^{How ro solve it:}Start with the Basics: Guarantee: $155,000 Support Talent $14,000 Tickets: $30 Capacity: 15,000 (3 shows) Maintenance Fee: $4/Ticket Tax: 8%

1) Figure Adjusted Gross Potential (net gross potential) = ((Capacity-Comps) x Ticket Price Maintenance Fees) / 1.08 Capacity (15,000) comps (750) = 14,250 x Ticket Price ($30) = $427,500 maintenance fees ($4 x 14,250 tickets = $57,000) = $370,500 / 1.08 = $343,055.56 (AGP)

2. Split Point = AGP then subtract Variable and Fixed Expenses $343,055.56 - $103,952.49 = $239,103.07 subtract support talent $14,000 = $225,103.06 3. Figure Artists Share (split) 85% x $225,103.06 = $191,337.60 4. Is Guarantee Greater than Split? Artist gets greater. 5. Figure Promoters Share = % x split point 15% x $225,103.06 = $33,765.46

Assume the following scenario: Your hall seats 3,000. Ticket prices are $28. You sell 2701 seats. The tax is 8%. Assume a guarantee of $30,000 to the headliner and other expenses of $25,000. Figure the following deals:

a) Guarantee with promoter profit of 15% PLUS an 85/15 split. Promoter makes _____________________. Artist makes _________________________________.

b) Guarantee PLUS an 80/20 split. Promoter makes _______________________. Artist makes ___________________________________.

c) Percentage of the Adjusted Gross (60%). This is a DOOR DEAL. /Club

Promoter makes _______________________ Artist makes ___________________________________

d) Guarantee versus Percentage of the NET (60%) This is a VERSUS deal. What does NET mean? _____________

Promoter makes ________________________ Artist makes ___________________________________