TRENDING THIS WEEK
Insider Sources: Louis Barajas, Angie Barajas and Ashley Romero from Business Management LAB
Last Thursday at Insider Sources we spoke to Louis and Angie Barajas, co-owners of Business Management LAB, a boutique firm specializing in international celebrities in the entertainment industry….
Crypto and NFT Taxes – A Brief Guide
By Julian Schubach – Head of Entertainment Division | VP, ODI Financial
and Jacob T. Martin – Managing Attorney, JTM Tech Law
Shortly after joining the social media app Clubhouse I learned a few things but nothing stuck out to me quite as much as this: People are happy to put NFTs into the world and they love the idea of doing it with another complimentary creative, but there is an incredibly loose approach to doing so that pervades the space. Not only is collaboration a big part of creating and selling an NFT, it also leads to multiple major issues in the long term viability of the revenues generated off of the product.
Prior to getting into the details of how the IRS views NFTs and collaborations, I feel the need to say this “NFTs are awesome. Working with your friends and other creatives… is awesome. But the idea of tying yourself, to another individual and an NFT, that has a single wallet address in PERPETUITY has never been done before. There are many major issues across the NFT marketplace platforms right now with royalties that fall off if the NFT is moved from one place to another, the simple inability to set up a “split royalty” between two wallets, and the lack of guidance from most marketplaces on how they intend to handle issuing 1099’s. That last part is also due to the lack of clarity on what platforms are centralized vs….
Insider Sources: Sally Velazquez and Tracy Velazquez from Empower Business Management
Last Thursday we spoke to Sally and Tracy Velazquez from Empower Business Management for our weekly “Insider Sources” series on Clubhouse. Sally is a tax attorney with over twelve years’ experience in tax, accounting, and business management, providing concierge services while overseeing investments, insurance, and bookkeeping for high-net-worth clients and made partner in 2020. She is joined by her sister Tracy, who has been a business manager at Empower Business Management for over three years.
At the start of the talk, Sally and Tracy shared the necessary steps they take to educate clients, ensuring they make smart business dealings while keeping communication with them open and honest. Later on, they were joined by LaPolt Law attorney Tom Dean, manager of 21 Savage Justin “Meezy” Williams, and CPA Alex Roytenberg, where they discussed novel ways musicians and entertainment clients are generating revenue, attempting to understand the best way to guide clients through investing in this sudden gold rush of NFTs and cryptocurrency. …
Insider Sources: Greg Getzinger from Gursey Schneider
Last Thursday we spoke to Greg Getzinger for our weekly “Insider Sources” series on Clubhouse. Getzinger has worked in business management for over 10 years, and made Partner at Gursey Schneider LLP in January 2020. Specializing in in-front and behind camera talent and high net-worth families, Getzinger shares what it is like leading a business management practice within a larger CPA firm, educating new talent, and the importance of mentorship during his time in business management.
Importance of mentorship
Getzinger got his start at a traditional accounting firm before switching to business management, working in firms such as Gelfand and Mejia & Kaplan before he was recruited by Marie Ambrosino to work for Gursey Schneider. Getzinger shares the importance of mentorship in business management, as he is especially thankful for the guidance Ambrosino showed him when he was first starting out at the firm.
“When I first went in for an interview, Marie and I talked almost none about business management — she just wanted to see what I was like as a person and if we would get along,” Getzinger said. “It’s nice to have someone to teach you those soft skills, and to just have confidence in you when you’re presented to clients and outside counsel….
How to Process over $1BN in Payments
Los Angeles-based financial software company Exactuals reports that its flagship product PaymentHub saw 250% year-over-year growth in the past 12 months. Some of the company’s biggest clients include Global Music Rights, Entertainment Partners, and entertainment’s biggest union: SAG-AFTRA. Aiming to expedite the efficiency in which people are paid, PaymentHub has recently surpassed $1 billion in all-time dollars processed.
Exactuals’ product library includes PaymentHub, RAI, and SR1 which are furthering the company’s goal of centralizing and expediting how metadata is stored,…
Licensing 101: Our guide to celeb licensing
Celebrities have been crossing genres to increase their exposure and personal brands for decades. But while it used to be that only the most captivating personalities could cultivate an impactful brand, the modern world of influencer marketing has changed how we define celebrity. And while it has never been easier to become an influential figure, it has also never been more essential for influencers to license their inner celebrity.
What Is Celebrity Licensing?
Celebrity licensing is when an existing business licenses the image and naming rights of a celebrity. The result is a product that appears to be fully backed and promoted by an influential celebrity personality.
An easy example to show how celebrity licensing can work effectively is the George Foreman grill. Do we think George Foreman was tinkering away in his garage building a plug-in panini maker?…
Insider Sources: Kristin Lee & Steven Palin from KLBM
KLBM describes itself as “fiercely independent.” A boutique business management firm staffed by a 10-person team, KLBM serves some of the top talents in music, sports, TV, and entertainment. Headquartered in Los Angeles but with offices in Nashville and Seattle, the firm prides itself on helping creatives structure their craft into a sustainable business model.
Managing Director Kristin Lee founded KLBM over seven years ago, after previously working at top firms such as Gelfand, Rennert, and Feldman, and NKSFB. The daughter of accountants who happened to love classic rock (dad) and new wave (mom), Lee knew how to operate a record player by age five.
At our weekly “Insider Sources” series, we got a chance to talk with Lee, as well as KLBM’s Operating Manager Steven Palin on Clubhouse last Thursday. We discussed both Lee and Palin’s background in entertainment business management, the relationships the firm develops with the clients, and why business management is an essential part of how entertainment runs.
Lee believes that a performing background helped set a “different level of understanding.”
Lee grew up in an environment where music “was absolutely necessary for life.” She spent long hours listening to the record with her grandparents, and her heavy music background inspired her to play live music herself — she was a touring artist for a few years and now has nearly 20 years of experience in the music business.
Her background not only as an accountant but as a performer allows for a unique level of empathy between her and her client base. …
NBA Digital “Moments” and Crypto Art? Here is the NFT Guide
Move over CryptoKitties, there are some new digital collectibles in town! Launched in late 2017, CryptoKitties became the first “product” to go viral in the blockchain world. It’s timing was rather fortuitous as well as Bitcoin reached a peak of almost $20,000 per Bitcoin towards the end of 2017 (the world is currently in a new round of Bitcoin-mania, with prices climbing to over $58,000 per Bitcoin in late February, 2021.
At the time, CryptoKitties were this generation’s form of Pokemon cards, or Beanie Babies, depending on which generation you are coming from. Its mania hit an all time high in 2018, when one CryptoKitty was sold for approximately $170,000.
CryptoKitties, Blockchain, and Fungibility?
The Blockchain: Before diving into CryptoKitties, it helps to understand how blockchain works, and how in retrospect, CryptoKitties have paved the way for blockchain products – which will likely become more and more prevalent in the coming years….
Insider Sources: Alex Smith & Justin Sroka from MGGGY
Mann Gelon Glodney Gumerove Yee LLP (MGGGY) has, as quoted in Variety, branched out from its roots as a traditional accounting and tax firm. Today, business management accounts for a third of its revenue, as they’ve attracted a client base of major actors, writers, producers, directors, musicians and social influencers — solidifying them as a noteworthy presence in entertainment….
A Win for Songwriters & Music Publishers – The Collection of over $424M in Unmatched Royalties from DSPs
Thanks to the 2018 Music Modernization Act (MMA), on February 16th, 2021, music creatives around the world were able to celebrate a victory against the Goliaths of the Digital Service Provider industry. The Mechanical Licensing Collective (MLC) announced last Tuesday that it had received $424,384,787 in historical unmatched royalties from some of the biggest names in the business.
Apple Music led the way with over $163M transferred, followed closely behind by Spotify (~$152M), with Amazon Music (~$42M), Google Play Music (~33M), Pandora Media ($12M), and SoundCloud ($10M) collectively adding another $100M to the overall bucket. In total, 20 DSPs transferred these unmatched royalties to the MLC. A breakdown of these royalties can be seen below:
Additionally, the DSPs handed over more than 1,800 data files, containing over 1.3 terabytes of data, consisting of over nine billion lines of information.
How exactly did this money come about?…
How to Collect Music Royalties in 2021
With live performances not even a consideration for most, collecting royalties has never been more essential. The problem is that the lines have gone from blurry to nearly invisible when defining how and when artists should collect certain royalties….
Mini-Guide: 2021 Tax Law is a-Changin’ & Here is How
New changes to 2021 tax laws have far-stretching implications for the entertainment industry.
The Consolidated Appropriations Act (known as the Act) was signed into law on December 27,…
Your Guide to Royalties in 2021
Progress in copyright law and the music industry has been a slow, uphill climb for decades. But those who desire change are getting closer to the summit,…
How One Music Management Company is Navigating New Verticals
In a world where “Ballers want to be rappers, and rappers want to be ballers”, the creation of a division of sports management in a music management company doesn’t seem so strange. …
The Mechanical Licensing Collective is Here
In 2018, The United States Congress passed the Music Modernization Act, also known as MMA, a landmark legislation which impacted a wide range of music licensing….
How The Music Industry Can Rebound in 2021
This article was originally published at Music Connection and has been republished here with permission from the author, Andrew Kintz,…
Five Biggest Factors Ruining Athletes’ Finances (And What They Should Do Instead)
Having served as a wealth and business manager to athletes for multiple decades, I can easily recognize the warning signs when a client’s wealth begins to take a turn for the worse….
The Future Game
One of the greatest challenges that many professional athletes face happens off-field; it’s the issue of financial security.
With a career span of only several years,…
Little subtitle for the pictureTime is money
High Net Worth Individuals Leaving the Golden State
This week in Business Mgmt: High Net Worth Individuals Leaving the Golden State
For the best and the brightest,…
Social Engineering Scams on the Rise
Social Engineering scams on the rise, Hollywood Reporter Names Top Business Managers of 2020, NBA teams face different tax rates,…
Blue Wave vs a Red Tide: Tax Implications of the Election Results
This week’s business management news:
The Tax Implications of the Election, Quibi – the short-form streaming service shuts down,…
The New Jet Set: The Rise of Concierge Transportation
Though living in a busy city like Los Angeles comes with many perks (weather, business, culture, food), there is one major problem that almost everyone that has spent some time in the city is aware of: traffic….
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