The settlement is where the money from the night is split between the venue, the promoter and the artist. Get it agreed before the show and the conversation at the end of the night takes five minutes. Leave it vague and it can take an hour.
The common deal types
- 1
Room hire
The promoter pays a fixed fee for the room, and keeps the ticket money. Simple, low risk for the venue. - 2
Flat fee
The venue pays the artist a fixed amount and keeps the ticket money. The venue carries the risk if it doesn’t sell. - 3
Door split
After agreed costs come off, what’s left is split by an agreed percentage. Everyone does better if it sells, and shares the pain if it doesn’t. - 4
Versus deal
The artist gets a guaranteed fee, or a percentage of the takings after costs, whichever is higher. Common for bigger shows.
What comes off the gross
Start from the gross: every ticket sold, at the price paid. Then take off what’s agreed in advance. In the UK that’s usually VAT on the tickets, music licensing (PRS), ticketing fees, and any agreed show costs: crew, security, marketing, the house costs. What’s left is the net, and that’s what a door split or versus percentage is worked out from. Check your own contract and accountant for the exact rates that apply to you.
Comps and guest list
Agree up front how comps count. Usually they’re left out of the takings but still count towards capacity, so make sure the guest list is closed and counted before you settle.
Settling up on the night
- Agree the deal in writing before the show, including what counts as a cost.
- Have the final ticket numbers from your ticketing company, not an estimate.
- Show your workings: every line from gross to the final figure, on paper.
- Get it signed or agreed by both sides before anyone leaves.