VBS – Lesson 9 Picking & Promoting a Band NOTES

Learning Target Understand which acts perform at stadiums. Understand the logistics of booking large acts. Discuss and analyze the economics of stadium shows.

KEY TERMS Stadium Manager Promoter

Kenny Chesney / Tim McGraw Georgia’s Sanford Stadium Stadium Concerts Paul McCartney Yankee Stadium Brothers of the sun Kenny Chesney / Tim McGraw Paul Brown stadium Luke Bryan Georgia’s Sanford Stadium

Average Seating (US Stadiums) – 20,000 to 80,000 Madison Square Garden New York Knicks (NBA) New York Rangers (NHL) Typical year….hosts about 320 events. Stage Shows Professional Wrestling Bull Riding Dog Shows UCF Awards Shows Political Conventions Concerts

Booking Acts Acts (Bands along with their Management) Promoter Signing acts is a complex process involving three main parties: Acts (Bands along with their Management) Works with promoter and stadium manager to negotiate contract (fees and demands) for the event. Promoter Ensures every detail at every venue is taken care of Parking, Coat Checks, Concessions, Staff, Security, etc. Stadium Manager Manages the stadium and works with promoters to bring profitable event to the stadium.

Booking Acts Booking Philosophy Bigger Venues = More Seats More Seats = More Tickets/Merchandise Sold More Tickets/Merchandise Sold = More Money (Potential Profit) New Booking Philosophy (NBP) Focus on smaller arenas (10,000 to 20,000 capacity) Quicker Sell Out Less Costs Involved Greater Profit Potential NBP causes major issues for stadium owners. Not as many stadium concerts Costs have increased Must get creative with Ticket Sales

Profit Margin No matter the size of the event determining the profit margin beforehand is a must. Profit Margin = (Tickets + Parking + Concessions) – (Promotion + Amenities) Example: The promoter for Luke Bryan wants to book Paul Brown Stadium with the following demands: Promotion Fee = $75,000 Amenities = $20,000 The Stadium Manager has the following profit estimates for such a concert: Net Ticket Sales = $150,000 Parking = $15,000 Concessions = $12,000 Profit Margin = ($150,000 + $15,000 + $12,000) – ($75,000 + $20,000) Profit Margin = $82,000

Generating Revenue In order to generate revenue (money coming) a stadium manager must develop a plan with a specific goal. # of Acts = Total Revenue / Acts Revenue Example: Paul Brown Stadium Manager Katie Blackburn wants to generate $12,000,000 in revenue for the 2014 concert year. She will book various bands from three types of categories; Large Acts – average revenue $175,000 Medium Acts – average revenue $80,000 Small Acts – average revenue $17,500 Assuming the three types of bands play the same number of days during the year, how many act does she need to book to meet her goal of $12,000,000? # of Acts = $12,000,000 / ($175,000 + $80,000 + $17,500) # of Acts = 44 of each type (Large, Medium and Small)

VBS Lesson 9 Reading Quiz Math Quiz SIM Due Wednesday – End of day. Assignment: VBS Lesson 9 Reading Quiz Math Quiz SIM Due Wednesday – End of day. 10