Because that's how major concerts work
Venue
Before anything happens on a tour, the venues have to be selected and confirmed. Doing that takes money. Most venues are paid up front, and they get paid whether the concert is successful or not. The average cost to rent an arena is around $20,000/night while the average cost to rent an amphitheater is around $10,000/night. Smaller clubs cost less, but their capacity is also less.
Promoter
The promoter takes a chunk of the ticket money, as they spend a lot up front. They also help determine the price of the tickets and how pricing will be structured. There are advertising costs that need to be compensated. Promoters have to recoup the cost of tour expenses, venue rentals, and anything else that may have been shelled out up front. They also take a nominal (or in some cases, not so nominal) fee for their services, ranging anywhere from 3% - 10% of the ticket cost.
Management
Every great band has a manager or a management company. They have to. Someone has to take care of the many affairs involved with a tour. From booking a hotel room, to checking the contract riders, to scheduling the tour bus, rides to and from the venue, and making sure the band has clean clothes, managers do a lot. And a good manager is worth his/her weight in ticket proceeds. The average manager takes between 10% - 15% of the ticket sales. Most of them earn it.
Road Crew
These guys work their asses off for the band and usually receive small wages in comparison to the amount of work that they do. Everything from lugging the equipment, to checking the guitars, drums, and microphones, to setting up the stage…it’s all covered by the road crew. Affectionately known as roadies, these men and women are the backbone of any touring band. The road crew is the gang that makes it all happen. While the band is responsible for providing the magic on stage, the roadies cover every little nuance to ensure that the band has all the tools they need to perform.
House Lights and Sound
These days, most shows, even the ones at small intimate venues, have a great light show. From different colored lights flooding the stage, to the house lights that reveal the audience, they are all operated by lighting masters. Sound engineers make sure that the band is hooked up to their speakers and on stage monitors. They verify that the sound is excellent and they stand in front of the soundboard for the entire concert, making constant small adjustments and improvements to ensure there is no feedback or change in sound quality. If the band sounds impeccable, it’s almost always due to the sound engineers who work the board.
Hotels
Even if you are in the world’s biggest band, hotels aren’t free. While some bands sleep on the tour bus, most bands prefer to stay in a hotel with some minor luxuries and a bed. Hotels in certain cities cost a lot of money, and it’s the band that has to pay for this. From the road crew to the assistants and everyone in between, hotels are needed and require cash.
Hospitality
Have you ever been backstage after a concert? If so, you may have noticed the nice spread of food that’s available to the band and crew after a show. This is all provided by a hospitality service. They take care of the menu, setting up the food, and making sure that there is a large variety of eats for the band to enjoy.
Transportation
From the tour bus to the big rigs that carry the equipment and the stage, transportation from city to city and town to town where the band is performing is required. Gas is extremely expensive these days, and the large vehicles use a lot of it. Some bands even fly from show to show on planes. That cost adds up and it’s all paid for out of the ticket sales money. As you can see, there are a lot of people other than the performers required to produce a concert.
The next time you see astronomical ticket prices, take a moment to think about where all this money goes. Why that doesn’t justify the insane prices (like $250 to sit on the floor), it does help explain where the money goes. Not all of it goes to the band or the concert promoter. A lot of it goes to the everyday men and women that are working hard to make sure you are entertained for the evening.
The Rock and Roll Guru: The Price Of A Concert: Breaking Down Where The Money Goes
