Download key points to consider when contracting a west end theatre

KEY POINTS TO CONSIDER WHEN CONTRACTING A WEST END THEATRE
GENERAL COMMENTS
It is often difficult or impossible to book a West End theatre more than a few weeks in advance. This is because
most theatres operate "open ended runs" - i.e. a production will continue to play so long as the weekly net box
office receipts are sufficient to give a weekly profit. The normal arrangement is for the theatre owner and the
producer to each have the right to give an agreed number of weeks notice (2 or more) to the other when the
weekly net box office receipts fall below the contractual break figure for an agreed number of consecutive
weeks (normally 2 weeks for plays).
Special circumstances can occur so that the theatre owner and producer will know well in advance that a
production may close on a specific date - e.g. limited seasons; star's contract ends and producer will not recast;
a stop date has been mutually agreed, etc.
KEY POINTS TO NEGOTIATE
1.1 WEEKLY RENT
How much is the weekly rent? (Normally referred to as a fee because of VAT considerations)
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is it a fixed rent or on account of box office receipts
is it guaranteed by the producer or is it a share of the box office receipts
is it lower before recoupment of production costs and/or does it rise after recoupment
is it payable during the fit-up and opening week(s) (if rent is payable is it the full contractual rent or a
portion thereof)
is it payable during the get-out.
NB Because of the recent shortage of productions looking for West End theatres there have been occasions
when the rent (and even the Contra) have not been guaranteed by the producer and theatre owners have been
prepared to take some of the risk by sharing the weekly box office receipts, either on a straight percentage
basis or on some form or first, second, third.... call basis, or on guarantee.
1.2 WEEKLY CONTRA
What is the total weekly cost? (theatre owners on request should supply a sample)
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staff - how many
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are they available to producer full time (e.g. box office)
o levels of pay
o NI
o pensions
o any contractual guaranteed overtime
Are there sufficient staff for production? Arrangements for engaging extra staff and at what rates
Are all estimated costs on contra reasonable
Are estimated costs best value for money
o negotiable
o fair.
1.3 NOTICE CLAUSES
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How many consecutive weeks below break figure (usually 2)
Are opening week, Christmas week, Easter week included/excluded in the weeks below the break
figure
How many weeks notice to be given
Any minimum run guarantee
If limited season is it guaranteed or can notice still be given during season
Is there any right for the owner to terminate regardless of levels of business (e.g. after 12 months).
1.4 PP SEATS (IF ANY)
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How many
Who benefits
Are there any allocated for Stage One Voluntary Levy.
1.5 BOX OFFICE
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Where is advance held? Is it secure, is it in Trust
Who benefits from interest
What charges (other than VAT) are being deducted from weekly receipts, e.g.
o Credit card commission at cost or marked up by theatre – rate must be specified
o Phone room and telephone booking charges (if any) – rates must be specified
o Ticketing charges for computer hardware/software – per ticket – charged as comps?
Arrangements, if any, with supplier of hardware tying producer to one of big ticket agents (e.g. First
Call/Ticketmaster)
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Arrangements with main ticket agent (if any)
Which phone numbers to be published in guides, classifieds and advertising
Details of allocations to all agents
Arrangement with all agents - e.g. commission deals, who hold advance monies, bonds, settlement
dates etc.
Phones switch out of hours - to whom - who pays
Ticket prices, total house value, concessions, number of performances, time of performances
Complimentary seats, charge for press night
House seats, who controls, when released, charged at full value?
1.6 CAST/RE-CASTING
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Is contract dependent on named stars
Arrangements if named star does not appear (e.g. illness)
Arrangements for re-casting
o Does theatre owner have approval of re-casting (not to be unreasonably withheld)
Can contract be terminated if theatre owner does not agree re-casting
Insurance for non-appearance of star(s) or cancellation for causes beyond producers’ control.
1.7 DEPOSITS
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Theatre owners will usually expect a cash deposit or bank guarantee from the producer to ensure all
liabilities under the contract are fulfilled.
If cash deposits are paid, check who benefits from the interest – usually it is the producer.
Size of deposit is negotiable and will depend on the weekly amounts of rent and contra payable, the
reinstatement costs, the length of notice and the theatre owners’ perceived risk.
1.8 MISCELLANEOUS
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Use of stage for rehearsals, maintenance of set, etc.
Reinstatement, wear and tear, equipment in working order
Dates preview, press night, charity perfs. etc.
Right to inspect books or accounts, right to audit and at whose cost
Insurance provisions
Cancellation of performances - any compensation due to the theatre
Non-presentation of production, what is producer's liability
No interval - is there a penalty charge
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Complying with union agreements
Indemnity from producer that s/he owns the rights of the play and prosecution for obscenity etc.
Fire, licensing, health and safety regulations
Programmes - charges for complimentary copies - editorial control - charges for extra design and
changes
Merchandise arrangements, commission, staffing
FOH restrictions inside and outside on advertising
PRS - who pays for which part of what tariff
Foreign artists - the law requires the theatre to withhold tax at the standard rate of weekly payment
until Inland Revenue give the clearance on foreign artists
Weekly payment to producer (usually Thursday following end of each week)
Advertising - approvals of copy, fly posting, etc.
VAT - is it self-billing.