2021 Top Business Managers TOURING INCOME PLUMMETED
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Players 2021 Top Business Managers TOURING INCOME PLUMMETED. THE VALUE OF SONG CATALOGS SOARED. GOVERNMENT LOANS FLOWED FAST. AND THESE MONEY MEN AND WOMEN HELD IT ALL TOGETHER FOR THEIR SUPERSTAR CLIENTS HE MUSIC INDUSTRY’S LEADING BUSINESS drill,” says veteran money manager Bill Vuylsteke. managers serve as financial advisers, tax Other events of the past year, including protests against racial accountants and fiscal therapists for artists and injustice, have prompted some to review their investment T executives alike — and they have long preached choices. (Widely popular index funds invest in publicly traded the importance of saving for a rainy day. But companies, including private prison firms linked to mass what if the storm lasts for a year? incarceration and systemic racism.) Funds guided instead In 2020, as revenue from live touring halted, traditional by environmental, social and governance principles drew recording sessions ceased and marketing meetings moved to record investments in 2020, according to the financial firm Zoom, the roles of business managers became more crucial Morningstar. “Our clients have definitely taken an increased than ever. “This year has been a bit of a roller coaster,” says role in deciding how their monies are invested,” says Peggy Sally Velazquez, owner of Empower Business Management. Stephens of Tri Star Sports & Entertainment Group. What Business managers helped their clients financially survive hasn’t changed is the essential need for constant connection the pandemic by revising cash flow projections, focusing between artists or executive clients and those who manage on long-term plans and exploring new revenue sources, their money. Says Belva Anakwenze of Abacus Financial including song catalog sales in a red-hot market. When Business Management: “We shifted our client-facing approach necessary, they applied for government aid available under and communicated with clients in new ways — even having the CARES Act and subsequent legislation — “a gigantic fire meetings in my home driveway.” —THOM DUFFY ILLUSTRATION BY KLAWE RZECZY FEBRUARY 20, 2021 • WWW.BILLBOARD.COM 5 5 THE PLAYERS Iván Alarcón discussions” about fnancial planning. business and look for possible strategic Larry Tyler CO-FOUNDER/CEO And, she says, “we were able to alliances among diferent brands.” PARTNERS Vibras Lab successfully assist our live-events- Best advice in an economic downturn NKSFB As the business manager for Rimas heavy clients in securing the SBA “There is nothing 100% sure in this indus- The frm — with six locations nationwide, Music and some of Colombia’s biggest [Small Business Administration], PPP try. Everything can suddenly change. That some 550 employees and a client roster stars — including J BALVIN and Karol G [Paycheck Protection Program] and EIDL is why it is so important to diversify.” that includes Drake, Pharrell Williams, — Alarcón, 42, has increased his staf [Economic Injury Disaster Loan funding]. Post Malone, The Cure, Culture Club and to 30 during the pandemic. The frm We have also helped prepare our clients Sam Smith — moved its Sherman Oaks, sought alternative revenue sources for its for the Save Our Stages Act and are Angie Barajas Calif., ofce to new quarters in Encino clients, from “documentaries, livestreams positioned to be frst in line” for funds. Louis Barajas despite the pandemic. Bolno notes the and merchandise” to “partnerships or Most important lesson learned from CO-FOUNDERS/BUSINESS MANAGERS company went to substantial expense to endorsements in rising markets, such as the pandemic “The pandemic taught us Business Management LAB make its ofce COVID-19-safe — “our the gaming industry,” he says. “All artists all the importance of adaptability. Our Louis Barajas, 59, and Angie Barajas, 57, employees felt protected,” he says — but should have very clear and accurate business had to be nimble in how we became essential fnancial counselors to NKSFB also gave staf the option to work knowledge of their cash fow, and just communicate internally and externally. their clients — Yandel, Nicky Jam, Ca- from home. “It has been a challenging as any other business, their source of More importantly, we had to be readily milo and Gerardo Ortiz, among others time,” says Brown, “where it has been income should be diversifed.” Alarcón available to all of our clients — all facing — who relied on the husband-and-wife very important to provide the support says Vibras also invested in new technol- fnancial changes and challenges — at team to help outline cash fow strategies system that clients have required. They ogy that allows clients access to their the same time.” to survive the pandemic. “Our team of are artists, and their emotional, creative fnancial information in real time. over 20 employees worked ferociously nature needs encouragement, which is Best advice in an economic downturn all year to get our clients PPP loans what [we’ve been] able to provide.” “Diversify your business and sources of Claudia Arcay and work on new budgets,” says Louis. New income sources clients tapped income, and understand your cash fow. INDEPENDENT BUSINESS MANAGER Knowing that clients weren’t touring, his “We have been looking at selling their Organize your catalogs, look for possible Carcay Global Entertainment team also used the time to “tie fnancial publishing catalogs or royalty income pending income, and search for new Arcay, 43, who recently parted amicably loose ends,” he adds, working on estate streams to take the beneft of the [cur- royalty sources.” from WK Management, has been the and retirement plans and getting life and rent] capital gains tax [rate] on these business manager for Carlos Vives and health insurance in place. types of sales and get substantial lump was “ready to pivot and adapt” when the New income sources clients tapped sums from the companies” buying Belva Anakwenze Colombian singer released his album “Advances on publishing deals, catalog music assets. —Brown PRINCIPAL/BUSINESS MANAGER Cumbiana last May. By helping to create sales and business/marketing opportu- Abacus Financial Business Management 10 virtual events, along with a short flm nities. A lot of our clients, with a lot of For her music clients during the titled The Last World of Cumbiana, she time on their hands, were very entrepre- Julie Boos pandemic, Anakwenze made “new generated momentum for Vives after neurial and did a lot of investing in real OWNER/BUSINESS MANAGER/ normal” money moves, upgrading his three-year hiatus. “My advice for the estate and the stock market. We saw CHAIRMAN technology for easier access to fnancial artist,” says Arcay, “is to try to stay as some of their investment portfolios grow Jamie Cheek information and “having authentic conservative as possible, diversify the 20% to 60%.” —Louis Barajas OWNER/BUSINESS MANAGER/ PRESIDENT David Boyer J Balvin Marius Bercovici OWNER/BUSINESS MANAGER/VP Justin Kobay Carmen Romano Bruce Seckendorf OWNER/BUSINESS MANAGER/VP PARTNERS Duane Clark LL Business Management OWNER/BUSINESS MANAGER/VICE The New Hyde Park, N.Y.-based man- CHAIRMAN agement partnership helped clients Lil Chris Hughes Nas X, Timbaland, T-Pain and Boots BUSINESS MANAGER Riley create new revenue in catalog FBMM sales and streaming, which will “sustain FBMM, with ofces in Nashville, New [them even] when touring recovers,” says York and Los Angeles, went into over- Kobay, 31. “Clients are seeing frsthand drive helping clients stay ahead of the the value of owning their intellectual massive music business disruption. On property.” As always, they continue to the short list: helping artists navigate the teach clients the basics: “Build up that CARES Act and guiding those inter- emergency fund,” says Bercovici, and, if ested in launching or accelerating their necessary, “downsize your cost of living.” livestreaming business. “Livestreaming is Best advice in an economic downturn a newer source of income that appears “Health and your family are most to be here to stay,” says Hughes, 46. important.” —Bercovici “The pandemic simply presented an opportunity for some artists to look at it sooner than they may have otherwise.” David Bolno Most important lesson learned during Nicholas Brown the pandemic “The rainy day we all talk Bernie Gudvi about can happen on a grand scale. Michael Karlin Preparation and communication, in any Michael Oppenheim scenario, always pay of.” —Romano IMAGES ALEXANDER TAMARGO/GETTY 56 BILLBOARD • FEBRUARY 20, 2021 NOTE: Executives whose ages do not appear declined to provide them. THE PLAYERS Mark Carter the pandemic “Hopefully, we can all Lipa PRINCIPAL recognize the devastation and ruin to Prager Metis our lives, families, communities and Bruce Kolbrenner businesses from an unhealthy world MANAGING PARTNER [and fnd] greater respect for the impor- Prager Metis tance of science, institutions, govern- Joseph Callaghan ments and individuals working col- Lahteefah Parramore lectively toward maintaining a healthy Thomas Smith planet. Also, the inspiration and healing Simon Winters powers of art, nurturing the essence of PARTNERS our souls.” —Hagaman Prager Metis To make up for lost touring revenue, Prager Metis helped clients fnd alterna- Lester Dales tive sources of income, says Kolbrenner DIRECTOR — coming up with valuations for Dales Evans & Co. potential catalog sales, auditing royalties Despite the one-two punch of the pan- to identify underpayments and fguring demic and Brexit in the United Kingdom, out how to monetize virtual concerts. London-based Dales Evans celebrated