Settlement
The post-show financial accounting process where the promoter and artist's representative reconcile all revenue and expenses to determine final payment — including any backend due above the guarantee.
Definition
A settlement is the process of reconciling all show revenues and costs at the end of a performance to determine the final financial distribution between the promoter and the artist. It is the moment of truth in every show — where the deal structure moves from theoretical to actual, and where any backend payments above the guarantee are calculated and paid.
Settlements typically occur immediately after the show, backstage or in the venue office, with the promoter presenting a settlement sheet to the artist's tour manager or business manager. The sheet itemizes gross ticket revenue, deductible expenses, net revenue after expenses, and the distribution of any profit above the break-even threshold according to the deal split.
In Context
Your deal is $12,000 guarantee versus 85% of net after expenses. Show does 920 tickets at $32 average — $29,440 gross. After the ticketing fee (8%), adjusted gross is $27,085. Deductible expenses — venue rent ($3,500), production ($2,200), marketing ($1,800), security ($900), ASCAP/BMI ($200) — total $8,600. Net after expenses: $18,485. The artist earns 85% of the overage above break-even. With a break-even at $20,600, there's no backend because net didn't reach break-even. Artist gets the $12,000 guarantee. You're out $2,115.
If the numbers had hit the backend threshold, you'd be calculating 85% of the difference and cutting a check — or paying cash, which is still standard in indie promotion — at 1am in a back office.
Why It Matters
The settlement is where deals either close cleanly or unravel into disputes. Promoters who walk into settlement with incomplete documentation — missing receipts, uncounted comps, disputed expenses — put themselves at a disadvantage against experienced tour managers who do this every night of a tour and know exactly what's contestable.
Every line item on a settlement sheet is potentially negotiable or disputed. Marketing expenses get challenged if they're not specifically allowed in the contract. Comp tickets affect gross attendance counts. Venue fees need to match what was in the deal memo. Sloppy settlement prep costs money and damages relationships that matter for future bookings.
Related Terms
The fixed minimum payment an artist receives for a performance, regardless of ticket sales — the core financial commitment a promoter makes when contracting a show.
A deal structure where the artist is paid a percentage of net door revenue rather than a fixed guarantee — shifting financial risk from the promoter to a shared outcome tied to actual ticket sales.
The point at which a show's ticket revenue exactly covers all costs — the guarantee, venue expenses, production, and marketing — below which the promoter loses money.
Complimentary tickets provided at no charge to industry guests, media, artist guests, and venue staff — representing capacity consumed without generating revenue, which affects both economics and settlement accounting.
The gross revenue a show generates from ticket sales at the door on the day of the event — as opposed to presale revenue captured in advance.
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