Understanding Show Settlement: What Comedians, Agents, and Managers Need to Know

For many comedians, agents, and managers, settlement is where the financial reality of a show becomes clear. A successful show isn't just measured by ticket sales, it's measured by what the actual “walkaway” is after expenses, taxes, and other costs are accounted for.

Many people assume that bigger venues automatically result in bigger paydays. However, that isn't always the case. It's not uncommon for a comedy show in an arena to generate a lower walkaway than the same comedian performing in a theater, despite there being significantly higher gross revenue. Increased production costs, rent, labor, staffing, security, expenses, and other operational costs can dramatically impact the final settlement. In some cases, if ticket sales are strong but still shy of a sell out and expenses are high, a show can even lose money, with the client ultimately having a very small walkaway, or no walkaway at all, depending on how the deal is structured.

Understanding settlement and knowing what questions to ask can make a substantial difference in protecting revenue and maximizing profitability.

Before diving in, it's important to understand that settlement can be a very broad topic. Entire articles can be written on subjects such as house nuts, labor agreements, cross-collateralization, 360 deals, ticket audits, taxes, production expenses, chargebacks, VIP package revenue and other settlement-related items. Rather than attempting to cover every aspect of settlement in a single article, the goal here is to focus on several foundational concepts that every comedian, agent, manager, and touring professional should understand.

In this article, we'll cover:

1. What show settlement is

2. The differences between GBOR, NBOR, Split Point and Walkaway

3. Why deal sheets matter

4. Why receiving a pre-settlement matters

5. Why asking questions matters

6. How experience helps protect revenue

Understanding these fundamentals will provide a strong foundation for evaluating settlements, identifying potential issues, and ultimately helping protect a show's profitability.

What is Show Settlement?

Show settlement is the final financials of a show (or series of shows) that include ticket sales, premium ticket lifts, buyouts, taxes, expenses, bonuses and a final walkaway amount for both the promoter and talent. It is based on what was in the agreed upon offer and reflects the information that's on the show's deal sheet.

While this article focuses primarily on settlement between the promoter and talent, it's important to understand that there are often multiple settlements taking place. Just as the promoter and talent reconcile revenue and expenses, the promoter and venue may also have their own settlement that governs rent, labor, ticketing, facility fees, staffing, and other venue-related expenses or items being passed-thru for payment. Depending on the structure of the deal, all or some of those costs ultimately flow into the settlement being presented to the talent.

MERCHANDISE SETTLEMENT

If merchandise is being sold, there is a separate merchandise settlement as well. Merchandise settlements typically reflect total merchandise sales, venue split, taxes and who retains taxes, staffing fees, credit card processing fees, and any other agreed-upon deductions. Unlike show settlement, merchandise settlement is generally handled separately and is not usually included as part of the promoter settlement unless merchandise participation has been specifically negotiated as part of the deal.  It’s also common to see there be different percentages on a merch settlement for soft (cloth) and hard (CDs/DVDs/Vinyl, agreed upon products, etc.) goods. 

Many larger tours, venues, and merchandise operators now utilize platforms such as atVenu to manage inventory, point-of-sale transactions, reporting, and merchandise settlements. These systems help track sales in real time, streamline inventory management, automate settlement reporting, and provide greater visibility into merchandise revenue throughout a tour. Regardless of the platform being used, it's important to understand that merchandise settlement is its own process and should be reviewed with the same attention to detail as show settlement.

WHEN SHOW SETTLEMENT TYPICALLY OCCURS

Settlement for the show itself typically occurs during the show and/or after. If multiple shows are in the same venue back-to-back, it's very common for there to be one settlement that combines all numbers, however it truly depends on what's in the deal. When there are multiple shows combined into one settlement, each show does have final costs and it's important to make sure you align with the promoter and venue on those numbers as they come in.

Settlement ultimately determines what revenue reaches the talent and promoter. While agents negotiate the deal and establish the financial framework, settlement is where those agreed-upon terms are applied based on the deal structure and the show's actual financial performance including ticket sales, ticket lifts, guarantees, bonuses, buyouts, reimbursements, and other revenue components, then reconciled against show costs, taxes, and any other financial obligations outlined in the deal. Understanding both the deal sheet and the settlement process is essential to ensuring the numbers are accurate.

While most shows settle the night of the performance, this is not always the case. Festivals, stadium shows, international dates in some markets, and other large-scale shows may require additional time to finalize settlement due to the complexity and volume of expenses involved. In some cases, final invoices from vendors, labor bills, or other service providers may not be available immediately following the show. There are also occasions where a promoter may not be prepared to settle on show day. As a result, final settlement can sometimes occur days or even weeks later. When anticipated, communication is key.

Understanding Key Settlement Terms

There are many terms that come up and a few that are important to bring up are GBOR, NBOR, Show Costs, Chargebacks and Walkaway.

GBOR

GBOR stands for Gross Box Office Receipts. This is the total amount of ticket sales with no deductions. If any fees are to be deducted, this is the gross number before any deductions. Gross Box Office Receipts should also include any form of ticket lifts, which are premium seats that are sold at a higher price. For shows that utilize Ticketmaster, premium seating is referred to as platinum tickets. Also, if any facility maintenance fees (FMF) are baked into the ticket price, the GBOR is the number before deducting the FMF from each ticket sold. 

NBOR

NBOR stands for Net Box Office Receipts. This is the total amount of your gross ticket sales less any fees, which could include facility fees and taxes.  If there's any bonuses, premium ticket sales, VIP lifts or buyouts, depending on how the deal is structured, they may be included above the line or below the line.  Above the line is incorporated as part of the net number, where below the line is after expenses or additions to come up with the walkaway which utilizes the NBOR amount to calculate.

Price Levels

When calculating box office receipts, it's common to refer to the various ticket prices as price levels. In short, we may refer to them as P1, P2, P3, P4 and so on. P1 would be the most expensive price level with each price level descending to the next tiered lower-priced ticket.  If a show is selling strongly, the price levels may remain largely unchanged.   If sales are soft, dynamic pricing may be implemented, which can result in additional price levels being added and higher priced tickets moving to a different price level.  Moving P2s to P3 price level would be flexing down in price one price level.  The same principle could apply in flexing up.

Show Costs

Show costs are the various expenses associated with producing each show. These items are typically, but not always, defined and broken out on the deal sheet. Some of the many expenses include advertising, catering, production (sound, lights, video), rent, runners, security, stagehands, medical staff, towels, permits, support and more. I purposely say 'typically' as it is common for there to be expenses sometimes not on the deal sheet. The question becomes whether it was discussed and/or approved during the advance as a show cost and is it a legitimate expense. Sometimes agents and/or promoters address this as a 'miscellaneous' expense within the deal sheet.

Some of these numbers will be fixed and others may be variable. Additionally, there are variable expenses that may work off percentages. These can include performing rights organization fees (ASCAP, BMI, SESAC, GMR) and insurance. The deal sheet will generally indicate how these costs are calculated. If touring internationally, different organizations and rates may apply. For example, in Canada you'll commonly see SOCAN in place of ASCAP, BMI, SESAC and GMR.

Chargebacks

While discussing show costs, it's also important to understand chargebacks. A common misconception is that if a promoter pays for something, it automatically becomes a show cost. That is not always the case.

A chargeback is generally an expense paid by the promoter on behalf of the tour or show, that is not included as an agreed-upon show cost and is instead deducted below the line during settlement. In other words, the promoter advances or covers the expense, but ultimately recovers the cost through settlement.

For example, if a crew member becomes ill and a doctor is requested to come to the venue and the final cost is $300, the promoter may pay for the visit and then deduct the $300 as a chargeback during settlement.

Another common chargeback scenario I've encountered involved casino dates operating under a flat guarantee that was inclusive of the use of the venue's in-house production. In several instances, a client requested additional backline that was not included as part of the original agreement. The promoter agreed to have the casino provide the rented equipment, with the understanding that those rental costs would be deducted during settlement as a chargeback.

Chargebacks can also occur when a promoter agrees to cover an expense up to a specific capped amount. If the actual cost exceeds the agreed-upon amount, the overage may be charged back to the tour rather than included as a show cost.

As with any expense presented during settlement, it's important to understand whether an item is being treated as a show cost or as a chargeback, as the financial impact can be very different.

Taxes

Before arriving at your final walkaway, taxes must also be considered. There may be taxes above the line on ticket sales, city taxes, state taxes, entertainer taxes, and in some situations withholding requirements depending on the market and circumstances involved. Overseas, it is common to see VAT, GST and/or QST or other country-specific taxes depending on where the show is taking place.

As tax laws varies by jurisdiction and individual circumstances, this article should not be considered tax or accounting advice.  Always consult with qualified financial and tax professionals regarding any questions related to settlement, withholding, entertainer taxes, or other tax-related matters. 

Walkaway

Finally, we arrive at the final financial outcome of the show.

If there's a percentage involved, it will typically be calculated by taking your net box office receipts less expenses. The number that remains is commonly referred to as the split point. If the show is a straight percentage deal of 90/10, then 90% of that number becomes your walkaway, less any deposits already paid and any agreed upon below-the-line deductions or additions. If the deal is structured with a guarantee, and lets say its a vs. deal $100,000 vs 90% and the show didn't go into percentage, the walkaway would be $100,000.

Common deductions may include withholding taxes, and cash given during settlement (do not get this confused with show float), while common additions may include approved travel reimbursements, support payments or production reimbursements.

This is where you’ll want to make sure payment instructions were specified, whether it’s by wire, ACH, or check and that the promoter has received any required tax paperwork. 

In future articles, we'll dive deeper into many of these topics.

Understanding the Deal Sheet

Every deal sheet breaks out the details that are essential in understanding how a show's financials are structured. It will include any guarantees and the type of deal the show is operating under. This includes capacity numbers, price levels, ticket prices, taxes, and any deductions from the ticket price. It will also include any buyouts included in the deal, total projected expenses, and perhaps most importantly, the venue's total capacity, holds, kills, comps, and overall sellable capacity.

It will provide forecasted amounts and walkaway potential figures based on projected expenses and a sold-out scenario.

The deal sheet also includes many other important details such as the show date, door time, number of shows, show time, curfews (if any), pre-sale and/or onsale dates, venue information, promoter information, billing specifics, and other deal-specific terms, provisions and notes. If merchandise is being sold, it may outline the venue merchandise deal with split amounts and whether it is an artist sell or venue sell. It may also identify revenue streams that are excluded from the deal. For example, club seating suites in arenas may not be included depending on the market and terms negotiated. It also would include any bonus language.

So let's review some of the most common deal structures.

Flat Guarantee

This is where you receive a flat agreed-upon amount regardless of how many tickets are sold. This is a common structure in casinos, although other variables may still exist regarding production expenses and responsibilities.

Percentage Deals

A percentage deal is where you receive a percentage of the total after net box office receipts (NBOR) after expenses are deducted.   An example of how it would appear on the deal sheet: 90% of NBOR after expenses

Vs. Deals

A vs. deal is typically a guarantee versus percentage arrangement, with the client receiving whichever amount is greater.  If a show falls below the split point, the client receives the guarantee that was negotiated. This may read on the deal terms like this: $50,000 vs 85% of NBOR after expenses.  Whichever is greater

Bonuses

It's not uncommon, particularly for strong-selling comedians, musicians, groups, or talent of any kind, to have bonuses built into the deal. This could include a fixed dollar amount per ticket sold above a certain threshold, a lump-sum bonus, or an increased percentage once certain sales milestones are achieved.

Sellable Capacity

The deal sheet will show the total venue capacity less any holds, kills, or comps.

Ticket holds may be reserved for marketing purposes, relocating guests from obstructed seats, ADA seating, VIP needs, or other operational purposes. Kills are seats, rows or sections that cannot be sold due to show scaling, production requirements or permanent house obstructions or limitations.  A common example is production kills in the orchestra section where sound and lighting consoles are positioned. If a show is only going to be built to sell half the available seats in the venues capacity, with sections intentionally closed off, the venue is being scaled down in capacity.

Comp tickets are tickets allocated to the artist, promoter, manager, venue, or other approved parties with no sale value when distributed. However, comp tickets can often be released for sale and should never be viewed as revenue that doesn't exist. Releasing comp tickets for sale that do actually sell will raise the gross. 

Deposits

If deposits are part of the deal, the amounts and payment schedule will typically be outlined within the deal sheet with the terms to include dates and wiring instructions.

The key point is simple: if you don't understand the deal sheet, you can't properly review the settlement.  Settlement is ultimately the application of the deal sheet to the actual results of the show.

Why Pre-Settlements Matter

One of the best ways to avoid surprises during settlement is to request a pre-settlement in advance, especially on sold-out shows, high-grossing shows, and percentage deals. A pre-settlement provides a snapshot of the show's financial position prior to settlement and allows everyone involved to review anticipated expenses before the show takes place.

While the numbers presented on a pre-settlement are preliminary estimates and may ultimately change, they provide an opportunity to identify discrepancies, question unexpected costs, confirm staffing levels, and ensure everything is as closely aligned as possible before arriving at settlement. Without a pre-settlement, financial issues often aren't discovered until show day, when there is significantly less time to investigate, challenge or address them.

Typically, I make sure to have pre-settlement requirements included in the rider along with settlement instructions so expectations are clearly established in advance.

One example that stands out involved a theater that provided a pre-settlement which did not include several charges that were later presented on show day. These included charges for the marquee, wireless internet, and a substantial increase in security, labor and house costs totaling several thousand dollars more than what had been reflected in the pre-settlement. There was nothing about the day that went sideways until receiving these numbers.

Because the pre-settlement had been reviewed in advance with backup, those differences immediately stood out. I pushed back on the venue regarding those charges and requested time sheets along with a detailed breakdown of the security and stagehand labor being billed.  Upon further review, it became apparent that some of the numbers being presented did not align with what had previously been provided.   After multiple conversations involving the venue, promoter, and agent that evening, several of the additional charges were removed.   The stagehand and security labor were also adjusted after the time sheets showed that fewer security had actually worked the show than what had originally been estimated and some other discrepancies were found.

Situations like this highlight why pre-settlements are so valuable and experience matters in knowing what to look out for. The purpose is not to challenge every expense. The purpose is to understand the expenses being presented, identify anything that appears inconsistent, and ask questions before settlement is finalized.

A pre-settlement is also more than just a financial document. It serves as a useful operational checklist. Labor, production, security, catering, runners, rentals, and other expenses reflected on a pre-settlement often reveal whether items discussed during the advance have actually been confirmed and ordered.

I've encountered situations where security staffing appeared significantly below budget on a pre-settlement for comedy shows in theatres, prompting additional conversations about whether the show is being staffed appropriately for safety purposes, often times resulting in needing to increase staffing numbers.  I've also seen scenarios where rental gear discussed during the advance had not yet been fully confirmed as noted by not having an estimate.  Without a pre-settlement, many of these issues can easily go unnoticed until much later in the process.

At its core, a pre-settlement provides an opportunity to verify information, align expectations, and reduce surprises. The larger the show and the greater the financial stakes, the more valuable that opportunity becomes. I've often had shows where based on the pre-settlement completed in advance, the actual settlement was complete in minutes when final numbers were  received.  When having to manage your time on shows, this is extremely beneficial.

The Importance of Reviewing the Numbers

Reviewing the numbers should not begin on show day. Ideally, it starts before the onsale and continues right through settlement.

One of the most valuable reports for anyone settling is the daily ticket counts sent from the promoter.  Consistently reviewing ticket sales allows agents, managers, promoters, and tour managers to understand how a show is performing long before the show and settlement take place. Depending on the tour, there may also be additional parties reviewing these counts as part of their responsibilities. On many comedy tours, the tour manager wears multiple hats and is often responsible for handling settlement responsibilities. On many large music tours in theatres, amphitheaters, arenas, and stadiums, it is customary to have a dedicated tour accountant responsible for reviewing ticket counts, expenses, and settlement reporting as well as a variety of other financial responsibilities.

Strong sales can create opportunities for additional revenue. If a show is approaching a sellout, discussions may take place regarding the release of additional inventory, production holds, or other seats that were previously unavailable for sale to maximize the net.  On the other hand, if ticket sales are light, daily ticket counts provide an opportunity to discuss additional marketing efforts, promotional initiatives, or potential pricing adjustments that may help improve the overall outcome of the show.

By the time settlement arrives, unless issues arise on show day, there should be very few surprises regarding where a show ultimately lands financially. Daily ticket counts, ticket audits, sold maps, lift reports, pre-settlements, and both promoter and venue final expenses all work together to provide a clear picture of a show's financial performance.

A ticket audit provides a detailed breakdown of ticket sales across all price levels and inventory categories. Depending on the ticketing platform being utilized, the format and report types may vary, making it important to understand how to read the reports being provided. Most audits are broken out by price level and include a key that identifies where each ticket price appears within the report.  Sometimes it can be tricky, so ask questions if you are unsure.

Often, I have a highlighter with 2 copies and a magnifying glass (as funny as that sounds) when I can tell it may take time to read it. In addition to total tickets sold, many audits also include daily sales activity broken out by type of sale, which can provide valuable insight into walk-up business and day of show (DOS) sales. If you're curious about the magnifying glass, it's more for reviewing sold maps or ticket holds when counting seats and verifying inventory is important.

Typically, once the box office closes, a final ticket audit is generated. Depending on the venue and show, this may occur while the headlining comedian is on stage or shortly thereafter. Additional reports commonly provided include premium seat lift reports and attendance reports. The attendance report is an important item in settlement as often insurance is calculated based off the drop count. Drop count is the term commonly used to describe the total number of patrons inside the venue. I always recommend reviewing these reports carefully. Sometimes what appears to be a sold-out show on a ticket count report is not necessarily reflected the same way in the final settlement documents.

On one tour date years back, I received a ticket audit approximately 24 hours before a show and everything appeared to be in order.  The show was clean.  All of the comp tickets I wasn’t planning to use had subsequently been released and sold, so there were no obvious concerns heading into settlement.

When the final audit was presented the following day for settlement, I noticed more than 30 additional tickets reflected on the audit that had not appeared on the previous report.  Rather than simply accepting the numbers, I reviewed the paperwork and worked with the venue to determine what had changed.  After digging deep on this, the venue identified an error on their end and adjusted the settlement accordingly in my clients favor. The correction increased the gross by several thousand dollars and resulted in a higher walkaway for the client.

Situations like this are one of the reasons settlement should never be treated as a routine administrative task. Most discrepancies are not intentional, but errors can occur when multiple departments, ticketing systems, and personnel are involved. Taking the time to review the numbers, compare reports, and ask questions when something appears unusual can make a meaningful difference in the final settlement.

The ticket audit is only one part of the review process.  All expenses presented during settlement should be reviewed carefully as well. This includes venue expenses, promoter expenses, production costs, catering, security, rentals, transportation, and any other charges being billed to the show.

If cash is advanced to runners for purchases throughout the day, review the receipts submitted. You'd be surprised how often additional items appear that were never requested or approved. Likewise, if catering or hospitality is being provided through an in-house exclusive vendor, it is always advisable to request pricing in advance.  In some situations, a buyout may be more cost effective if one is required when bringing an outside caterer in rather than utilizing in-house catering.

The goal is not to challenge every charge. The goal is to understand every charge.

Experience often reveals that some of the most valuable questions are the simplest ones.

Questions to Ask Before Signing Off on a Settlement

As you've probably noticed throughout this article, settlement is not simply about reviewing a final number and signing off. It's about understanding how the numbers were calculated, verifying that the deal sheet was applied correctly, and identifying any discrepancies before settlement is finalized.

With that in mind, here are several questions worth asking yourself before signing off on any settlement:

• Was a pre-settlement provided and was anything not provided that was discussed?

• Do the expenses match what was advanced?

• Have all ticket sales been verified?

• Were any new expenses added?

• Do labor costs align with staffing levels?

• Are premium seats properly accounted for?

• Does the settlement align with what’s in the deal sheet?

• Are all bonuses, buyouts, and reimbursements properly reflected?

• Were there any financial discrepancies throughout the day that need to be discussed?

• Are there any numbers not included in settlement for any particular reasons?

• Have all applicable taxes and withholdings been calculated correctly?

• Have any unusual variances been explained?

• Is there anything that simply doesn't look right and do I need to hold off on finalizing this settlement?

Sometimes the most important question is the last one.  If something is off, do not hesitate to have conversations with the agent, management and/or promoter.  Sometimes discussing an issue with an experienced second set of eyes can make all the difference.

In this business, a good hire is often less expensive than a bad fire. The right hire in this role can often pay for their salary many times over through the revenue they help protect for a client. Someone skilled in this role will often identify opportunities for additional revenue as well. Settlement is one of many areas where experience can make a measurable difference. The right questions asked at the right time can often protect revenue long before a settlement is complete.

Final Thoughts

Settlement is more than a financial exercise. It is the final accounting of how a show performed and ultimately determines the financial outcome for everyone involved. From the talent and promoter to managers, venues, investors, and other stakeholders, settlement is where the business side of live entertainment becomes reality.

The larger the show, the more important the details often become. Understanding deal sheets, reviewing ticket audits, requesting pre-settlements, and asking questions when something appears inconsistent can help protect revenue and avoid costly surprises.

Throughout this article, we’ve discussed everything from deal sheets and pre-settlements to ticket audits and reviewing expenses.   While the specifics may change from show to show, the underlying objective remains the same:  understanding the numbers well enough to identify when something doesn’t look right.  

In many cases, experience isn’t simply about knowing the answers.  It’s about recognizing the details others may overlook, asking the right questions, and protecting the financial interests of everyone involved in the show.