This Business Of Concert — Promotion And Touring
The promoter takes all expenses off the top. After costs, the remaining profit (net) is split with the artist (e.g., 85% artist / 15% promoter). This is rare for big acts because the artist assumes venue costs.
Next time you scan a $12 beer at an amphitheater, remember—you aren't just buying a drink. You are helping the promoter cover the "nut" so the show can go on. This Business Of Concert Promotion And Touring
The artist receives a guarantee —a fixed sum paid regardless of ticket sales (e.g., $500,000). If ticket sales exceed a certain threshold, the artist also takes a percentage of the back-end (e.g., 90% after recoupment). This protects the artist from a bad night while allowing them to capitalize on a sellout. The promoter takes all expenses off the top