Download budgeting for the commercial theatre

“So, you wanna’ be a Producer?!”
Section 4.1 (Page 1 of 2)
BUDGETING FOR THE COMMERCIAL THEATRE
Introduction
Budgeting is partly an art and partly a science. Much of the information needed
for budgeting can be accurately deduced but a certain amount can only be
educated guesswork.
Before attempting to budget,
gather as much information
as you can. This should
include:-
• An outline date schedule, showing the number of rehearsal weeks, get in
days, rehearsal days on stage, number of previews and the opening night.
• Is the show to be produced directly into the West End, opened out of town
and transferred to the West End, opened out of town and toured, or toured
and then transferred to the West End.
• What are the Author’s deals and who will make up the Creative Team.
• What is the size of the Cast, how many Understudies will be needed and what
are the top salaries likely to be. Will there be a Star on a percentage.
• For a musical, the size of the Orchestra, the musical line up and will the
Musical Director be included in the line up or is he or she an extra person.
• The make up of the stage management and other technical departments, to
include:- Wardrobe and Dressers, Wigs, Sound, Lighting and Follow Spots,
Automation and Projection, Stage Staff and, if there are children in the
company, Chaperones.
• What production staff will be needed - consult an experienced Production
Manager.
• Will the show require the services of a General Manager.
• Consult with your lawyer, accountant and insurance broker on their likely
levels of fees and costs.
• What Theatre will the show be suited to. Ideally get a ‘total seater’ from the
Theatre on the basis of the seat prices you expect to charge. Also try to
establish the costs the Theatre will pass on to you (the contra) and the level
of rent you will be able to negotiate both before and after recoupment.
• You need to have a clear idea of the scope of the physical production in terms
of the set, props, costumes, wigs, lighting, sound, special effects and any
other areas which must be included in the budget. This area of production
budgeting requires some use of a crystal ball and more practically the advice
of an experienced Production Manager. This area of budgeting will also have
a very real influence on the artistic scale and style of the production and
needs careful consideration.
• Take advice from a reputable theatre advertising and marketing company on
their suggestions for setting budgets in all areas of advertising, marketing,
print, photographs and front of house display.
© Andrew Treagus
“So, you wanna’ be a Producer?!”
Section 4.1 (Page 2 of 2)
BUDGETING FOR THE COMMERCIAL THEATRE
The Budget
The sample outline budget on the next 2 pages is divided by columns to show:• Production Costs, all costs which will be incurred in mounting the
production up to the first paid performance. Include also costs which cannot
be classified as regular running costs, up to the Press Night (e.g. the Press
Night party).
• Running Costs, all costs of running the production on a weekly basis. Be
sure to include all costs which cannot be classified as production costs.
• Royalties, the weekly percentage payments to Authors, the Creative Team
and the Producers, based on the weekly net box office receipts.
• Notes on the outline budget follow, and should help to explain what each line
in the budget refers to.
© Andrew Treagus