Buyout

A buyout is when cash is given instead of a service or product that would normally be provided. A meal buyout means the promoter gives the tour manager cash instead of providing catering, and all touring personnel eat on their own. A travel buyout means cash instead of provided transportation, so personnel can book their own travel. Production buyouts happen when the artist is self-contained (carries their own sound and lights) and takes cash instead of having the venue provide production.

How buyouts work

Buyout amounts are negotiated during the advance and documented in the deal memo. A typical meal buyout might be $15-$25 per person. Production buyouts can be significant — thousands of dollars depending on what the venue would otherwise provide. The tour manager tracks all buyout payments and reconciles them during settlement.

When buyouts make sense

Meal buyouts work well in cities with good food options near the venue, or when the crew has specific dietary needs that venue catering can't accommodate. They work poorly in the middle of nowhere at 10pm. Production buyouts make sense when the touring act's production is superior to what the venue provides — which is often the case on larger tours.

Buyouts vs. per diems

Buyouts come from the promoter's budget and replace a specific service. Per diems come from the tour's operating budget and are a standing daily allowance regardless of what the promoter provides. A crew member might receive both a buyout (because the promoter isn't providing dinner) and their daily per diem.