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Miami, FL Law Blog for Entertainment Law, Business Law, and Public Interest

Monday, January 30, 2012

Lady Gaga concert booking falls through

By Pankaj Ladhar of Manos • Alwine P.L.

When the Russian music network MUZ-TV wanted to book a big name entertainer for an event this summer, they came into communication with a Miami management firm. According to new reports, the firm had assured MUZ-TV that they would be able to line up Lady Gaga for the concert.

But when the deal fell through, the Russian music network claimed that it was out $1.5 million, without anything to show for it. MUZ-TV has now filed a lawsuit in Florida seeking the return of the money after the management company has allegedly refused to reimburse the network.

For performers, promoters, agents, labels, and everyone else involved in the entertainment industry, one of the most important parts of engaging in a business transaction, is knowing who you are dealing with. It is not always clear that the person with whom you are talking actually has the authority to do what they have promised, sometimes there is a only a possibility they can deliver despite their best efforts.

On the other side of the coin it is important to know who has the actual or apparent authority to engage in business negotiations on your behalf. Are their individuals out there who may be promising your services despite the fact that you have never explicitly authorized them to do so?

It may be unreasonable under some circumstances to assume that the two principals involved will have direct communication right from the beginning. The owner of the Russian network may not have Lady Gaga's home phone number. But it is important to have some certainty as to the other party's authority and ability to deliver before putting any money on the table.

Source: Entertainmentwise.com, "Lady Gaga A Hot Topic In Russian Lawsuit," Jan. 29, 2012


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