What is a Settlement in Live Music?

A settlement (also called settling the show) is the end-of-night meeting where the promoter and the artist's tour manager go through ticket income and show costs and agree exactly what the artist is paid. It usually happens in the production office during or just after the headliner's set, using a settlement sheet prepared by the promoter or venue.

How a settlement works

A settlement follows the same steps every night:

  1. Count the tickets: confirm tickets sold, comps issued and the gross ticket income.
  2. Take off deductions: remove VAT, ticketing fees and any other agreed deductions to reach net income.
  3. Check the costs: go through the show expenses against the budget in the offer, with receipts.
  4. Apply the deal: work out the artist's fee under the agreed deal, such as a guarantee, door deal or versus deal.
  5. Sign and pay: both sides sign the sheet, any deposit already paid is deducted, and the balance is paid.

Accurate settlements depend on clean figures for fees and costs, which venues and promoters keep in one place with invoices in Crescat.

Example settlement

This is a simplified example of a versus deal of £1,000 against 70% of net after costs:

  • Tickets sold: 400 at £15 = £6,000 gross
  • Less VAT at 20%: £1,000, leaving £5,000
  • Less agreed show costs: £2,500, leaving £2,500
  • 70% of £2,500 = £1,750, which beats the £1,000 guarantee
  • Artist fee: £1,750, less a £500 deposit already paid = £1,250 due tonight

Settlement vs invoice

An invoice is a bill for a fixed amount. A settlement works out the amount itself, based on what actually happened on the night. Many artists still send an invoice afterwards to match the agreed settlement.

Frequently asked questions

Who does the settlement?

The promoter or their representative and the artist's tour manager. At venue-promoted shows, a venue manager or box office manager often prepares the sheet.

Do flat-fee shows need a settlement?

Usually a short one, to confirm the fee, deposit, buyouts and any extras. The detailed version matters most when the artist's pay depends on ticket sales.

What happens if the figures are disputed?

Both sides check the ticket reports and receipts. Unresolved items are noted on the sheet and settled later through the agent.

Related terms