Guarantee

The guarantee is the promoter’s risk. Sold out or 150 tickets, the guaranteed amount is due. That is why it is usually the first number in an offer and the one that moves most in negotiation. A higher guarantee tends to come with a smaller door percentage, a lower one with more upside, through a versus deal or a bonus.

Example

A 600-capacity club pays [Artist A] a €2,500 guarantee. Each ticket brings in €20 after VAT, and the night’s other costs are €3,500. The bar is left out.

At 300 tickets the club breaks even. Below that it loses money and above it the club earns. [Artist A] gets €2,500 either way.

What to watch for

• Net or gross. Say whether the guarantee is plus VAT or includes it (gross and net), and whether it is landed or plus travel.
• Withholding tax. Where fees to foreign artists are taxed at source, as in Germany and Austria, say whether the guarantee is before or after that tax.
• When it is due. It is due when the show happens, or when the promoter cancels under the cancellation terms. The deposit secures it.