Live Promotion Case Study

7/30/2019 Live Promotion Case Study

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CASE STUDY

LONDON ASTORIA 2009

“WE ARE SCIENTISTS”

FIGURES COURTESY OF;

TOUR MANAGER; PETER KENT (OASIS, ARCTIC MONKEYS,PRODIGY)

ACCOUNTANT; CC YOUNG AND CO.



WHO MAKES THE DOLLAR

BILL?ENTREPRENEURS - SIMON MORAN (SJM/PROMOTER)

- WE ARE SCIENTISTS (4 PIECE BAND)

COMMISSION -BIG LIFE MANAGEMENT (ARTIST MANAGERS) 20%

- PRIMARY TALENT (BOOKING AGENT ) 10%

FREELANCERS - ARTIST CREW

- PETER KENT (TOUR MANAGER)

SALARIED - VENUE STAFF

- PROMOTER‟S EMPLOYEE‟S

- BOOKING AGENT‟S EMPLOYEE‟S

- ARTIST MANAGER‟S EMPLOYEE‟S



WHAT DOES THE PROMOTER DO?

SPOTS A BUSINESS OPPORTUNITY

NOTICES THE LONDON ASTORIA UNBOOKEDFOR A GIVEN DATE

CREATES A BUSINESS PLAN TO FILL IT ANDMAXIMISE PROFITS



SIMON MORAN‟S (SJM) MATHS….

ASTORIA 2000 CAPACITY

REASONABLE TICKET PRICE = £25

MAXIMUM REVENUE 2000 X £25 = £50000

HE NEEDS AN ACT TO FILL IT SO HE CALLS…



SCOTT THOMAS (ITB) – BOOKING AGENT

REPRESENTS RADIOHEAD, KASABIAN, ANTHONY AND THE JOHNSONS, MANY

OTHERS, AND.. WE ARE SCIENTISTS.



SJM‟S MAXIMUM REVENUE IS £50K

STANDARD DEAL BETWEEN PROMOTER AND

AGENT IS 50:50, SO SJM SAY TO ITB WE‟LL PAY

YOU A GUARANTEED £25K TO BOOK WE ARE

SCIENTISTS

ITB SAY OK, BUT CONTRACTUALLY WE INSIST YOU

SPEND £4500 ON PROMOTION



SJM‟S REVENUE AND

COSTS50 K REVENUE (MAX)

COSTS;

£25K TO ITB TO BOOK THE BAND

£4500 PROMO (XFM RADIO SPOTS, GUARDIAN, Q MAGAZINE PRINT

ADS)

£9000 VENUE HIRE

£4700 CONTRIBUTION TO VENUE STAFF AND SECURITY

= £18200 TOTAL COSTS

ESTIMATED PROFIT =£6800



ITB THE BOOKING AGENT HAVE A GUARANTEED

£25K OFFER FROM SJM

FIRST THING HE DOES?



ITB THE BOOKING AGENT HAVE A GUARANTEED

£25K OFFER FROM SJM


DEDUCTS HIS COMMISSION OF 10%



ITB THE BOOKING AGENT HAVE A GUARANTEED £25KOFFER FROM SJM


DEDUCTS HIS COMMISSION OF 10% = £2500

PHONES BIG LIFE MANAGEMENT SAYS “I‟VE GOT YOU AGUARANTEED £22500 TO PLAY AT THE ASTORIA”. HOW ABOUT IT?

FIRST THING THE MANAGEMENT DOES?



DEDUCTS THEIR COMMISSION.

20% OF £22500 = £4500

PHONES UP PETER KENT, THE

TOUR MANAGER AND SAYS“WE‟VE BEEN OFFERED A DATE

AT THE ASTORIA, FOR A FEE OF

£18000. DRAW UP A BUDGET”



RECAP

SJM (PROMOTER) 2000 PEOPLE X £25 = £50000 (AFTER COSTS

PROFIT OF £6800)

50:50 DEAL WITH ITB (BOOKING AGENT) WHO COMMISSIONS £25K

AT 10% GIVING HIM AN INCOME OF £2500 LEAVING A REMAINING

FEE OF..

£22500 COMMISSIONED AT 20% BY BIG LIFE MANAGEMENTGIVING THEM AN INCOME ON THE SHOW OF £4500 LEAVING A

REMAINDER OF

£18000 WHICH IS PASSED ON TO THE TOUR MANAGER (PETER

KENT) TO DRAW UP A BUDGET.

FIRST THING HE DOES….



PAYS HIMSELF….

TOUR MANAGER 3 DAYS @ £250 PER DAY = £750




SOUND ENGINEER 1 DAY @ £200 PER DAY = £200





MONITOR ENGINEER 1 DAY @ £200 PER DAY = £200






LIGHTING ENGINEER 1 DAY @ £175 PER DAY = £175

STAGE MANAGER 1 DAY @ £225 PER DAY = £225

INSTRUMENT TECHS X 3, 1 DAY@ £200 EACH PER DAY =£600

WARDROBE/STYLING 1 DAY @ £175 PER DAY = £ 175

DRIVER 1 DAY @ £125 PER DAY = £125








INSTRUMENT TECHS X 3, 1 DAY@ £200 EACH PER DAY = £600



ACCOMODATION COSTS = £1750

CATERING = £950

TRANSPORT = £650

EQUIPMENT HIRE = £675

PD‟S 7 PEOPLE £75 PER DAY X 2 DAYS = £1050

FLIGHTS = £2250

INSURANCE = £1750









INSTRUMENT TECHS X 3, 1 DAY@ £200 EACH PER DAY = £600



ACCOMODATION COSTS = £1750

CATERING = £950

TRANSPORT = £650

EQUIPMENT HIRE = £675

PD‟S 7 PEOPLE £75 PER DAY X 2 DAYS = £1050

FLIGHTS = £2250

INSURANCE = £1750

TOTAL COSTS = £11525



BUDGET = £18000

PROJECTED COSTS = £11525

PROJECTED PROFIT = £6475



SO IF THE SHOW

SELLS OUT….



SJM WILL MAKE £6800



SJM WILL MAKE £6800

ITB (BOOKING AGENT) £2500



SJM WILL MAKE £6800 PROFIT


BIG LIFE (MANAGER‟S W.A.S) £4500

THE SINGER FROM „WE ARE SCIENTISTS‟







£1618.75





BIG LIFE (MANAGERS) £4500


£1618.75

(FOUR PEOPLE IN THE BAND £6475 DIVIDED BY FOUR)







£1618.75


OH, AND THEY HAVE TO PAY TAX ON THAT…







£1618.75



BUT WAIT A MINUTE…?







£1618.75




I THOUGHT THE MANAGER AND BOOKING AGENT WERE ON 20% AND 10%OF WHAT THE BAND MADE?







£1618.75




I THOUGHT THE MANAGER AND BOOKING AGENT WERE ON 20% AND 10%

OF WHAT THE BAND MADE?

MANAGER‟S AND AGENTS COMMISSION ON GROSS INCOME, NOT PROFIT.

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Live Promotion Case Study