Quote:
Originally Posted by FuzzyPlum
I might be wrong but I read that as being the total revenue from all income streams. If they made over a million per show and (at the time) they'd played 86 shows then that would have been over £86m gross from ticket sales alone. Would that not suggest the £59.5m is their estimated net income from tickets, merchandise, record sales, etc???
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I have reviewed many "Performance Contracts" and other forms of contracts. They can be quite extensive (or not) and lately, performance artists have gotten very savvy as to what they earn per concert. There's often a "minimum" take for each band and/or performer. They won't show until that money is "wired" into their account (now its all EFT or ACH transactions.) Its paid well beforehand so there is no misunderstanding on either the part of the promoter/venue or the artist. Plus they need to "book" these things many months in advance to ramp up sales and put the word out that someone is going to appear.
I don't know how they do their accounting on their end, BUT on the booking agency/ promoters end it is actually quite simple. We "book you." (and as a Booking Agency we also get a cut of $$$ too) We pay this and you get that. Note that its not all monetary compensation, BUT there's perks such as Craft Services (crafty) , food, alcohol,(dressing rooms/assistants/production assistants) transportation to and from venue, lighting requirements , stage requirements (riggers, grips/sound/roadies) and who is handling what.
Ever hear of a concert being cancelled for X reason. Well, it can be due to illness etc., but there's also Promoter Guarantees and that's where IF the artists doesn't sell Y amount, then the concert is cancelled. This rarely if ever happens with super groups like FM and Stevie. BUT, it can and does happen.
If you're extrapolating that the "Band" collectively made $86 Million on the last tour at $1,000,000 an appearance, you're right and you're wrong. That may have been the total gross before deductions, BUT tours these days are so expensive that its likely that the net was MUCH less than the quoted figures. Again, its all smoke and mirrors and the GAAP rules will apply once the figures are tallied. Often, the artist(s) will get a minimum for each appearance and that's all they really worry about. Don't worry though, Stevie has enough money to last all of us a lifetime, BUT I still suspect that the largest majority of her income is publishing and ownership rights and NOT touring. IN fact, from friends still in the business, a little birdie told me that the net is a wash or negative on some tours and or concerts. Overhead can kill everytime.
That overhead includes: Promoter, Venue, Management, Management Company, Road Crew, House Lights and Sound, Transportation, Hotels, Hospitality, Lawyers and their Paralegals, Security
There's so many hands in the Artists pocket that I often cringe when I see quoted figures. Someone is getting a piece of that ticket you just paid $300 for...... (and its NOT all going to the artist).