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They used to be called 'The Management' and MGMT is just a shortened version of that word.

^ That is incorrect. In this video..... http://www.YouTube.com/watch?v=rnbxydgNfgk .......it is hard to hear, but at 5:55 band member Andrew VanWyngarden says "MGMT stands for Make Great Music Today."

He was just joking about that. It does stand for The Management.

It stands for "Makes Good Mushroom Trips"

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Q: What do the initials for the band MGMT stand for?
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