While you’re in the spotlight, who’s thinking about your financial interests? If you don’t have someone taking care of your business while you’re building a brand, you can face legal battles, tax complexities, royalty disputes and even identify conflicts. You need someone in your corner navigating collaborations, endorsements and potential roles, tours and performances.
That’s where your business management team comes into the picture. They focus on ensuring your business decisions are in your brand’s best interest and align with your short- and long-term financial goals. They quarterback the team that handles matters related to tax compliance, royalty contracts and your name, image and likeness (NIL), among other daily business needs.
To help speed you on your brand-building path, here are some secrets to how your business management team will help you grow your brand’s impact, revenue and legacy.
As you plot your brand, consider whether you will brand your own name. This is important because you could easily lose control over your name and reputation without the right business safeguards. Just ask Alon Shaya, a celebrity chef who left his namesake New Orleans restaurant, only to enter a legal battle for the right to his own name.
Shaya only filed for the trademarks on his name after he left his restaurant, which continued to operate under the “Shaya” name as part of BRG Hospitality Group. The familiarity of the name led to a lengthy legal conflict, with each side suing the other. While the two sides eventually settled amicably, Shaya had to invest significant money and time to fight a battle for his name.
Get in front of issues like this by making sure you have a business manager who knows how to work with your legal team to protect and maximize your NIL, so you don’t lose out on opportunities, or worse, damage your reputation.
When you’re establishing and growing your personal brand, protecting your intellectual property and managing diverse income streams gets complicated quickly. If you neglect the legal and financial elements of brand management, you can miss lucrative opportunities for royalty payouts or jeopardize your reputation.
With all the digital channels and streaming services available, you could be leaving money on the table. A business manager can help evaluate your royalty payments, manage your contract terms and loop in contract compliance experts to make sure you’re getting all the payments you’re due.
Without expert business guidance, it's easy for even the most successful athletes, influencers and entertainers to find themselves in tough situations. Here are some real-world examples of common financial pitfalls.
For example, college athletes earning NIL money may not realize that in addition to their home state, they have to file tax returns in each state where they’re paid for public appearances or sell gear with their name attached. Having a tax-savvy business manager handle your business income and tax reporting helps you avoid surprise tax notices and penalties.
Many recording artists sold their catalog rights during the pandemic because streaming greatly increased music collection valuations. However, when artists sell the rights to their music, they may turn off an annual revenue stream and face hefty tax bills. For an artist who needs cash, a more strategic move might be taking a loan against the catalog asset. After their tough time eases, they can repay the loan and retain their catalog rights.
An athlete thought he had transferred an apartment building out of his estate but didn’t file the correct tax paperwork. The building appreciated significantly during the crazy real estate boom over the past few years, and now it’s an incomplete gift that comes back to the estate. Guess who’s on the hook for hundreds of thousands of dollars in taxes?
When you or your brand crosses borders, the business management tasks involving international tax responsibilities get even more complicated. Jumping into a global deal without adequate planning can lead to double taxation or other costly penalties. Word to the wise: don’t go it alone.
Many entertainers and athletes are shocked by a huge tax bill because they used their family accountant to establish their business structure. Working with an entertainment business expert who makes strategic and proactive decisions about your business entity, you can yield substantial tax savings and increased financial security. This matters because sports figures and entertainers can face tax rates of 40% to 50%.
Growth comes with its own set of brand considerations and cadence. A career in entertainment or sports may be lucrative right up front or come in waves of revenue. Your business manager plays a critical role in ensuring you have enough money for today and tomorrow. Here are some ways they can help you drive growth and sustainability for your brand.
It’s easy to feel overwhelmed by the complex details of things like royalty agreements and tax planning. Learn more about how a business manager can help you further both your brand and your financial goals and find out how our business management experts can help you protect and amplify your brand’s impact, financial success and legacy.
Get a personal consultation to explore how we can support your success and manage your daily business affairs.
