Tour Settlement
Post-show accounting reconciling actual expenses against guaranteed fees.
Definition
Tour settlement is the financial reconciliation process following each performance where actual box office results, expenses, and contractual terms are calculated to determine final artist payment. Settlements occur the night of the show or within days, with documentation supporting all figures.
Settlement structures vary: flat guarantees pay regardless of ticket sales, versus deals split profits after promoter expenses. Most mid-level artists work guarantee-plus-percentage deals protecting minimum income while participating in upside.
Why It Matters
Settlement skills directly impact artist income. Tour managers who understand contract terms, expense categories, and common promoter tactics capture significantly more money than those who simply accept presented figures.
Detailed settlement documentation also helps with tour analysis, informing routing decisions and deal negotiations for future tours.
Examples in Practice
A tour manager catches a $5,000 error in the settlement when the promoter double-charges production expenses that were included in the venue rental.
An arena show settles at $150,000 against an $80,000 guarantee, demonstrating strong ticket sales and validating the artist's demand in that market.
After reviewing settlements from twenty dates, management identifies three markets where expense ratios suggest promoter padding, informing renegotiation of future routing.