Problem
One more scenario. You are putting an offer in for a band in a 1,200 seat house. You want to do a plus deal with promoter profit of 15%. You plan to offer the band a guarantee of $10,000 with a split of the net of 85/15, after promoter profit of 15%. Your other expenses for the show are $8,000. The ticket price will be $25. The tax is 8%. You and the agent are allowing 20 comps. What is the Adjusted Gross Potential? How much is the promoter profit (ie - 15%) of what numbers? How much will the promoter make total (promoter profit plus your percentage of the overage) at a sellout? (Remember to remove comps.) What if it were the same deal, except that you were not able to negotiate promoter profit. Then how much would the promoter make at a sellout?