Question Details	Asked By	Asked On
Etiquette on Pro Gig	notalenthack	10/29/03
We have been asked to take an established show "on the road" to dinner theater at a B&B. We have 6 actors, stage manager & director; they have the space and the dinner for which they're responsible. We are doing a 60-40 split, 60 going to the venue. Now, these people are friends, and we're not really doing this for the $, more to help them out. I'm interested in what's fair and appropriate, not in what will make us the most. My Q is this: Who pays the royalties? Us, them or split? Thanks!
Answered By		Answered On
voiceguy2000		10/29/03
My instinct would be to deduct the royalties from the gate proceeds before dividing what's left. This has the effect of dividing them 60-40. If you must advance the royalties prior to collecting ticket proceeds, then I would think the question comes down to who is willing and able to advance it against the expected results, and is in a position to bear the risk that ticket proceeds will not cover what is advanced. I do not think it would be inappropriate for the B&B to advance all of it, against your division formula once the results are in. This is because the benefit of the performance is really going to the B&B. How are you valuing the dinner component of the ticket price? This greatly affects the actual split. Related to the point of your question, the B&B presumably is the one that will be advancing the cost of food to the food supplier (unless the food is bought on credit). Are you entitled to share in 40% of the "profit" on the food? How will that be determined? If the B&B is keeping 100% of the food "profit," how are you allocating the total ticket price between food and non-food revenue? (Determining the actual food "profit" may be difficult.) You might have better luck sitting down and doing a pro forma income statement based on a variety of attendance scenarios (10 guests; 25 guests; 50 guests; whatever) and seeing where you break even. Agree on a formula based on these numbers.

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