flynn23 wrote:
] the numbers are pretty acurate, but Steve has even skewed
] things on the brighter side. No one mentioned other expences
] like insurance during the tour, promotions expenses for the
] album or tour, and the inevitable 'petty cash' needed for
] unforseen expenses during the tour (bail, ammo, etc).

The petty cash you speak of is usually referred to as the "Band Fund" in the industry, and Steve alotted $15,000 for that. Most of the costs that don't take a legnthy explination are correct in Steve's break down.

Things to keep in mind... You want to break out all tour related expenses into a seperate sheet, as tours usually generate revenue when all in said and done, and thats most of what the band gets.. Minus a chunk that goes to the record company.

Each tour and each album gets a seperate budget. They are recouped independently. Etc.. Like, if your first album bombed, and you still have not recouped, and your next album comes out and is a smash, your profits from the second album are not necessarly applied to the debt of the first album. Thats all entirely determined by the bands contract, but thats usually the way it works..

The Royality breakdown is non-existant, which matters as you have your circles p's managed by the record label, your circles c's managed by your publishing company (hopefully the band), the performance royalties managed by the PROs, etc, etc.. And Harry Fox somewhere in there trying to audit it all and take a point or two..

Insurance wasn't mentioned.. Taxes weren't mentioned. This was a basic example made to get a point across.

Finance in the record industry isn't exactly a simple thing to easily explain. Thats why schools like MTSU have four semesters worth of classes to teach it..

RE: The Problem With Music