The Evolving Role of Business Managers in the Entertainment Industry
Elite business managers are adapting to complex global tax landscapes and new revenue streams.
1Expanding Scope of Management
Business managers in the entertainment sector now handle far more than basic bill payments or cash flow monitoring. They must navigate complex international tax policies, currency fluctuations, and intricate royalty structures. As client needs grow, these advisors act as essential partners in managing long-term wealth across diverse, often unpredictable, creative careers.
2Shift Toward Proactive Forecasting
The profession has transitioned from reactive reporting to proactive financial forecasting. Managers now spend significant time modeling potential outcomes for tours, catalog sales, and publishing deals before decisions are finalized. This shift ensures that clients understand the actual net profitability of their ventures rather than just reviewing historical income statements.
3Navigating Industry Instability
The entertainment landscape has faced nearly a decade of uncertainty, exacerbated by the COVID-19 pandemic and recent labor strikes. Business managers now emphasize education and preparedness to help clients survive periods without traditional work. They are increasingly involved in contract negotiations much earlier to mitigate risks associated with relocation and taxes.
4Consolidation and Firm Transitions
The sector is seeing significant consolidation, exemplified by the September 2025 merger between Adeptus Advisors and the accounting firm Current. Such transitions allow firms to maintain specialized imprints while leveraging broader networks. These larger entities manage high-profile rosters, providing deep expertise in royalty audits, contract compliance, and forensic financial investigations.
5Efficiency Through Digital Transformation
Firms are increasingly adopting paperless workflows and artificial intelligence to streamline administrative processes. By integrating technology with human oversight, managers can improve operational efficiency while maintaining the personal touch required for client relationships. These tools help track complex revenue streams, though human verification remains critical to ensuring accurate financial outputs.
6Emergence of New Revenue Streams
The rise of Name, Image, and Likeness (NIL) rights has created entirely new revenue opportunities for college and high school athletes. This shift has expanded the client base for many business management firms, requiring them to adapt their strategies to serve younger, emerging talent alongside established stars in sports and entertainment.
7Flexibility in Client Roster
Firms like 360 Business Management have rapidly expanded their rosters to include dozens of new athletes across the NBA, NFL, and WNBA. Managing these clients requires a nimble approach to handle varying levels of professional maturity. Managers must balance realistic financial expectations with the need to provide stability during market volatility.
8Boutique Services vs. Consolidation
Some firms are choosing to remain boutique to offer a more bespoke, high-touch experience as larger competitors merge with private equity-backed entities. These smaller outfits focus on building strong personal relationships, ensuring clients feel supported beyond just the numbers. This strategy aims to insulate creatives from the industry's frequent, dramatic ups and downs.
9Managing Complex Tour Logistics
Touring remains a superpower for specialized firms, requiring precise coordination of money and teams before revenue arrives. A tour is a business built around an immovable deadline where one change can impact the entire operation. Managers must understand a client’s personal goals and family expectations to effectively guide these high-stakes financial commitments.
10Beyond Traditional Financial Advice
Business managers are increasingly acting as personal CFOs, advising on venture capital investments and professional development. For instance, some managers help clients launch funds or navigate the complexities of content ownership. This holistic approach ensures that clients are prepared for various professional roles, including producing, podcasting, and other diverse business ventures.
11Risk Mitigation and Insurance
In high-risk areas, such as regions prone to wildfires, business managers now prioritize insurance costs as a primary factor in real estate acquisitions. For some clients, annual homeowners insurance premiums can exceed $100,000. Managers must factor these substantial, non-negotiable costs into the overall financial planning to protect the client's long-term assets.
12Human Element Remains Essential
Despite the integration of AI and advanced financial tools, the core of the business manager's role remains the human connection. Managers must communicate effectively to explain complex solutions and manage client expectations. Ultimately, the ability to understand the person behind the portfolio is what defines success in this high-pressure, evolving industry.
Original article: Variety — The Evolving Role of Business Managers in the Entertainment Industry