thedooner
A Grimace Not A Smile (100+)
Offline
Que sera sera, whatever will be will be.
Posts: 126
Ireland
Gender: 
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Tour expense [5 weeks]: $ 50,875
Bus: $ 25,000
Crew [3]: $ 7,500
Food and per diems: $ 7,875
Fuel: $ 3,000
Consumable supplies: $ 3,500
Wardrobe: $ 1,000
Promotion: $ 3,000
Tour gross income: $ 50,000
^^^^^^^^^^^^^^^^^ ^^^^^^
Agent's cut: $ 7,500
Manager's cut: $ 7,500
Merchandising advance: $ 20,000
^^^^^^^^^^^^^^^^^^^^^ ^^^^^^
Manager's cut: $ 3,000
Lawyer's fee: $ 1,000
Publishing advance: $ 20,000
^^^^^^^^^^^^^^^^^^ ^^^^^^
Manager's cut: $ 3,000
Lawyer's fee: $ 1,000
Record sales: 250,000 @ $12 = $3,000,000
Gross retail revenue Royalty
[13% of 90% of retail]: $ 351,000
Less advance: $ 250,000
Producer's points
[3% less $50,000 advance]: $ 40,000
Promotional budget: $ 25,000
Recoupable buyout from previous label: $ 50,000
Net royalty: $ -14,000
^^^^^^^^^^^ ^^^^^^
Record company income:
Record wholesale price
$6.50 x 250,000 = $1,625,000 gross income
Artist Royalties: $ 351,000
Deficit from royalties: $ 14,000
Manufacturing, packaging and
distribution @ $2.20 per record: $ 550,000
Gross profit: $ 7l0,000
The Balance Sheet: This is how much each player
got paid at the end of the game.
Record company: $ 710,000
Producer: $ 90,000
Manager: $ 51,000
Studio: $ 52,500
Previous label: $ 50,000
Agent: $ 7,500
Lawyer: $ 12,000
Band member net income each: $ 4,031.25
The band is now 1/4 of the way through its contract, has made the music industry more than 3 million dollars richer, but is in the hole $14,000 on royalties. The band members have each earned about 1/3 as much as they would working at a 7-11, but they got to ride in a tour bus for a month.
The next album will be about the same, except that the record company will insist they spend more time and money on it. Since the previous one never "recouped," the band will have no leverage, and will oblige.
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