Every profession has its own set of requirements, rules, and organizations. This is because companies want to ensure they have the best on their team. Employers are looking for people with great knowledge and understanding of the job. It is a key role in bringing the company success. However, not all workers are picture perfect. There have been many controversies within any given career. This includes entertainment and hospitality which has a big industry filled with many different roles. One important role includes entertainment management. Although this is still a fairly new business, it still has its laws as well as its issues.
The Requirements
Education
To become an entertainment manager, people are required to go to school for a bachelor’s degree in business, hospitality, or event management. With any of those majors, one acquired skill includes advocating for the arts on both a small and large scale (College Board, n.d.). This is an important skill in the entertainment industry because people are constantly pitching new ideas, art, and talents. If managers do not know how to promote something positively, they will struggle with getting business for their clients. While in school, students also find themselves making connections through jobs and internships. These connections can help new ideas gain more support or investors. Another thing people learn for the job is how to create budget plans. Cal State Fullerton’s school of business requires all business majors to take the same lower division classes (CSUF University Catalog, 2015). A few of these classes include financial accounting and managerial accounting. In those classes, students learn how to budget everything from cash to direct labor. It is necessary to have this skill because budgeting allows people to estimate a set amount of money they can use for certain jobs or expenses. When it comes to entertainment, people need to set aside money for venues, or for transportation expenses. After all expenses are made, managers can compare what the budget was and what was actually made or spent. This allows managers to see if they have lost any money or made a profit. Entertainment managers can also expect to learn about the laws that govern the business.
Laws and Regulations
In every job, there are rules that managers and employees must follow to avoid any troubles. In the Management Communication book, there are three views of decision making. The three views include a moral, economic, and legal standpoint (O’Rourke, 2013). The legal point of view is especially important to be aware of because it can be viewed as a gray area. O’Rourke explains that there are practices that are legal, but it is not necessarily morally correct. This is why it is important to know the laws governing any field, because people can find themselves making decisions that can take a turn for the worst.
Entertainment laws cover everything from film, music, publishing, and multimedia. These laws help to take care of any agreements, licensing, and copyrights in those fields of entertainment. One law discusses child entertainment. In the state of California, parents must request a work permit which allows children to miss up to 5 school days to work (Department of Labor, 2018). Another law regarding kids working in the industry includes that the court can have the family set aside the children’s income in a separate trust (Sec. 6750 Family Code). Both of these child labor laws are important to make sure children are not being exploited for their time or money. In Nevada, there is a live entertainment tax that is applied to the owners of venues where live events are held. The tax must be collected as soon as the tickets are purchased (State of Nevada, Department of Taxation). Knowing about laws like these help managers make the best decision for their work or clients.
Licenses
In California, entertainment licenses are required when there is a professional performer, like singers, actors, and dancers, and the public is allowed admission (Section 5.16.010). Sports is also a form of entertainment. Sports managers in all states have to acquire a license specific to the sport of their choosing. The process usually goes as follows: apply for the position, pass a test, and make contracts with players. In California, it is required to have a separate license for non-combat sports, such as soccer, rugby, and gymnastics (Melinda Gaines, 2017). Knowing which license to have and obtaining it, is essential in securing a job as an entertainment manager.
Organizations
There are plenty of entertainment organizations out there, each tailored specifically to certain types of medias. For example, the Directors Guild of Academy has a list of organizations within their industry. One of the organizations include Women in Film. Their mission is to get more women into the filmmaking business. The California Arts Council creates partnerships with artists to fund their projects. By promoting different types of art, this organization tries to make art accessible to anyone. This is because they hold art to a very high standard and believe that it is a core way that people learn.
Organizations of these types are crucial in such a big community. With thousands of people working to get to the top, being in an organization can help some artists or celebrities feel like they belong somewhere. This community type feel is beneficial in many ways. For one, it brings managers and their clients plenty of new connections. This can help bring publicity to any upcoming movies, songs, or books. It is also important to note that being a member of any organization can send out a message to audiences everywhere. Managers and their companies can use organizations as a platform to fight for what they believe. For instance, Women in Film’s mission is to give women more recognition. It brings more awareness to the fact that it is more difficult for women to make it in the film industry. Managers and clients can join organizations like these, which can earn them more respect in the industry. However, they should be aware that if they try to abuse their platform, it may backfire on them. The goal should not be to associate a client with a certain organization just for the recognition. If the client does not fully understand the mission, or is actually against the values, then it is in their best interest to not commit to an organization.
Problems in the Industry
Learning the skills, the regulations, and getting the connections is highly important in the entertainment industry. This is because it can help managers and their clients soar to the top. Even with the knowledge of all these things, there are still loopholes and gray areas that people find themselves in. Things like bribery exists to cover up any wrongdoings or to get more publicity. One prominent loophole includes scams people have created to gain more money.
The Case
In 2014, Samuel Braslau, Rand Chortkoff, and Stuart Rawitt were found guilty of scamming investors into thinking they were going to film a movie. The trio received 1.8 million dollars from about 60 investors because they convinced investors that the movie would have highly famous actors. Another lie they were told was that over half of the investment funds would be used on production costs. The truth was that Braslau, Chortkoff, and Rawitt split the money between the three of them. Investors were also told that the movie would earn so much money that they would get a 300% return on their investments. This “return” was to come from high sales at the movies and merchandise based off the movie. To make the production even more believable, the group created two companies where investments could be made for the film. These companies were used to purchase the right to the movie title. However, there was no movie, and no money left to return to investors. (U.S. Securities and Exchange Commission, 2014).
Although Rawitt was not the one who started the scam, he found himself in the most trouble. He was the one to tell investors the details about the movie. He admit to knowing that the statements he was giving were untrue. On top of this, he lost more credibility due to drug usage and a history of another scam.
The scam all three committed was a boiler room scam. This is when investors are only told good things about the investment or project. The investors were promised a big movie with an amazing return on their investments, therefore they believed in the “company” and did no outside research.
How it Applies
The case is an example of poor management. It should teach entertainment managers to know who they are dealing with. This can be done through conducting research and holding meetings before finalizing any agreements. If these precautionary measures are followed, managers can avoid signing their clients to companies with bad intentions.
Conclusion
The entertainment industry includes a wide range of careers including sports, acting, publishing, etc. To become a manager in each field, it is necessary to obtain a bachelor’s degree in business, entertainment management, or hospitality. While in school, people should learn basic business laws, as well as skills that will help them succeed in making connections and getting their clients exposure. Once people begin looking for a job in the real world, they must follow all the steps to getting a license. It is important to check the state’s laws on acquiring a license. Then, people must follow up to see if their desired concentration requires any other licenses. Going through this process should help entertainment managers avoid conflict within the industry.