Settlement

Settlement is the financial reconciliation that happens after a show, where the tour manager and the promoter (or their representative) sit down and go through the numbers: ticket sales, expenses, agreed-upon fees, and what the artist is owed. It's the business end of every show and one of the most important skills a tour manager can master.

How settlement works

After the box office closes, the promoter rep presents a settlement sheet showing gross ticket revenue, applicable taxes, facility fees, promoter expenses (advertising, production, catering, local crew, etc.), and the artist's guarantee or percentage. The tour manager reviews every line item, confirms the numbers against the deal memo, and identifies any discrepancies. Once both sides agree, the promoter pays out — usually by check or wire, though some tours require a cash advance during the day with the balance wired later.

What tour managers look for

Experienced TMs know where the common problems are: underreported ticket sales, inflated production expenses, missing comp ticket counts, incorrect tax calculations, and expenses that weren't approved in the advance. A meticulous TM catches discrepancies that can add up to thousands of dollars over the course of a tour. This is not a process you rush through, even when it's midnight and the bus is waiting.

After settlement

Once settlement is complete, it's usually forwarded to the booking agent, business manager, management, and sometimes the artist. Support acts usually don't do their own full settlement — most of the time they're just picking up the guarantee that was promised, unless a bonus was involved.

Settlement structures

How the artist gets paid depends on the deal. A flat guarantee means the artist gets a fixed amount regardless of ticket sales. A "versus" deal means the artist gets either the guarantee or a percentage of net revenue, whichever is higher. A door deal splits actual ticket revenue. The settlement confirms which structure applies and does the math.