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Cost to produce Madonna Concert?


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U2 360 cost $700k per show. That was a number in some article a few yrs back

Really? Oh well then close to million would be probable I suppose... Is it a fact, that U2 number?
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Guest Rachelle of London

Well we heard from the horses mouth that the Olympia show cost nearly a million to produce so the full sized show must cost a bit more. $1m is probably not that far off.

In regards to hiring out the arena doesnt M get discount as her shows make so much money for the arena in terms of parking costs, refreshments, Merch stands etc

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The Michael Jackson contract that he did for those concerts before he died is available on the internet. (It became available when his family sued AEG in court). I read it once and it was really complicated to understand and had a lot of quantitative clauses. but I suppose it would be typical of most arena tours for big artists. Ill try to dig it up..

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Well we heard from the horses mouth that the Olympia show cost nearly a million to produce so the full sized show must cost a bit more. $1m is probably not that far off.

In regards to hiring out the arena doesnt M get discount as her shows make so much money for the arena in terms of parking costs, refreshments, Merch stands etc

And this is what I tell people who are shocked when they learn about the price-tag attached to a Madonna show.

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I would imagine Madonna wouldn't get much change from a 100 million dollars, when all said and done. Madonna insists on perfection for her tours and that doesn't come cheap. She gets the best in the business, from her dancers to musicians,and as a result she will have to pay top dollar.

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The last two shows I saw, interestingly, were U2 and Madonna (Live Nation and Guy O connection) and both shows had long catwalks that I generally don't see in concerts. I've always wondered how costly these are and how much more they add to the cost of the overall show. I'm glad Madonna continues to use catwalks in her shows. I remember the Girlie Show catwalk was a big thing when she toured that show and it was nowhere near as big as the RH catwalk.

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Whenever I watch eurovision I am shocked at how great the stage is. Surely she could rent that stage hahaha

Yea but the eurovision stage is just for one place

Remember her stages have to be able yo move around easily around the workd

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Everyone should take all the numbers we see with a grain of salt. Other than the accountants and others directly involved in the process, no one really knows. That means the press reports could be relying on sources who aren't as well-informed as they think they are and her own PR.

The two numbers that I've seen most consistently are the rumored $1m / show production costs and M's own $1m / show minimum fee guarantee. So, for the MDNA Tour (88 shows), that's at least $176 million of the tour's $305 million gross -- leaving $129m unaccounted and profit.

I have never seen any numbers regarding advertising and promotional costs of M's shows -- which are never included in production costs in the entertainment industry, and probably something we'll never know (promotional costs are a desperately guarded secret in the entertainment industry) -- and we don't know what percentage of the total profit M's contract guarantees her to, though I'd guess it's in the 25 - 30 percent range since that's a number I've seen associated with other legacy acts.

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I can't imagine promotional costs being that high for M, specifically outside the US. Whenever she tours foreign countries the main news media publicizes it extensively, giving her free press. This was especially true in S&S when she went to new countries and it was an 'event'. I assume this is what's happening in Asia too.

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Everyone should take all the numbers we see with a grain of salt. Other than the accountants and others directly involved in the process, no one really knows. That means the press reports could be relying on sources who aren't as well-informed as they think they are and her own PR.

The two numbers that I've seen most consistently are the rumored $1m / show production costs and M's own $1m / show minimum fee guarantee. So, for the MDNA Tour (88 shows), that's at least $176 million of the tour's $305 million gross -- leaving $129m unaccounted and profit.

I have never seen any numbers regarding advertising and promotional costs of M's shows -- which are never included in production costs in the entertainment industry, and probably something we'll never know (promotional costs are a desperately guarded secret in the entertainment industry) -- and we don't know what percentage of the total profit M's contract guarantees her to, though I'd guess it's in the 25 - 30 percent range since that's a number I've seen associated with other legacy acts.

What we know is that she gets 90% of the revenue from the ticket sales. A number so high that I assume she is producing the whole show on her own. Considering she has the financial resoures and a vast business experience the risks seem relatively low for everyone involved. And I don't see why she should share any profits at this point.

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What we know is that she gets 90% of the revenue from the ticket sales. A number so high that I assume she is producing the whole show on her own. Considering she has the financial resoures and a vast business experience the risks seem relatively low for everyone involved. And I don't see why she should share any profits at this point.

Madonna does not bring home 90 percent of ticket revenue. That's not financially possible.

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Madonna does not bring home 90 percent of ticket revenue. That's not financially possible.

I think to remember that it has been reported that her contract with LN says that she gets 90% of the revenue from ticket sales and LN gets the other 10%. And why not? If she is the sole producer (financially) of the show, sure she gets the biggest chunk. But this is just the revenue side of it all. We don't know about the costs and therefore don't know about the profit that is generated. Based on ticket sales only. Merchandise is a whole different matter. This is even more tricky since those revenues are never reported and we certainly don't know what the costs for printing a tour book or producing a coffee mug or t-shirt are. I'd assume it's highly profitable. From what I remember this is split 50/50 between Madonna and LN.

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Its probably a 90/10 split after expenses. And even that seems like a lot. Then she has to pay a percentage to her management and taxes. If U2's 360 was a stadium tour and cost 700k to produce each show this show should be between $350k and $500k but again no one really knows. And for Ms show do you calculate all expenses related to rehearsal and production and average if out per a show?? I would just use the amount of money it cost to set up break down and move the stage and crew. You are paying the crew a per week probably so if they do 3 vs 4 shows in a week your profit increases as you would be paying them either way. But one thing is for sure M is getting paid!!

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Here's a good example : the Bercy Arena price is 300K€ ($350K) for one night (source), so we can assume it's the same price for arenas in major markets.

Now, I doubt the tour costs 1 million per show, it's too much! The dancers and technicians and truckers are not paid 10K a month :smile:

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Here's a good example : the Bercy Arena price is 300K€ ($350K) for one night (source), so we can assume it's the same price for arenas in major markets.

Now, I doubt the tour costs 1 million per show, it's too much! The dancers and technicians and truckers are not paid 10K a month :smile:

How can we assume that though? The European ticket prices are the lowest on the entire tour, so it's fair to say that the costs must also be the lowest for them to be able to go that low.

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Guest Rachelle of London

How can we assume that though? The European ticket prices are the lowest on the entire tour, so it's fair to say that the costs must also be the lowest for them to be able to go that low.

Exactly.

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I think to remember that it has been reported that her contract with LN says that she gets 90% of the revenue from ticket sales and LN gets the other 10%. And why not? If she is the sole producer (financially) of the show, sure she gets the biggest chunk. But this is just the revenue side of it all. We don't know about the costs and therefore don't know about the profit that is generated. Based on ticket sales only. Merchandise is a whole different matter. This is even more tricky since those revenues are never reported and we certainly don't know what the costs for printing a tour book or producing a coffee mug or t-shirt are. I'd assume it's highly profitable. From what I remember this is split 50/50 between Madonna and LN.

I think you're confusing revenue and profit. M taking home 90 percent of the revenue is financially impossible.

Still, though, suggesting that M takes home 90 percent of the profit is absurd. There are other financial stakeholders, including Live Nation and Citi, and they're not going to settle for a combined 10 percent.

Here's a good example : the Bercy Arena price is 300K€ ($350K) for one night (source), so we can assume it's the same price for arenas in major markets.

Now, I doubt the tour costs 1 million per show, it's too much! The dancers and technicians and truckers are not paid 10K a month :smile:

The costs are far more than just renting the venue, though, and they include more than just the production of each individual show. Millions of dollars are spent before the tour even starts, and those costs are spread across each show in the "per show" cost.

Just off the top of my head, pre-tour expenses would include:

  1. Salaries for show director, tour director, stage director, accountants, and various assistants
  2. Rent for rehearsal spaces -- including renting a major sports and concert arena for two full weeks
  3. Costs for stage and set materials
  4. Consultant fees for stage and set design
  5. Labor costs for stage and set assembly
  6. Salaries for band
  7. Costs for instruments, speakers, etc.
  8. Salaries for background singers
  9. Consultant fees for costume design
  10. Costs for costume materials
  11. Labor costs for costume fitting and assembly
  12. Salaries for the wardrobe staff after the costumes are finished
  13. Salaries for make-up artists and hair stylists
  14. Costs for make-up and styling materials -- combs, hair spray, make-up, etc.
  15. Salaries for video directors
  16. Consultant fees for video design, production and editing

There were dozens of full-time employees for at least three months of rehearsals. When combined with other major cost items -- rent, video production, costumes, stage production -- tens of millions of dollars had probably been spent before opening night. Once the tour begins, there are dozens more non-venue costs -- labor costs for the crew to break down / set up the stage every night, trucking costs (literally the cost of renting tractor trailers, plus the fuel expenses), flight costs between four continents, six months of hotels and food for dozens of traveling cast and crew over, etc. etc.

All these costs are spread out over the life of the tour to get the "per show" number. It's actually pretty easy to imagine this costing $1m / show.

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I think you're confusing revenue and profit. M taking home 90 percent of the revenue is financially impossible.

I only repeat what each report on her 360 deal with LN said in regards to touring. Revenues from ticket sales are shared 90/10 between Madonna and LN. Considering that I'm convinced she is producing this all on her own it is absolutely not impossible that she gets those 90 percent of the revenues. It actually makes perfect sense considering she has to cover all the costs on her own as well. In result (if my assumption is indeed true and let's face it we all don't know how this thing is set up so it's all assumptions) she not only gets 90 percent of the profit she gets all the profit.

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http://hitsdailydouble.com/news&id=279475

"Live Nation also is expected to pay $50 million in cash and stock for the right to promote Madonnas concert tours. If and when she does tour, though, the promoter will only get 10% of the gross, with 90% going to the artist; that is the standard split for music superstars in the concert industry these days. Income from licensing ventures such as the use of Madonna's name on fragrances or other products would be divided evenly with Live Nation."

http://www.businessinsider.com/2007/10/live-nations-12

"LN will give her 90% of concert sales and 50% of licensing money it collects."

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Found this article from an economic newspaper from Argentina, discussing the touring business in this country, quoting local promoters, it claims Madonna (along with the Rolling Stones and U2), has a $5M dollar fee per show, at least in Argentina.

I do remember that back in 1993 when M and Michael played in Buenos Aires, it was reported in the press that her fee was 1.3M and Michael's 1M(he did 3 shows, M did 2).

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Found this interesting article in spanish from an economic newspaper from Argentina, discussing the touring business in this country, quoting local promoters, it claims Madonna (along with the Rolling Stones and U2), has a $5M dollar fee per show, at least in Argentina.

I do remember that back in 1993 when M and Michael played in Buenos Aires, it was reported in the press that her fee was 1.3M and Michael's 1M(he did 3 shows, M did 2).

"Esta especial atención se dará en general, aunque será mucho mayor en caso de que se intenten contratar a algunos de los que conforman el top 5 de los más reconocidos y con más alto cachet, como U2, Madonna y The Rolling Stones.

Los integrantes de este selecto grupo cobran cerca de u$s 5 millones por cada show, una cifra compleja de sobrellevar en un contexto de mediana estabilidad, pero mucho más dura si se debe afrontar luego un cambio en la paridad cambiaria."

http://m.cronista.com/Mobile/nota.html?URI=/contenidos/2015/08/24/noticia_0018.html

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just for comparison, how much she gets for Wetten dass or some horrible japenes tv show?

Those promotional show probably only pay her expenses/travel/hotel

As she giver them raitings and they give her exposure

I doubt they have a fee to book madonna

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Those promotional show probably only pay her expenses/travel/hotel

As she giver them raitings and they give her exposure

I doubt they have a fee to book madonna

I always thought those shows paid millions or at least close to a million. [back in the 90s- and maybe even up to COAD era]

But I do think that is no longer the case. Like this years promotional tour early spring.

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