A recent report sheds light on the intricate financial dynamics of concert ticket sales, revealing just how much (or how little) bands receive from the tickets they sell.

Understanding the Flow of Money After Purchasing a Concert Ticket

In a recent article, CBS News addressed the ongoing issue of rising concert ticket prices. Rather than focusing on the frustrations of music fans, the report delved into the financial breakdown of how ticket sales impact various stakeholders after a purchase is made.

To illustrate the distribution of funds, CBS collaborated with Andrew McMahon from the band Something Corporate, who provided insights into the revenue generated from a $70 concert ticket.

For this specific event, Something Corporate set their ticket price at $56. However, this figure does not reflect the total cost for the ticket buyer, as additional service fees are typically added by ticketing platforms.

Based on this ticket price and the chosen venue, McMahon informed CBS that the concert has the potential to yield around $200,000 in gross revenue. However, specifics regarding the venue were kept confidential by CBS for privacy reasons.

This earnings figure may seem promising, but it does not account for various venue-related expenses, which encompass costs such as advertising and catering services.

According to McMahon’s breakdown, nearly $40,000 is deducted from the total for stagehands alone. Furthermore, the band’s overall expenses just tied to the venue amount to close to $104,000.

After these deductions, the band is left with approximately $100,000, which they must then distribute to cover their own operating costs and expenses.

Calculating the Profit per Ticket for Something Corporate

McMahon did not merely stop at detailing the venue costs in the CBS report. He further explained how the remaining $100,000 allocated for the band is divided among various expenses.

Included in these deductions are commissions, service fees, and payroll obligations that significantly impact the band’s take-home pay.

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“In addition, the management team claims a quarter of the earnings. Travel and crew expenses consume another quarter,” notes the CBS reporter.

When factoring in all the costs associated with the show, including band expenses and fees that do not benefit the band directly, CBS concluded that Something Corporate earns an approximate profit of just $10 from each ticket sold.

While this profit margin may not sufficiently justify the soaring ticket prices, it certainly provides clarity about the allocation of funds within the concert industry.