Embedded below is an example of a contract for a concert. The booking agent issues the contract between the artist and the promoter. This contract sets out the terms under which the artist agrees to perform and lists any special technical or production stipulations specific to that concert.

This is an example; contracts for concerts take many forms and are specific to one concert. A contract should, at the very least, contain the points and clauses discussed in the following sections. With most contemporary music concerts, everything runs smoothly, and the issuing of a contract is a formality, but a formality that is strictly adhered to.

Always Seek Advice from a Legally Qualified Person!

This post summarises the process for issuing contracts for live performance. I encourage you to always consult with a qualified lawyer when drafting or managing any legal documents, including live performance contracts.

Take time to study the contract above, and explanations of the various clauses follow on here.

Date of Agreement

“An Agreement between x and y”—who is the agreement between? All parties involved need to be named for the contract terms to be applied. The contract usually refers to the promoter as “the promoter,” “the purchaser,” or “the buyer.” The artist or artist manager will be referred to as “the producer,” “the artist,” or “the management.” In this case, P. Romoter is the promoter/purchaser, and Mr. Ron Decline is the manager who signs this contract on behalf of his client, the band called Bum Gravy. It is very rare for the agent to be named as a contracting party. The agent acts to bring the two contractors together and is not involved in the financial transaction.

Description of Services Supplied

Who is performing and under what name? It may be obvious that Bum Gravy is the band performing, but many solo performers play under different names. DJs have pseudonyms and also perform under their real names. For instance, Soulwax (a Belgian rock band) also perform as 2 Many DJs (a hip DJ team). Soulwax/2 Many DJs regularly perform in both incarnations at festivals and will probably issue separate contracts.

Where and When Will the Concert Take Place?

This is the venue, street address, and show date. This should be obvious, I know, but I have seen more than one contract issued with the wrong show date!

The Ticket Price

This is the price of the ticket set by the promoter after discussion with the music artist and their booking agent. The promoter would base their suggestion for the price ticket based on their show costs – renting the venue, marketing costs, and paying staff, for instance. The costs in this example are £700.00.

Setting the ticket price is a balancing act. Charge too much for the tickets and you will deter your prospective audience; charge too little and neither artist nor promoter will make any money!

Payment

This section sets out the performance salary or fee (the amount the artist will earn). It also sets out any schedules and stipulations concerning the payment of the fee.

In our example, the fee is £1000 ‘vs 80% of door receipts after costs of £700’. (To keep things simple, I have not included any sales tax. In the UK, for instance, there is a sales tax called VAT, which is added on to all goods and services – including the fees charged by musicians. I have not included such tax here. )

The fee should be “net and free of all local taxes” (see clause 2d). All countries (with the odd exception) levy income taxation on their visiting workers, and music groups are no different. The government in each country can therefore tax any income from concert performances. Most countries also require promoters to deduct taxation from the fee at the source and it cannot be paid later.

The deposit

Clause 2a Stipulates the payment of a deposit and this is standard practice. Booking agents will collect deposits on their client’s behalf; the money is held in “client accounts” and paid out to the artist on request.

The sending of a deposit is used as a contractual milestone—failure to pay the deposit means the music artist can cancel the concert. This schedule specifies the date by which the deposit must be received. The contract in the example states the deposit is due ‘on receipt of contract’. So the promoter is going to have to pay 50% of the fee at the time they sign the contract, which could be many months before the concert date.

Clause 2c stipulates the rest of the fee should be paid in cash. This was the normal way of doing things before the pandemic; collecting cash was less risky than accepting a certified check (or cheque, depending on where you live). Concerns about transmissible diseases and safety in general means that most fees are paid by bank transfer – both deposit and the remainder of the fee.

Clause 2b also states that, in the event that the promoter cancels the concert, the artist keeps the deposit. Obviously, a promoter will only cancel a concert as a very last resort and would attempt to reschedule the concert as soon as possible. In that case, a scrupulous agent would keep the deposit in the client account until the concert was rescheduled.

Guarantee vs percentage deal

The contract in the example states the artist will receive ‘£1000 vs 80% of door receipts after costs of £700’. What does this mean?

The live music business likes guarantees for concert deals – flat fees, agreed up front. Guarantees make budgeting easier because the income from the tour is guaranteed. Promoters calculate guarantees by considering the gross potential and their costs.

Gross potential

The gross potential is the ticket price multiplied by the capacity of the venue.

Ticket price x capacity = gross potential

With the Bum Gravy concert, this would work out like:

£10 x 200 = £2000.00

There is £2000.00 to be made and split between the promoter and the artist – if the show sells out.

Promoters costs

These are the various costs the promoter has for staging the concert – venue hire, sound, and light equipment rental, staff, marketing, contract rider costs, opening acts, etc. The promoter, in this case, has showed they have costs of £700.00.

The calculation

Assuming the concert sells out, there will be £2000.00 in ticket sales (‘gross box office receipts’ or GBOR). The promoter has costs, though (£700.00) so

£2000 – £700 = £1300.00

to share between Bum Gravy and the promoter. An 80/20 split would give the artist £1040, and the promoter £260.00.

As a guaranteed is preferred (and also because the concert is unlikely to sell out) the promoter has promised the artist £1000.00. The promoter would pay £500.00 upfront as a deposit, and then £500.00 on the night, regardless of how many tickets are sold. However, if all 200 tickets were sold, then the artist would pick up an extra £40 on top of the £1000.

Clause 3) ‘Sound and lights + catering’

‘Sound and lights and catering (SLC)’ is a standard term in contemporary music concert contracts. The ‘sound and lights’ refers to the audio and lighting equipment needed and the venue may have these in-house, or they may have to be rented in for the event. ‘Catering’ is a cost, decided by the promoter, to cover feeding the artist and crew, as well as supplying the food and drink specified by the artist in the contract rider.

Description of Special Stipulations

Are there any time-specific or financial considerations to this engagement? In this example, it is stipulated that the logo of the band is not to be used in advertising or sponsorship without the artist’s permission. Obviously, the promoter will promote the concert and will use the band’s name and logo in all advertising. However, unscrupulous promoters and club owners may then also use the act’s name to promote other events, such as after-show parties or radio appearances, from which the act themselves will receive no income. It is a common occurrence for clubs near major concert venues to advertise an after-show event, such as “the official Bum Gravy after-show party! Half-price entry with your concert ticket!” Audience members are tricked into going to the club, in the mistaken belief that they will see the band socialising. In reality, the band will be on a sleeper bus and travelling overnight to the next concert.

It is difficult to police this kind of exploitation, but a contract clause that highlights this issue and refers to the penalties involved will hopefully prevent the promoter of the concert from organising an event without the band’s permission and using the band’s name and logo to make them extra cash.

Merchandise

Clause 5) is about the artist’s right to sell merchandise without having to pay the venue or promoter commission on those sales. Venues and operators will charge a service fee on merchandise sold on the premises, taking up to 25 per cent of gross merch sales. This situation is changing, with many venues not charging music artist to sell t-shirts etc.

Agreement to the contract

The promoter/buyer should study the contract carefully and sign and date it to signal his or her acceptance of the terms. By signing the contract, the promoter is saying, “Yes, I agree to provide all the conditions necessary for the performance of X on such date at such time for such amount of money.”

If the promoter doesn’t like something or disagrees with the terms, they can either contact the agent to renegotiate, or simply put a red line through the relevant clause and return the contract. This red line signals the promoter’s refusal to comply with that section of the contract. A good agent would then, on receiving any amended contract, try to renegotiate the deal and get the promoter to accept all terms unconditionally.

When a contract is signed, dated, and returned to the agent, the agent should pass copies on to the manager or artist and to the artist’s tour manager. The artists concert tour manager should have the contracts with them on the tour, and refer to each one during the ‘settlement’ – the process of counting tickets and agreeing the final fee.

Should you have a contract for every concert?

Should you have a contract for every concert you do as a performer? Yes! As well as being a legally binding document in case of dispute, the contract also serves as a tool that enables promoters to forewarn you/the touring party of special circumstances at any venue. For instance, a well thought-out contract should at least try to state the date and time the promoter wants you to perform. I mention this because I once had a situation where the promoter told me that the artist’s performance time was scheduled for 2:30 a.m. the day after the date the booking agent gave me. This information was not in the contract, and it was only when I called up to check on technical information that I learnt this.

Will you get a contract for every concert you do? Probably not, especially when you are just starting out. You should try to set things out on paper/screen though. Even if you just issue a page that says, “You, Mrs. Bar Manager, agree to pay me in CASH the fee of $x when I perform in your bar on the xxth of x. Sign here,” you will protect yourself from potential nonpayment problems.

End

You’ve read through my take on the contract for a concert. The information is based on my experience, and I hope you found it useful. Please leave a comment with your thoughts, observations, or queries.

Please also read my book, The Live Music Business – Management and Production of Concerts and Festivals to find out more.