| Advance: | $ 250,000 |
| Manager's cut: | $ 37,500 |
| Legal fees: | $ 10,000 |
| Recording budget: | $ 150,000 |
| Producer's advance: | $ 50,000 |
| Studio fee: | $ 52,500 |
| Drum amp, mic and phase "doctors": | $ 3,000 |
| Recording tape: | $ 8,000 |
| Equipment rental: | $ 5,000 |
| Cartage and transportation: | $ 5,000 |
| Lodgings while in studio: | $ 10,000 |
| Catering: | $ 3,000 |
| Mastering: | $ 10,000 |
| Tape copies, reference cds, shipping tapes, misc. expenses: | $ 2,000 |
| Video budget: | $ 30,000 |
| Cameras: | $ 8,000 |
| Crew: | $ 5,000 |
| Processing and transfers: | $ 3,000 |
| Off-line: | $ 2,000 |
| On-line editing: | $ 3,000 |
| Catering: | $ 1,000 |
| Stage and construction: | $ 3,000 |
| Copies, couriers, transportation: | $ 2,000 |
| Director's fee: | $ 3,000 |
| Album artwork: | $ 5,000 |
| Promotional photo shoot and duplication: | $ 2,000 |
| Band fund: | $ 15,000 |
| New fancy professional drum kit: | $ 5,000 |
| New fancy professional guitars [2]: | $ 3,000 |
| New fancy professional guitar amp rigs [2]: | $ 4,000 |
| New fancy potato-shaped bass guitar: | $ 1,000 |
| New fancy rack of lights bass amp: | $ 1,000 |
| Rehearsal space rental: | $ 500 |
| Big blowout party for their friends: | $ 500 |
| Tour expense [5 weeks]: | $ 50,875 |
| Bus: | $ 25,000 |
| Crew [3]: | $ 7,500 |
| Food and per diems: | $ 7,875 |
| Fuel: | $ 3,000 |
| Consumable supplies: | $ 3,500 |
| Wardrobe: | $ 1,000 |
| Promotion: | $ 3,000 |
| Tour gross income: | $ 50,000 |
| Agent's cut: | $ 7,500 |
| Manager's cut: | $ 7,500 |
| Merchandising advance: | $ 20,000 |
| Manager's cut: | $ 3,000 |
| lawyer's fee: | $ 1,000 |
| Publishing advance: | $ 20,000 |
| Manager's cut: | $ 3,000 |
| Lawyer's fee: | $ 1,000 |
| Record sales: | 250,000 @ $12 $3,000,000 |
| Gross retail revenue royalty: | [13% of 90% of retail]: $ 351,000 |
| less advance: | $ 250,000 |
| Producer's points: | [3% less $50,000 advance]: $ 40,000 |
| Promotional budget: | $ 25,000 |
| Recoupable buyout from previous label: | $ 50,000 |
| Net royalty: | $ -14,000 |
|
Record company income: |
|
| Record wholesale price: | $6.50 x 250,000 = $1,625,000 gross income |
| Artist royalties: | $ 351,000 |
| Deficit from royalties: | $ 14,000 |
| Manufacturing, packaging and distribution: | @ $2.20 per record: $ 550,000 |
| Gross profit: | $ 7l0,000 |
|
The balance sheet: This is how much each player got paid at the end of the game. |
|
| Record company: | $ 710,000 |
| Producer: | $ 90,000 |
| Manager: | $ 51,000 |
| studio: | $ 52,500 |
| Previous label: | $ 50,000 |
| agent: | $ 7,500 |
| Lawyer: | $ 12,000 |
| Band member net income each: | $ 4,031.25 |
The band is now 1/4 of the way through its contract, has made the music industry more than 3 million dollars richer, but is in the hole $14,000 on royalties. The band members have each earned about 1/3 as much as they would working at a 7-11, but they got to ride in a tour bus for a month. The next album will be about the same, except that the record company will insist they spend more time and money on it.
Since the previous one never "recouped," the band will have no leverage, and will oblige. The next tour will be about the same, except the merchandising advance will have already been paid, and the band, strangely enough, won't have earned any royalties from their T-shirts yet. Maybe the T-shirt guys have figured out how to count money like record company guys. Some of your friends are probably already this fucked.