Sunset Provision
Type: noun
Pronunciation: /sun-set-pro-vee-shun/
Also spelled or known as: Sunset Clause
Plural: Sunset Provisions
Related: Termination Clause
What does Sunset Provision mean? A contractual provision in music management contracts that allow a manager to earn decreasing commissions over time on deals they negotiated during the contract period, after expiration or termination.
Sunset Provisions (aka sunset clauses) are commonly used in management contracts but can also be used in recording agreements, licensing contracts, non-compete provisions, and royalty arrangements. IE; Manager receives 15% in year 1 commission after contract expires or is terminated, 10% in year 2, 5% in year 3, 0% after year 3.
Sunset Provision synonyms: Sunset Clause, Expiration Clause, Automatic Termination Clause
Example sentence: “The payments ended after the agreement’s sunset provision was over.”
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