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Concerts are set up by a promoter. The promoter contracts with
a booking agent who supplies the artist or band. The fee paid
to the performer(s) is usually a set fee based on the popularity
or drawing potential of the act. This fee may run as high as 80
to 90 percent of the gross for a superstar.
The promoter also locates a venue and negotiates a contract
which defines the rental fee of the facility with the venue manager.
This fee is usually a minimum flat fee or a percentage of the
gross box office and parking if the percentage figure exceeds
the stated minimum, e.g., a predetermined (pre-estimated) flat
fee minimum dollar amount equal to 17 percent of the estimated
gross, or 17 percent of the actual gross, whichever is greater.
The promoter usually pays the venue manager half of the minimum
up front and the remaining amount before the performance takes
place.
The promoter also secures the permits and insurance and pays the fees for…
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