting from college one thing remains true. The actor has a service to give and a deal is created because the actor is something that is desired. The business deal is not about the actor as a human being but as a commodity.  It is far better to get the legal advice up front than to not have the rights to work that has been done or have some major issue that is only discovered after the name as been signed on the dotted line.

 As an actor steps out of the academic world into the world of the entertainment business he has to understand that there is a lot of information to be gathered through experiences.  With a little research he can minimize his vulnerability to maximize the positive experiences. Students should be empowered instead of merely being prey to those who might misuse their talents.

 Agents, personal managers and lawyers are all are service positions in the industry that will make themselves necessary when the time is right. His need for these people will come as he increases in successfulness. These roles have been presented very separated in the paper but they could overlap.  A manager could also be a lawyer and work for an actor.  That same person could be a lawyer for someone else.  all three of these roles could be combined in different combinations creating all sorts of different legal difficulties.  The best combination would be to have a business manager who has a law degree but who is also working in conjunction with a lawyer.  This person would be knowledgeable in the decisions that would optimally benefit an actor.  The creation of a team of individuals who are just there to make sure that an actor is successful is an amazing powerhouse.  High factors of trust are involved but  if they are truly loyal and honest the actor has a great chance of getting to his dreams.


Endnotes

i DAVID FISHOF & EUGENE SHAPIRO, PUTTING IT ON THE LINE: THE NEGOTIATING SECRETS, TACTICS AND TECHNIQUES OF A TOP SPORTS & ENTERTAINMENT AGENT 58-9 (William Morrow and Co. Inc. 1983)

ii This paper is also written for the actors who want to pursue acting but who want a professional second job.  Most actors are unemployed.  The person who can determine steady work is the person who is self employed.  A person who has one job only has one income coming in but a person who is self employed is getting incomes from a lot of other people.  (Source unknown)  I want to continue to act but I want my second job to be a lucrative one. I think it is important to have people who are artist in the jobs of agent, personal manager and lawyer.  How else can we have a more consistent quality of art in our field?  The business is currently run by people who want to turn a profit.  As artist we need to get into the power positions and protect our own.

iii EDWARD J. ADLER,  AGENTS: TELL IT LIKE IT IS. (Educational Video Network 1995)

iv JEANNINE S. COSDEN,  AGENTS: TELL IT LIKE IT IS. (Educational Video Network 1995)

v PATRICIA DAWSON,  AGENTS: TELL IT LIKE IT IS. (Educational Video Network 1995)

vi Michael Shurtleff's book Audition is a excellent source for practicing auditioning techniques.

vii  PETER GIAGNI,  AGENTS: TELL IT LIKE IT IS. (Educational Video Network 1995)

viii EDWARD J. ADLER,  AGENTS: TELL IT LIKE IT IS. (Educational Video Network 1995)

ix  STEVEN R. STEVENS,  AGENTS: TELL IT LIKE IT IS. (Educational Video Network 1995)

x DONALD E. BIEDERMAN Agent or Manager? There is a Difference...Isn't There? 233-37.  LAW AND BUSINESS OF THE ENTERTAINMENT INDUSTRIES § 2.0 (3D ED. 1996)

xi California Labor Code §§ 1700.45

xii New York General Business Law §§ 171

xiii States like Chicago deal with illegal agents through their better business bureaus.  In states without agent laws, an agent doesn't have to have a license. In Chicago you can have more than one agent work for you.   This can be good but it can also be bad.  The good aspects of having an agent work for you is that there is another person going out there trying to get you work.  The possibilities of jobs could logically increase. There is a downside.  If both of your agents want an actor to go to an interview at the same time he has to choose.  There is no line of communication between them.  There is also the chance of undercutting.  David Fishof  discussed this term inthe book Putting it on the Line: The Negotiating Secrets, Tactics and Techniques of a Top Sports and Entertainment Agent.  He said that when two agents are trying get work for the same person they will try to bid lower to get the job.  Some money is better then no money.  That will leave you with less money than you would have had if you had only one agent.

xiv KEVIN HECKMAN AND CHRISTINE GATTO AND CARRIE L. KAUFMAN. THE BOOK: AN ACTOR'S  GUIDE TO CHICAGO 91 (PerformInk Books, Ltd. 1998)

xv EDWARD J. ADLER,  AGENTS: TELL IT LIKE IT IS. (Educational Video Network 1995)

xvi A second type of manager is one that is a financial manager.  It is' not quite like an accountant.  A accountant is someone that will keep track of your money and do your taxes.  If you have several jobs having an accountant might be an good idea.  She will keep track of your many jobs and making sure that you get a tax return is stead of owing the US government money.  As an actor you might not be able to afford to dish out a few thousand dollars at the end of the finical year.  A Financial manager keeps track of you money but also gives advice on what you should do with it as far as investments and such.  This person has what is termed as a fiduciary responsibility for you.

xvii A personal manager, however might be a possibility for an actor who is exploring their musical talent.  Personal managers rule the world of music. In this venue they deal with booking tours and personal appearances.

xviii DONALD E. BIEDERMAN ET AL., LAW AND BUSINESS OF THE ENTERTAINMENT INDUSTRIES § 2.0 (3D ED. 1996)

xix Barr v. Rothberg, Case No. TAC 14-90 Labor Commissioner, State of California Divison of Labor Standards Enforcement (S.M. Kaye, Special Hearing Officer) (April 30, 1992)

xx Pryor v. Franklin, Case No. TAC 17 MP114 Labor Commissioner, State of California Division of Labor Standards Enforcement (C. G. Joseph, Special Hearing Officer) (August 18, 1982)

xxi HOWARD SIEGEL, ESQ., ED. ENTERTAINMENT LAW. 2D ED 491 (New York State Bar Association 1996)

xxii All of chapter nine has very detailed information on specific obligations of a personal manager to his talent.  There are applicatoins of personal managment to musicians as well as actors.  I would have included the informaiton in the paper but I highly recomend reading the whole thing.

xxiii This does not include the exception of the provision in the Talent Agencies Act. It was written to reword the act to make provisions for personal managers who are involved in "procurement" in the music industry.

xxiv This does not include cases where the lawyer was dealing in the music industry.

xxv As a young actor, it is most often a bad idea to become a member of a union.  In Equity for example, once an actor is a member of Equity they can only be in shows that are in Equity contracted theatres.  This might sound good but in actuality  it is quite limiting. An actor must have a good amount or range of credits to be able to stay sucessful in a union.  The limitations of the venues that an actor could get work in is not worth the protection of Equity.  It is better at the early stages to be independant and seek personal legal help.

xxvi This information was gather through an telephone interview with Valerie Kincaide who works

xxvii Legal Eagles Rule the Roost: H'wood lawyers cut the big deals, but some doubt they deserve the big cuts. VARIETY; July 25, 1990, at 42.

xxviii In the presentation of this paper for class I was told that there is a legal service organization which does work for artists.  I have not verified this information.



ANNOTATED BIBLIOGRAPHY

Agents: Tell It Like It Is. Produced by Joel Asher. 50 min. Educational Video  Network. 1995. Videocassette.
 A videocassette designed for classroom study of the business side of  actors relationships with agents.  It is an interview format with interviews with Peter Giogni from David Shapira & Associates, Patricia Dawson-Abrams from Rubiloff & Lawrence, Jeannine S. Cosden from The Cosden Agency, Edward J. Adler from The Agency and Steven R Stevens from Gerler/Stevens and Associates.

Bart, Peter. "The Trouble With Agents." Gentlemen's Quaterly, 66 August 1996, 61- 63.

Biederman, Donald E.,  Edward P. Pierson, Martin E. Silfen, Jeanne A. Glasser,  Robert C. Berry and Lionel S. Sobel. Law and Business of the Entertainment  Industries. 3d ed. Westport: Praeger Publishers, 1996.

Block, Alex Ben. "Home of the Hollywood Pigeons." Forbs, 136 September 9 1985, 42- 46.

Fishof, David and Eugene Shapiro. Putting it on the Line: The Negotiating Secrets,  Tactics and Techniques of a Top Sports and Entertainment Agent. New York:  William Morrow and Co, Inc., 1983.

Fridell, Squire. Acting in Televison Commercials for Fun and Profit. 3d ed. New York: ` Crown Trade Paperbacks, 1980.

Greenspon, Jaq. Careers for Film Buffs and Other Hollywood Types. Illinois: VMG  Career Horizons, 1993.

Heckman, Kevin and Christine Gatto and Carrie L. Kaufman. The Book: An Actor's  Guide to Chicago.  Chicago: PerformInk Books, Ltd., 1998.

Siegel, Howard, Esq., ed. Entertainment Law. 2d ed. New York: New York State Bar  Association, 1996.
 Chapter nine on personal managers is especially helpful for detailed information on the expectations of a Personal Manager, as well as actual contracts ro agreements between actor and personal manager.

Slater, Robert. Ovitz: The Inside Story of Hollywood's Most Controversial Power  Broker. New York: Mc Graw-Hill, 1997.

Walsh, Michael. "Snake and the Fat Man." New York, 28, November 13 1995, 78-82.
 An article on Pavarati and his manager Herbert Breslin.
Agents, Personal Managers and Lawyers: Tools for the Actor