Q & A
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Concert
Promotion Basics Artists and Aspiring Talent Buyers Should Know: Deposit,
Radius clause, Force majuere, Transportation, Settlement, What Happens When
a Show is Canceled, and Why Artists, Agents, and Managers Won’t Work with
Promoters they Don’t Know
Specific Contract
Points and How the Artist Gets Paid
Radius clause
A radius clause is usually in the artist’s and promoters’ best
interests, because it helps create higher ticket sales at large venues.
In most cases, a radius clause applies to public performances only, leaving
the artist free to perform corporate or private shows, since they don’t
impact ticket sales.
Most radius clauses range from 50 miles (for a regional-level artist) to
100-150 miles for a major artist. The distance of a radius clause depends on
the size of the market city, size of the venue, size of the territory
covered by a certain promoter, and the popularity of the artist: The bigger
the artist and venue, the larger the radius clause. Economic conditions in
the area and the current state of the live concert business play a role,
too.
A guideline for setting the radius clause? The distance you can reasonably
expect an average concert goer--not a mega-fan--to drive to see that
artist’s show for an evening out.
The radius clause also states the length of time it’s in effect: 60 or 90
days on each side of the date is common for a major artist. The wording for
a radius clause is usually something like, “Artist agrees not to perform
within a 150-mile radius for a period of 60 days before and after this
engagement.”
Contract provisions:
Most artists earning the 30K guarantee (fee) you mentioned will be
represented by a reputable talent agency, and the contract provisions you
mention are covered in the performance agreement issued by the artist’s
talent agency on behalf of the artist. Most artists at this level use the
AFM performance agreement, with specific deal points added in. (Promoters
make offers, but the artist’s talent agency issues the contract and
sends them out to the promoter on behalf of the artist—not the other way
around. For local-level, non-union club artists, the club often issues
contracts…a tradition mainly borne of artists in the past not knowing any
better and being too intimidated to speak up.)
Transportation:
For artists earning the 30K guarantee you mentioned, the promoter is often
responsible for providing transportation costs for the artist, plus ground
transportation between the venue, hotel, etc. .The artist’s agent will have
information on the artist’s transportation needs. At this level, sometimes
the purchaser provides the hotel, sometimes not--again, the artist’s agent
will have information on the artist’s requirements. Shore power for the bus
is usually provided, especially if the promoter isn’t providing the hotel.
(In past decades, some promoters or venues owned a house where performers
stayed, but high real estate prices have virtually eliminated this.)
Cancellation:
Most performance agreements state that the show is “rain or shine” and have
a force majeure clause that protect artist and promoter from
penalty in the event the show must be cancelled due to things like war,
natural disasters, “and other acts of God.” The insurance policy you take
out for the show will have cancellation contingencies and clauses as well.
Specifics of what happens in the event of a cancellation are usually spelled
out in the artist’s Rider, but because the artist still has to pay touring
costs and the show is insured by the promoter, what usually happens is, the
artist keeps the deposit either way, and if the show is rescheduled, applies
the deposit toward the makeup date. In my experience, shows cancelled due to
weather are usually amicably rescheduled (often with the date often being
made up toward the end of the tour) because no one wants to disappoint the
audience.
Cancellations due to transportation problems caused by weather conditions en
route to a fair-weathered city may be covered under force majeure,
but most artists hate canceling and tend to make superhuman efforts to get
to the show…often utilizing contacts of the artist, agent, management team,
and promoter in every town along the way! Idle equipment and crew are
expensive on the road, and the artist needs that show to eat and pay touring
expenses, so everyone does their best to help get them there.
If an artist has to cancel due to illness, a doctor’s examination and note
are usually required by the promoter. Again, the terms for cancellation are
usually in the artist’s Rider, and you should know what’s covered under the
insurance policy you obtain for the show.
In my experience, at this fee level cancellations are fairly rare, and the
artist is usually begging the manager to let him do the show because he
doesn’t want to disappoint the audience. As with force majeure
cancellations, shows cancelled due to illness are often amicably
rescheduled, with the date being made up at the end of the tour.
Payment of artist:
The typical payment arrangement required by most talent agencies (and
strongly suggested by the AFM) is a 50% non-refundable deposit sent to the
artist’s talent agency, no later than 30 days before show day, with the
remainder payable to the artist on the day of the show.
Large talent agencies usually require the deposit be due immediately with
the signed contract, especially in the case of promoters who are relatively
new to the business.
For national level artists who get the 30K fee you mentioned, the artist is
paid the remaining 50% prior to going onstage. (This clause in AFM contracts
usually reads, “…to be paid to leader prior to performance on night of above
engagement or ACT WILL NOT PERFORM.”)
Overages such as merchandise splits, etc. are settled after the show, during
the process called (of course) Settlement.
Again, all this is outlined in the artist’s performance agreement (contract)
issued by a reputable talent agency.
Hope that helps!
Randi Reed
Editor-in-Chief / Founder
MusicBizAdvice.com
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