Artist & Venue Deals (Notes)

Straight Percentage
- An agreed upon portion of 100% of income from ticket sales.
- The larger portion of the percentage generally goes to the artist.
- 65% is a reasonable artist percentage.
http://www.performingbiz.com/?content=article017

Straight Guarantee
Offers the artist a set amount. You are obligated to pay the artist this amount regardless of the gross/net revenue of your event.
 

Guarantee Plus a Percentage
Artist gets a base guarantee plus some percentage.
Most often these deals are based on a percentage of the net but it depends on the deal.
 

Guarantee versus a Percentage
Artist gets a base guarantee or an agreed upon percentage of the income, whichever is greater.
 

360 Artist Deal
In the music industry, a 360 deal is a business relationship between an artist and a music industry company. The company agrees to provide financial and other support for the artist, including direct advances as well as support in marketing, promotion, touring and other areas. In turn, the artist agrees to give the company a percentage of an increased number of their revenue streams, often including sales of recorded music, live performances, publishing and mor

Avails
Dates that a venue has available for hold

House Nut
Venue rent and operating costs combined

Rent
The amount required by a venue. A show cost.

Venue Deal - Straight Rent
A set amount collected by the venue.

Venue Deal - Percentage vs. minimum rent
A minimum amount of rent vs. % of gross ticket sales whichever is greater.

Venue Deal - Co-pro
Venue and promoter share in the show costs before there is a split of the profits (or losses).

Operating Expenses
Expenses incurred by a venue and billed to the show, such as staffing and equipment rental. Also calculated as a show cost

Venue Capacity
Seating capacity is the number of people who can be seated in a specific space, in terms of both the physical space available, and limitations set by law.

Gross Revenue
The total income from ticket sales before any expense is deducted

Net Revenue
Net is the income after all the expenses are deducted INCLUDING any artist guarantee

Dealing with Agents
Do your research - venue avails, costs, capacities
Ticket prices
Potential gross
Budget
Only then can you contact the agent
Ask about specific artist(s)
Negotiate and arrive at a price
Promoter sends the Deal/Offer Sheet
Once Deal/Offer Sheet is confirmed and accepted, the agent sends the promoter a contract

The Deal/Offer Sheet
Between promoter and agent/manager
Based on previous discussion with agent/manager
Lays out terms of the engagement
Identifies venue, capacity
Identifies venue deal
Identifies ticket prices
Identifies gross potential = capacity x
ticket price
Identifies show costs (budget)

Deal/Offer Sheet Example
OFFER SHEET
Date of Engagement: October 31, 2012
Artist: Artist Name

Offer: $8,000 (All Inclusive)

Venue: Show Palace
Address: San Diego, CA
Contact at Venue: (800)555-1212
Event: Ladies Night Out
Capacity: 1000
Age restrictions: All Ages
Ticket Price: $15 - $25

Type of Event: Concert
Performance Time: Midnight
Sound Check: 6pm
Presenting Radio Station: KIIS

Contracting Company Name: Your Company Name Here
Contact: Your Name Here
Address: Your Address Here
Phone: Your #
Email: Your Email here

Performance Agreements
Between artist and promoter
Initiated by the artist or artist rep (agent/manager)
Lays out all details of engagement
Rider should accompany the contract
Both parties need to sign

Rider
In theatre (and musical performance), a rider is a set of requests or demands that a performer sets as criteria for performance. Types of riders include hospitality and technical.

The hospitality rider is a list of requests for the comfort of the artist on the day of the show. Common requests are: Specific foods and beverages, transportation and hotels, etc

Event License Agreements
Between the venue (licensor) and the promoter (licensee)
License Fees - rent - flat or %
Operating costs - breakdown outlining what is provided
Ticketing - designated suppliers, convenience fees, processing, facility fees
Comp. ticket allocation to the licensee and licensor
Food & Beverage Sales: If venue operates food and beverage sales, they maintain revenues
Merchandise Sales: If venue provides personnel to sell they collect % of sales
Insurance - General Liability coverage requirements. Venue added as additional insured.

Calculating the breakeven point - Straight Guarantee
Venue Capacity: 500 seats
Total Expenses: $11,000
Artist Guarantee: $1,000
Selling Price: $50
Artist Split: 70/30

Straight Guarantee:
(Total Exp + Artist Guar)/Selling Price = breakeven
($11,000 + $1,000)/$50 = 240 tickets

Calculating the breakeven point - Straight % of Net
Venue Capacity: 500 seats
Total Expenses: $11,000
Artist Guarantee: $1,000
Selling Price: $50
Artist Split: 70/30

Straight % of Net:
(ticket price x number of tickets) - total exp. = breakeven
x = number of tickets
$50x - 11,000 = 0
x = 11,000/50 = 220 tickets

Calculating the breakeven point - Guarantee + a % of Net
Venue Capacity: 500 seats
Total Expenses: $11,000
Artist Guarantee: $1,000
Selling Price: $50
Artist split: 70/30

Guarantee + a % of Net:
(ticket price x number of tickets) - (total exp. + artist guarantee) = breakeven
x = number of tickets
$50x - 12,000 = 0
x = 12,000/50 = 240 tickets

Calculating the gross potential
Venue Capacity: 500 seats
Selling Price: $50

Venue capacity x selling price = gross potential
500 X $50 = $25,000