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“So, you wanna’ be a Producer?!”
A Guide for New Commercial Theatre Producers
CONTENTS
INTRODUCTION
i.
ii.
Starting Out and Using this Guide by Nick Salmon, Chief Executive of Stage
One
An Introduction to Commercial Producing by Paul Elliott, Vice-Chair of Stage
One
SECTION 1
GENERAL NOTES ON SETTING UP A PRODUCTION
by D Michael Rose of Tarlo Lyons
1.1
1.2
1.3
1.4
A Theatre Producer’s Glossary
Setting up a Production: The Role of the Producer
Key Points to Consider when Commissioning or Optioning a New Play or a New
Musical
Key Points to Consider in Creative Team Contracts
SECTION 2
TRADE ASSOCIATIONS AND ENTERTAINMENT
UNIONS
by the Society of London Theatre
and the Theatrical Management Association
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
The Society of London Theatre (SOLT)
The Theatrical Management Association (TMA)
The London Theatre Council (LTC)
Equity- Standard Agreements
The Musicians’ Union - Standard Agreements
BECTU - Standard Agreements
The Writers Guild - Agreements
Schedule of SOLT/TMA Agreements
Current SOLT/Union Rates
Current TMA/Union Rates
The Performing Rights Society - Music in Theatre and Tariff T leaflets
SECTION 3
3.1
3.2
3.3
3.4
3.5
THEATRE AGREEMENTS
by Stage One
Key Points to Consider When Contracting a West End Theatre
Theatre Bookings
Key Points to Consider When Contracting with a No.1 Touring Theatre
Key Points to Consider When Contracting a Co-Production with a Producing
Theatre
Co-Production and Joint Venture Deals
SECTION 4
BUDGETING AND FINANCIAL CONTROLS
by Andrew Treagus of Andrew Treagus Associates
4.1
4.2
4.3
4.4
4.5
4.6
Budgeting for the Commercial Theatre
Outline Budget
Notes on the Outline Budget
Capitalisation, Profit and Loss and Recoupment
Royalty Pools
Royalty Reductions, Deferments and Caps
SECTION 5
5.1
5.2
5.3
5.4
5.5
5.6
5.7
MISCELLANEOUS
Key Points to Consider in Raising Finance - FSMA Registration or Debenture
Route
Cover Yourself: Insurance Hints
(i) Marketing and Advertising
(ii) Publicity and Press Representatives
Stage One Information and Proposal Form
Stage One Council and Officers
Stage One Supporters
Professional Advisers: Solicitors, Accountants, Insurance Brokers
Useful Publications
“So, you wanna’ be a Producer?!”
i. (Page 1 of 2)
STARTING OUT AND USING THIS GUIDE
An Introduction by Nick Salmon
Welcome to our Guide, the purpose of which is to provide first time producers with an
introduction to the basic skills they will need to produce a play on a commercial basis. By
the nature of the business of producing plays, each of which is unique, this Guide cannot
be comprehensive, but we hope it will start new producers on the right track and give an
introduction to the basic skills needed to produce commercially. The various key points in
the individual contributions are intended as a guide and an aide memoire. You will not
necessarily achieve all of them on every production, but do try to achieve the best terms
possible and if in doubt, take advice.
Producing plays commercially has become ever more difficult and complex. The risks
involved in producing plays have always been very high, but recently we have seen the
rewards and returns dwindling. This has led to producers having to be ever more
inventive and creative in the ways they set up and launch their productions in order to
ensure that the costs are kept at a level at which a reasonable return can be made to
investors, provided the production plays to sufficiently high box office receipts.
As costs inevitably continue their upward spiral, producers have resorted to more and
more co-productions with other commercial producers and with subsidised producing
companies. The latter has enormous benefits both for the commercial producer, who will
mount his/her production at a considerable saving, and for the subsidised company who
will be able to present a play which it might not otherwise be able to afford, possibly with
star names, and from which it can earn from its future exploitation.
It is not only rising costs that today’s commercial producer has to cope with, but also the
fact that plays are often playing for shorter runs in the West End and on tour. Star actors
will not always commit for long runs, and often producers are finding that the audience
for a particular production is all too limited; this makes it difficult to recover the initial
investment quickly and still make a good return in the often all too short time available.
In addition to these pressures on profits, a producer also now has to cope with ever
more red tape and bureaucracy. The Financial Services and Markets Act makes it difficult
to raise money. Employment legislation, health and safety, EU legislation, ever longer
and more complicated contracts and many other factors make the producer’s job more
and more complex.
I hope this Guide will act as an aid in assisting new producers, not only in providing some
basic information, but also in helping with the presentation of new productions that will
have every chance of making large profits. Before embarking in your first production
consider the following:
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“So, you wanna’ be a Producer?!”
i. (Page 2 of 2)
STARTING OUT AND USING THIS GUIDE
by Nick Salmon
1. Do not attempt to produce a musical as your first production. The Guide contains
many references to and details about musical production in order to be as
comprehensive as possible but, in view of their complexity and costs, a new
producer would be foolhardy to attempt a musical as a first production.
2. Always ask for and listen to advice from established producers. It is never too
early to come to Stage One for advice and we are available as a free resource.
3. Work out your figures very carefully and assess the risk you are taking. No one
has to produce a play! If the costs are too high or the risk too great, don’t do it!
- or find another way of presenting it. If you want to make a living as a
commercial producer you must make business decisions as well as artistic ones.
4. Persevere - it is not easy to produce plays. Although you can benefit from the
experience of others, do try to find new ways of presenting plays that will make
money.
Finally, I would like to thank all the contributors to this Guide for their very valuable
input. They are all leading professionals in their fields and have very kindly
contributed to this Guide because they are keen to help newcomers start in the
Industry.
All of the contributors would be very interested in your comments (good or bad) on
the Guide. It will only continue to be of value and improve if those using it tell us
what is missing or not clear.
Good luck for your first production and for many more thereafter.
Nick Salmon
Chief Executive, Stage One
For further information about Stage One see Section 5.
© Nick Salmon
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
“So, you wanna’ be a Producer?!”
ii (Page 1 of 1)
AN INTRODUCTION TO COMMERCIAL
PRODUCING
by Paul Elliott
So!... You want to be a producer?... Then welcome to a brave body of people who
want to create that magical hit for which audiences will walk over hot coals and
climb up greasy poles to buy tickets.
Being a producer is not “rocket science” but it requires many talents coming
together and the Stage One Guide will we hope give you the practical guidance on
how to realise that dream.
There are many highs and lows in the journey of a producer – I know… I’ve survived
40 years! Never get too “arrogant” when you have a hit… and don’t get too suicidal
when you have a flop. A producer’s life is one of survival and tenacity… it’s a
marathon not a sprint!
When you have in your hand the script that you are convinced is the “one” then find
the team to make it happen. The director you are sure you can work with… the
designer who understands your budget – it’s your team… you are the captain… the
leader… the psychologist!... And you will have to work harder than all of them put
together and have that other strange component of success… luck!
Remember when you have raised the money (and the producer’s motto)
1) “never use your own money”
2) “never use your own money”!!
Then your investors become your partners… it’s their show too… so keep them in
the picture all the time – even when the news is bad! Look after your investors and
they will look after you.
No-one actually knows how this wonderful business works!.. There is no perfect
solution to any problem… just use your instinct and flair… and with hard work and
luck you will enjoy success.
Stage One is here to help and encourage young producers – I hope you will be one
of them… good luck… have fun… read on!
Paul Elliott
Vice-Chair, Stage One
1
© Paul Elliott
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Tel: 0845 218 4140. Email: [email protected].
“So, you wanna’ be a Producer?!”
Section 1.1 (Page 1 of 8)
A THEATRE PRODUCER'S GLOSSARY
Note:
This glossary gives what are considered to be the usual meanings of the words
and expressions concerned which are most commonly intended. It does not
mean that they may not be differently defined for contractual purposes.
Advance
An advance against payment for future services or future use of
copyright material. Frequently (but not necessarily) expressed as "nonreturnable" and as "recoupable" in whole or in part from royalties or a
portion of royalties. Advances are often paid to authors/composers for
an "option" on their work and to directors and designers for their
services to a production. The word "advance" may also be used to
describe advance ticket-sales.
Angels
Investors in a theatrical production.
Usually referable to private
individuals but can be used to include corporate investors as well.
Box Office
In its narrow sense refers just to the kiosk in the theatre-lobby where
members of the public can buy tickets, but in a wider sense can be used
to refer to the whole ticket retailing system which is usually controlled by
the theatre management. Can also be used to refer to advance ticket
sales, as in "How big is the box office?" meaning "How much have you
made in advance ticket sales?"
Break Even
The point at which weekly box office receipts (net of commissions and
VAT) exactly equal running expenses so that there is neither a running
surplus nor a running deficit.
Break Figure
The level of weekly Box Office Receipts below which notice of
termination of a theatre hire agreement may be given by one party
and/or the other. Sometimes also referred to as the “Notice Figure” or
“Take Off Figure”. Not to be confused with “break even” (see above).
Broadway
Loosely means, in a theatrical context, the Broadway district of
Manhattan in New York City and not just the street known as
"Broadway". Sometimes, contractually, it is defined by reference to
theatres of a particular size in a particular area bounded by specified
streets in downtown Manhattan.
Bus and Truck
Performances
An American expression which can also apply elsewhere relating to
touring productions which transport the entire stage company and
physical assets from place to place, presenting a small number of
performances at each venue before moving on. In America (and
sometimes elsewhere) they are often presented for a fixed fee (which
forms the basis for calculation of royalties instead of box office receipts).
© D Michael Rose
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
“So, you wanna’ be a Producer?!”
Section 1.1 (Page 2 of 8)
A THEATRE PRODUCER'S GLOSSARY
Capitalisation
The estimated (as distinct from actual) cost of preparing a production up
to the time of first paid public performance, as per producer's budget,
including deposits and a reasonable contingency reserve.
Cast Album
A sound recording of the songs in a musical show featuring the cast or
principal members of the cast of a particular production or productions.
Commercial Usage
Same as merchandising but related to services, rather than merchandise,
but the expression may be used instead of merchandising to include
both goods and services.
May also be applied to sponsorship
arrangements and use of show logo for commercial advertising or
promotion.
Copyright
The exclusive legal property right to copy, perform, broadcast and/or
adapt an original literary, dramatic, musical and/or artistic work, and/or
a sound recording, film, programme or typographical arrangement.
Governed by The Copyright, Designs and Patents Act 1988 (which
amended and consolidated prior legislation) and regulations made
thereunder.
Copyright under English law is divisible both territorially and between
media, and (unless otherwise agreed) may be licensed, sub-licensed
and/or assigned.
Creative Team
The director, choreographer, stage-sets designer, costume and wigs
designer, lighting designer, sound designer and orchestrator of a stage
musical (i.e. the creative personnel who are usually remunerated with a
copyright royalty). In the case of a non-musical play includes only the
director and the designers of sets and props, costumes and wigs,
lighting and sound.
Design Right
The exclusive legal property right (accorded by The Copyright, Designs
and Patents Act 1988) to reproduce for commercial purposes the original
design of the shape or configuration of the whole or part of a threedimensional object (not mere surface decoration).
Development
Charge/
Development Royalty
An additional charge which is sometimes made to the production costs
of a major production in order to recoup losses from a previous "try-out"
or a "workshop" production, in order to reflect the contribution of the
"try-out" or "workshop" production to the development of the major
production and the reputation of the work. Sometimes, instead of a
carry forward of try-out losses, a small “development” royalty may be
payable to the theatre management where the "try-out" or "workshop"
was presented in recognition of some special financial contribution or
indulgence by that theatre management.
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
© D Michael Rose
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
“So, you wanna’ be a Producer?!”
Section 1.1 (Page 3 of 8)
A THEATRE PRODUCER’S GLOSSARY
DGA Agreement
(APC Agreement)
Sometimes also referred to as the "APC Agreement" (Approved
Production Contract) or "Dramatists' Guild Agreement". Refers to the
standard form of production contract for plays (or the separate one for
musical plays) of the Dramatists Guild Inc of America. It is a very
detailed printed document running to over 45 pages promulgated by the
Dramatists Guild Inc of America as a form of agreement which it has
recommended to its members as being fair and reasonable to both
authors and producers. It is frequently adopted (often with supplements
and amendments) by authors/producers in the United States, US
territories and Canada, but rarely if ever (doubtless because of its
complexity and unfamiliarity) in relation to productions outside those
territories. It is a useful reference work as to the custom and practice on
the North American continent.
Electronic Rights
The right to reproduce a work on multimedia/CD ROM/internet or other
means of computer transmission. Also referred to as "multimedia
rights".
First Class Stage
Rights
The right to present first class live stage performances of a work. There
is no standard definition of "first class" but it is usually determined by
reference to the size, location and reputation of the theatre, the use of
professional performers and an experienced professional creative team,
possibly the size of the budget and/or the standard of stage scenery and
costumes, the length of anticipated production run and other such
factors.
Fixer
A colloquial expression for the orchestral manager, who is responsible for
engaging and fixing remuneration of the theatre orchestra on behalf of
the producer (see Section 2.6.3).
Get-In, Fit-Up and
Get-Out
As these expressions themselves indicate, they apply to the process of
getting the stage scenery, props, costumes, sound and lighting
equipment etc into the theatre; the assembly, positioning and fitting up
of same in the theatre; and, after eventual closure, the process of
removing all these items from the theatre, cleaning up and getting out of
the theatre so as to leave it as it was before get-in.
Grand Rights
The performing rights in a dramatico-musical work.
Hold-Backs
Arrangements whereby authors and other copyright owners agree to
"hold-back" on releasing certain reserved rights for a specified period
whilst the grantee of other rights is exploiting those other rights. An
example would be for an author to agree not to release amateur
performance rights or motion picture rights without the producer's
consent whilst the producer has the right to present professional
performances, or not to release music publishing rights before the
producer has put out a cast album.
© D Michael Rose
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
“So, you wanna’ be a Producer?!”
Section 1.1 (Page 4 of 8)
A THEATRE PRODUCER’S GLOSSARY
House Seats
An allocation of seats for each performance at the theatre which, by
arrangement between producer and theatre manager, are specially
reserved for disposal by the producer to persons connected with the
show, and friends and associates. House seats are usually released to
the box office for sale, if not disposed of by or under permission of the
producer at least 48 hours before each performance. The producer may
put one or two pairs of house seats for each performance at the disposal
of favoured individuals, such as author, composer, and possibly certain
privileged members of the creative team. It is usual to require all house
seats to be paid for at regular box office prices even if used by the
producer himself, so that royalty holders and investors are not
disadvantaged.
Library Agent
An appointed agent for the sale of theatre tickets who is allocated a
block of tickets for a specified booking period, sometimes on credit
terms or on sale or return, and who is not required like other retailers to
purchase tickets for cash over the counter or otherwise on an ad hoc
basis.
Merchandising
The marketing of merchandise, featuring the title and/or logo and/or
artwork and/or characters of a show in order to enhance the sale of such
merchandise e.g. on tee shirts, coffee mugs, ashtrays, stationery etc.
Moral Rights
These comprise
(i) the right of an author not to have his/her work subjected to
derogatory treatment which may damage his/her reputation;
(ii) the right of an author to accreditation (if asserted);
(iii) the right not to be falsely accredited as author of someone else's
work and
(iv) the right to privacy in respect of certain photographs and films
made for private and domestic purposes.
Only the author has moral rights which cannot be assigned but may be
waived. Moral rights were introduced into English law in 1988, but have
been established on the continent in one form or another for many
years. Moral rights differ from and do not pass with copyright.
Motion Picture
An all-embracing expression covering audio-visual exploitation of a work
by any or all of cinematograph exhibition, television, (including cable and
satellite), and/or videogram. May also be used to include electronic
rights i.e. multi media/CD ROM/internet.
Music Publishing
Rights
In a theatrical context music publishing rights are usually reserved to
author/composer when granting the right to a producer to present a
stage musical. In this context, "music publishing" can be contractually
defined according to taste but is usually confined to:
© D Michael Rose
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Tel: 0845 218 4140. Email: [email protected].
“So, you wanna’ be a Producer?!”
Section 1.1 (Page 5 of 8)
A THEATRE PRODUCER'S GLOSSARY
Music Publishing
Rights
Cont ......
(i)
sound recordings of individual songs from the show in a non-dramatic
context;
(ii) synchronisation of musical compositions from the show with the
sound track of a motion picture;
(iii) publication of printed sheet music and
(iv) non-dramatic "small performing rights" in individual songs of the kind
administered by collection societies such as the PRS. (See "small
rights").
Opening Night
Sometimes called "press night". The first paid public performance after
the end of "previews", being the performance to which the press is
invited, which will form the basis of theatre critics' first night press
reviews.
Tickets are usually by invitation only and many are
complimentary.
Overcall
A contractual obligation on investors in a production to top up their
original investment by a specified percentage or specified amount, in the
event that the producer's budget on which s/he has based the
capitalisation of the show turns out to be an underestimate so that
additional capital is required.
Some investment contracts contain
provision for an overcall and some do not. It is obviously desirable to
avoid an overcall requirement wherever practicable since it is a
discouragement to investors if they are under an obligation to top up their
original subscription.
Per Diems
Fixed amounts payable to certain individuals, such as authors, composers
and production personnel to cover their daily subsistence expenses such
as meals, transport etc whilst working away from the place where they
live.
Previews
Public performances, sometimes purchased by charities, prior to the
official opening (press night), during which performances are still being
tested against audience reaction with a view to making any last minute
changes which may be considered to be desirable.
Production Costs
The actual capital cost of preparing a production up to the time of first
paid public performance (including a reasonable "contingency reserve").
Note that the word "costs" is interchangeable with "expenses".
Production Schedule
A timetable for preparing a production ready for opening, including dates
for matters such as casting auditions, completion of designs, completion
of costumes, stage sets and properties, advertising launch, box office
opening, commencement of rehearsals, dress rehearsal, "get - in" to
theatre, first preview and opening night.
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
© D Michael Rose
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
“So, you wanna’ be a Producer?!”
Section 1.1 (Page 6 of 8)
A THEATRE PRODUCER’S GLOSSARY
Qualifying Period
A specified number of consecutive performances (usually 21) within a
specified option period, as a criterion for a producer to "qualify" for
continuing stage rights and/or for subsidiary exploitation rights in other
media to which s/he may become entitled. Sometimes also used as the
yardstick for "merger" of rights, namely the merger of different strands
of copyright material into a composite whole in order to preclude
separate copyright exploitation of the component parts.
Recoupment
The point at which all "production costs" (i.e. the capital cost of
mounting a production up to opening) have been “recouped" out of the
surplus of box office revenue over running expenses.
It follows that "double" or "125%" or "150%" recoupment is the point at
which double or 125% or 150% (as the case may be) of "production
costs" have been "recouped" out of the surplus of box office revenue
over running expenses.
Repertory
Performances
Performances by a so-called "resident or semi-resident" stage company
under the same management as part of a repertoire of a number of
works pre-programmed for a fixed season at a fixed venue or venues.
Reproduction
A mirror-image recreation (as nearly as circumstances permit) of another
production of a particular work including the recreation of the stage
directions, designs and other production elements of the original
production.
Royalty
Strictly means remuneration for the use of copyright material. Usually
expressed as a percentage of box office receipts or other revenue but
may be a "fixed" royalty e.g. a fixed sum per performance.
Royalty Cap
A limit on the amount of weekly box office receipts on which royalties
are calculated (usually prior to Recoupment only), the excess being
sometimes referred to as "exempt" box office receipts and sometimes
merely being deferred so as to cut back in at a later stage of
profitability. See comments under definition of "Royalty Pool", the
purpose and effect of which is very much the same.
Royalty Pool
Applies where an aggregate royalty is fixed for all or a specified class of
royalty participants, to be shared between them in specified proportions
(usually pro rata to their full royalties) instead of full royalties. As in the
case of a royalty cap or deferral the purpose is to accelerate
recoupment,
© D Michael Rose
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
“So, you wanna’ be a Producer?!”
Section 1.1 (Page 7 of 8)
A THEATRE PRODUCER'S GLOSSARY
Royalty Pool Cont ....
or to delay closure of a production where it would not otherwise be
financially viable to continue, or to enable a production to be presented
where it would not otherwise be viable to present it. Sometimes the
amount surrendered by a royalty pool is merely deferred and made to
cut back in if and when the production reaches a specified level of
profitability. The effect of the pool is to spread the risk more evenly
between the producer, investors and royalty participants.
Running Expenses
The weekly running expenses from the time of the first paid public
performance (including producer's royalty and office management fees).
Again, the word "costs" is interchangeable with the word "expenses".
Sometimes also called "operating costs" or "operating expenses".
Second Class [Stage]
Rights
The right to present amateur, stock, repertory, condensed, tabloid
and/or concert version performances of a work, and includes anything
else not regarded as "first class”.
Small Rights
The right to present short live performances of individual musical
compositions from a dramatico-musical work, in a non-dramatic fashion
(i.e. without dramatic staging, costume or mime) usually in accordance
with rules of collection societies such as the PRS (Performing Right
Society) which limit such non-dramatic performances to not more than
25 minutes and not more than 25% of the whole work.
Sponsorship Deal
An arrangement whereunder a non-returnable sum of money is
contributed to the revenue of a production in return for advertising or
publicity or promotional services or special privileges relating to the
production.
Stock Performances
Broadly speaking the American equivalent of repertory performances.
Technically means performances governed by US Equity's standard form
of contract for employment of actors in productions classified as stock,
resident theatre or dinner-theatre type performances.
Subsidiary Rights
Sometimes called "secondary" or "ancillary" or "residual" rights. The
right to exploit a work in other media or in other ways, apart from [first
class] live stage performances. Thus subsidiary rights may include any
or all of (i) motion picture rights (ii) electronic rights (iii) merchandising
and commercial usage (iv) cast album and also, possibly (v) second class
stage rights if not within the principal rights granted.
© D Michael Rose
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
“So, you wanna’ be a Producer?!”
Section 1.1 (Page 8 of 8)
A THEATRE PRODUCER'S GLOSSARY
Weekly Box Office
Receipts
Amounts received each week from the sale of tickets for performances
after deducting VAT, credit card and agency commissions and certain
other specified standard deductions of a similar nature in accordance
with local theatrical practice in the territory concerned. Royalties will
often be expressed as a percentage of the box office receipts. WBOR
usually form the basis for calculation of royalties and are the principal
source of production revenue.
West End
In a theatrical context reference to a production being presented in "the
West End of London" is usually intended to mean presentation at a
theatre which is a member of SOLT (Society of London Theatre)
comprising major theatres in and around the West End of London (see
Section 2.1).
Withholding Tax
A tax which is required by law to be withheld from payment of royalties
or fees to overseas investors or service providers, unless special
exemption is obtained from the Inland Revenue. A producer who fails to
withhold tax on payments to overseas residents in circumstances where
required to do so will be responsible for paying that tax to the Inland
Revenue or other local tax authority, whether s/he gets it back from the
payee or not.
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
“So, you wanna’ be a Producer?!”
Section 1.2 (Page 1 of 3)
SETTING UP A PRODUCTION
The Role of the Producer
The role of the producer is manifold and diverse. In effect s/he will be responsible for making
arrangements for every aspect of the production in order to prepare it for presentation to the public
on stage, subsequently managing it during the course of its production run and finally making all
necessary closure arrangements. Thus his/her many functions will include:-
1.
Acquiring the rights in the basic work from author, composer, collaborators, translators
(if any), and owner of any underlying rights e.g. in a film or novel from which a play or
musical is being adapted.
2.
Engaging and commissioning any original or new writers to finish an uncompleted work
or revise one which is supposedly completed but is in need of a re-write, and acquiring the
rights in their work.
3.
Finding and hiring a suitable theatre in a suitable location, possibly after a previous tryout or workshop production.
4.
Putting together and engaging the creative team of director, choreographer, set
designer, costume designer, lighting designer, sound designer, and also orchestrator if no
acceptable orchestrations already exist. Also engaging a support team of their assistants,
supervisors and other production personnel where appropriate. Obviously in the case of a
non-musical play there will usually be no sound designer, orchestrator or sound engineer.
5.
Preparing a detailed budget relating to the estimated capital cost of mounting the
production and, separately, the weekly running expenses, with reasonable contingency
reserves. Also preparing projections as to the time it will take to reach recoupment and
break even at different levels of theatre capacity.
6.
Raising the money which may involve private finance from "angels" or loan capital or a
mixture of both and ensuring (on professional advice) compliance with Financial Services &
Markets Act 2000 regulations.
7.
Arranging the manufacture and purchase or hire of the physical assets of the production
i.e. the stage scenery and props, costumes and wigs, and any special equipment
required.
8.
Putting together and engaging the cast of performers and understudies which may
involve arranging and attending auditions.
Also, in the case of a musical, engaging
musicians, conductor and musical director.
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Section 1.2 (Page 2 of 3)
SETTING UP A PRODUCTION
The Role of the Producer
9.
Preparing a production schedule i.e. timetable for various things to be started or
completed in readiness for scheduled opening.
10.
Dealing with advertising, publicity and promotion, both in advance of opening and
during the run of the production, which may involve the commissioning of special artwork
and logo from a graphic designer.
11.
Arranging with theatre management the opening of the box office for advance
bookings, discussing and approving ticket retailing arrangements with box office
management.
12.
Arranging with printers for posters and "flyers" and other printed material such as special
programme covers and "biogs" to go in the programme.
13.
Setting up special bank accounts for the production and retaining lawyers and
accountants as appropriate.
14.
Setting up internal accounts, admin’ systems and personnel for management of the
production.
15.
Arranging and holding rehearsals, including technical and dress rehearsals, band calls
and stage management.
16.
Opening night arrangements including the printing and issue of invitations to press,
celebrities, persons connected with the production etc; and arranging any opening night
party.
17.
Arranging with theatre manager and contractors for "get-in" and "fit-up" and, eventually,
for closure and "get-out".
18.
Arranging for disposal, scrap, storage or return to hirer of the sets and costumes after
closure.
19.
Arranging with accountants for preparation of interim and final production accounts
and royalty statements, distributions to investors, payment of royalties, salaries and
other expenses during the course of the production.
© D Michael Rose
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
SETTING UP A PRODUCTION
The Role of the Producer
20.
Arranging insurance cover and considering with brokers the level of cover and extent of
insured risks required to be covered.
21.
Maintaining close consultation with the creative team during preparation and rehearsals in
relation to artistic presentation, ensuring all elements are co-ordinated and everything
ready for opening.
22.
Arranging for "house seat" disposals and return to box office of any that are unused.
23.
Arranging special preview sales to charities, attending previews, and making any last
minute changes during the course of previews in light of audience reaction.
24.
Monitoring the performances from time to time during the run of the production to
ensure quality is maintained.
25.
Arranging for any subsidiary exploitation which may be appropriate, such as
merchandising, motion picture, second class licensing, cast album, subject to having
acquired the relevant rights.
26.
Negotiating contract terms of all the above, and liaison with lawyers where
appropriate.
27.
Generally sorting out the many unforeseen problems which inevitably arise in relation to
the above, and endeavouring to keep the stage company happy and working at their best.
28.
Winding up the production after closure, and accounting to all relevant parties.
© D Michael Rose
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
“So, you wanna’ be a Producer?!”
Section 1.3 (Page 1 of 5)
KEY POINTS TO CONSIDER WHEN COMMISSIONING
OR OPTIONING A NEW PLAY OR A NEW MUSICAL
General Comments
There is a collective bargaining Agreement, operating from June 1993
between TMA (1) and the Writer's Guild of Great Britain, The Theatre
Writer's Union and the Scottish Society of Playwrights (2) which sets out
minimum terms for contracts between their respective members (other
than English Stage Company, RNT and RSC) for plays in subsidised
repertory theatre throughout the UK (but excluding West End of
London). These minimum terms may be supplemented or enlarged by
agreement between the parties. Reference should be made to the TMA
booklet for these minimum terms in relation to subsidised repertory
productions outside West End of London.
Apart from the above subsidised repertory agreement and agreements
relating to the above National Companies, there is no standard form
agreement between producer and author, so that such agreements are
subject to negotiation in each case. Much will depend on individual
circumstances, including the relative bargaining strengths and
weaknesses of the parties. Each case is different and the scope for
variation is very wide. The following key points relate to "open"
contracts of this nature.
In the case of a new work which has never been previously presented
the producer will be helping to establish the reputation of the work and
bring it to life, so as to generate revenue from future exploitation.
Therefore, unless the author is a big name and possibly even then, the
producer should be able to negotiate a better financial package in
relation to subsidiary exploitation and/or continuing financial interest
after closure of his/her initial production, than would otherwise be the
case.
Applicable to Newly
Commissioned Works
•
•
•
•
•
•
•
Lump sum advance payable by instalments against delivery of first
draft, second draft, final version etc, according to a timetable.
Advance to be recoupable (or partially recoupable) from royalties.
Any permission needed from other authors to engage new writer?
Suggest that since it is a work-for-hire based on other partially
completed work, copyright in new material should be assigned
outright to producer, in all media in perpetuity without reverter,
upon payment of final instalment of the advance. If not assigned,
but only optioned or licensed, see separate section on noncommissioned work below.
Query whether usual reservation of "music publishing rights" in
favour of the writer (applies to stage musicals only). Arguably, if
commissioned there should be no reservation.
Ensure no obligation on producer to use the new material.
Query waiver of writer's moral right to non-derogatory treatment, if
producer is to be able to use part of the new work, as distinct from
the whole, or to make any changes in it, or mingle it with that of
other writers, or have it translated into other languages.
© D Michael Rose
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
“So, you wanna’ be a Producer?!”
Section 1.3 (Page 2 of 5)
KEY POINTS TO CONSIDER WHEN COMMISSIONING
OR OPTIONING A NEW PLAY OR A NEW MUSICAL
Applicable to Option
on New NonCommissioned Work
• Length of option.
• Advance payment for option.
• Is advance to be wholly or partially recoupable from royalties?
• Is option period extendable by further advances?
If so for how
long?
• Scope of option:
•
•
•
•
• Qualifying period:
•
• Qualifies for:
•
•
•
Any territorial or other geographical restriction
on stage rights option e.g. West End, U.K,
overseas, fixed venue
Any classification restriction on stage rights
option
•
all professional?
•
first class only?
•
all live stage, including amateur?
If confined to first class, is workshop or try-out
permissible?
If confined to West End, is a pre-West End tour
permissible?
usually 21 consecutive performances (excluding
Sundays and public holidays) commencing
within option period.
widening scope of stage rights, territorially or
otherwise
acquiring subsidiary rights, and if so, what (see
below)
merger of different strands of the work into a
single whole so as not to be separately
exploitable.
• Licence or Assignment after qualifying? Which?
•
If assignment, query any geographical or rights
limitation?
•
If licence:
•
Query perpetual?
•
Query exclusive?
•
Any reverter of stage rights and if so how
does licence lapse e.g. if less than [50]
performances p.a. after a specified period
following closure of initial production?
Cont ....
© D Michael Rose
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
“So, you wanna’ be a Producer?!”
Section 1.3 (Page 3 of 5)
KEY POINTS TO CONSIDER WHEN COMMISSIONING
OR OPTIONING A NEW PLAY OR A NEW MUSICAL
Applicable to Option
on New NonCommissioned Work
•
•
Query avoidance of lapse by payment
instead?
Any reverter of subsidiary rights? If so
when? and remember to reserve preexisting contracts.
• Subsidiary Rights (subject to qualifying):
•
What subsidiaries is producer to have, if
any?
• Merchandising?
•
In theatre only or general?
• Motion Picture:
•
Cinema
•
TV
•
Video
•
Multimedia
•
“As staged” only or right to adapt?
•
Cartoon/animation rights?
• Cast album (in case of stage musical only).
• Second class stage rights? (Amateur, stock, repertory, concert).
• Foreign language rights? Right to translate?
• For how long are subsidiary rights to last? 20 years or perpetual, or
as long as stage rights?
• If subsidiary rights (or stage rights) revert or are reserved, does
producer have share in author’s or copyright owner’s subsequent
exploitation and if so what share (20%?) and for how long?
•
Applicable to both
Newly Commissioned
and NonCommissioned works
Sub-licensing:
•
•
•
•
Permissible generally?
Limited to affiliates?
Subject or not to approval?
Any approval not to be unreasonably
withheld?
•
What rights and/or territories does author
wish to reserve for him/herself?
In case of a musical, author will
invariably want to reserve “music
publishing rights” in individual songs.
General reservation of all rights not
expressly granted.
Cont ....
• Reserved rights:
•
•
© D Michael Rose
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Section 1.3 (Page 4 of 5)
KEY POINTS TO CONSIDER WHEN COMMISSIONING
OR OPTIONING A NEW PLAY OR A NEW MUSICAL
Applicable to both
Newly Commissioned
and NonCommissioned works
• Hold-Backs:
•
•
•
•
• Royalties:
•
•
•
•
•
•
• Subsidiary revenue:
•
•
• Payment procedures:
•
Non-release of any reserved stage rights
either generally or in a specified territory
Non-release of music publishing before
producer’s cast album
Non-release of any reserved motion picture
rights
Free motion picture synchronisation right?
What total percentage of Weekly Box
Office Receipts (WBOR) (6% to 8%) for
author’s copyright?
How split between various authors and
collaborators, and any new writers?
Any royalty pool or pre-recoupment royalty
cap to apply, and if so is there to be any
deferred claw back (see Section 4.6)
Any escalation by reference to recoupment
or a multiple of recoupment
Where royalties depend on recoupment
specify producer’s office management fee
and royalty in definition of recoupment
(usually management fee starts two weeks
prior to first rehearsal and ends two weeks
after closure)
Any other royalty limitations e.g. bad
debts, “bus and truck” company share
provision.
How are profit shares (i.e. net revenue) to
be split between author and producer
relating to various different categories of
subsidiary rights?
How long sharing to continue?
Royalties
•
in UK within 7 days after end of each
week
•
overseas within 14-30 days after end
of each week/month
•
accompanied by copy box office
returns.
Cont ....
© D Michael Rose
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
“So, you wanna’ be a Producer?!”
Section 1.3 (Page 5 of 5)
KEY POINTS TO CONSIDER WHEN COMMISSIONING
OR OPTIONING A NEW PLAY OR A NEW MUSICAL
Applicable to both
Newly Commissioned
and NonCommissioned works
•
•
•
•
•
Subsidiary Revenue
•
motion picture within 14 days of
receipt
•
otherwise quarterly within 60 days
after end of each quarter
•
accompanied by financial statements.
Verification by inspection of accounts
Recoupment accounts, interim and final
production accounts
Production accountants
Withholding tax provisions.
• Approval/consultation rights.
• Billing credits and biogs.
• Author’s attendance rights, accommodation, travel expenses and per
diems.
• Producer to have artistic control.
• Warranties:
•
•
• Moral Rights:
•
by owner
•
as to title
•
no obscene or defamatory content
by producer.
Is waiver needed? E.g. if changes are
contemplated.
This section has been specially prepared for Stage One by D. Michael Rose of Tarlo Lyons, Solicitors.
© Copyright reserved to D Michael Rose
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
KEY POINTS TO CONSIDER IN CREATIVE
TEAM CONTRACTS
Director, Choreographer (if any), Set Designer, Costume Designer, Lighting Designer, Sound
Designer (if any), Orchestrator (if any).
Standard Collective Agreements
Collective bargaining agreements exist for all members of the creative team (other than
orchestrator and sound designer) setting out minimum terms agreed between
SOLT/TMA/BECTU/Equity/MU on behalf of their members for both West End and elsewhere in the
UK. These minimum terms (where applicable) should be incorporated expressly into individual
contracts which, however, may supplement or enlarge the minimum terms by agreement between
the parties. Copies are obtainable from SOLT or TMA.
Key Points:
• Contracting Parties
• Repro and/or subsidiary
rights or not? If so
• If Repro Rights apply
• Tie in to Production
Schedule
• Description of Services
and Duties
• Assistants and support
staff
• Exclusive copyright licence
• Remuneration
• individual personally or
• lend-out company, plus inducement letter (guarantee) from
individual.
• Query option to use in other stage productions
• Query option to use in other media exploitation?
• Options for future engagement
• Appointment of deputies
• Approval of deputies and/or nomination rights
• Any deduction from principal’s royalty of any part of deputy’s
remuneration?
• Query need for changes in material. Moral rights waiver?
•
•
•
•
•
•
•
•
•
•
•
For initial production
Delivery of copyright record to producer
Exclusive availability from first rehearsal date
Quality checks after opening
Services for future repros.
What is a producer to
• provide?
• pay for?
Consider assignment as alternative
May pay more for assignment
Assignment may be resisted
Termination and Reverter (or Lapse).
Fees advance
• Amount?
• How payable? Instalments? E.g. 1/3
on signature, 1/3 on first rehearsal,
1/3 after opening
• query recoupable from royalties in
whole or in part?
• Royalty
• For initial production
• For repros
Continued ....
© D Michael Rose
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
“So, you wanna’ be a Producer?!”
Section 1.4 (Page 2 of 2)
KEY POINTS TO CONSIDER IN CREATIVE
TEAM CONTRACTS
• Remuneration Cont ....
• Any major and minor
territory differentials
• Subsidiary exploitation
• Expenses and ownership of
models, samples, sketches,
drawings.
• Inspection and verification
of accounts if remuneration
dependent on recoupment.
• Payment procedures and
accounting
• Billing credits
• House seats (where
controlled).
• Warranties
• Query need to incorporate
SOLT/TMA/BECTU/Equity/M
U standard terms
• Retention of overall artistic
control by producer
• Royalty limitations
Caps
Pools
Deferrals
Waivers
Bus & truck - “company share” in
lieu of WBOR
• Bad debts relief.
• in order to determine • scope of rights
• rate of remuneration.
• at remuneration to be arranged or fixed in advance.
•
•
•
•
•
•
•
•
•
for WBOR royalties
for share of subsidiary revenue.
Size, prominence, layout
Biographies.
• By owner
• By creative team member.
• refer to relevant standard booklet for details.
• Need for consultation by team among themselves and with the
producer.
This section has been specially prepared for the TIF by D. Michael Rose of Tarlo Lyons, Solicitors.
© Copyright reserved to D Michael Rose
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
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Section 2.1 (Page 1 of 4)
THE SOCIETY OF LONDON THEATRE (SOLT)
1.1 Introduction
The Society of London Theatre was formed in 1908 by the famous
Actor Manager, Sir Charles Wyndham. Originally named The Society
of West End Theatre Managers, it has changed its name to The
Society of West End Theatre, and latterly, The Society of London
Theatre, to reflect an increasingly wider London membership. The
Society is colloquially referred to as ‘SOLT’.
The Society represents the interests of the producers, owners and
managers who work in more than 50 of London’s commercial and
state-supported theatres. Theatres currently represented in SOLT
membership are:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
“So, you wanna’ be a Producer?!”
Adelphi
Noel Coward
Aldwych
Apollo
Apollo Victoria
Arts
Barbican (Barbican, Pit)
Cambridge
Coliseum
Comedy
Criterion
Dominion
Donmar Warehouse
Drury Lane, Theatre Royal
Duchess
Duke of York's
Fortune
Garrick
Gielgud
Shakespeare’s Globe *
Haymarket, Theatre Royal
Her Majesty’s
London Apollo Hammersmith
London Palladium
Lyceum
Lyric
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
National (Olivier, Lyttelton,
Cottesloe)
New Ambassadors
New London
Old Vic
Open Air *
Palace
Peacock
Phoenix
Piccadilly
Playhouse
Prince Edward
Prince of Wales
Queen’s
Royal Court
Royal Opera House
Sadler’s Wells
St Martin's
Savoy
Shaftesbury
Novello
Vaudeville
Victoria Palace
Whitehall
Wyndham's
Section 2.1 (Page 2 of 4)
* Seasonal
THE SOCIETY OF LONDON THEATRE (SOLT)
1.3 SOLT Publications
Publications include:
• the Official London Theatre Guide - the definitive fortnightly
listing of productions in SOLT member theatres
• the Official London Theatre Guide Online – the world’s leading
London
theatre
website,
constantly
updated
(www.OfficialLondonTheatre.co.uk)
• the Theatre List, a detailed fortnightly-updated list of current
shows and forthcoming shows aimed at theatre professionals,
critics, and committed theatregoers
• the Access Guide to London’s Theatres detailing access and
equipment facilities and details of concessionary price/s
• the Box Office Data Report – annual summary and analysis of the
previous years’ box office figures, published each Spring
• The Wyndham Report, After Wyndham – a continuing series of
research and campaigning reports into key issues affecting
London theatre
• the West End Theatre Audience Report – the result of a major
research project by MORI into the profile of current theatre
audiences.
1.4 SOLT Services
Services include:
• tkts Ticket Booths in Leicester Square and Canary Wharf DLR
station provide on the day sales to personal callers
• Fax Back Service - dial a number and receive a seating plan
• Newspaper listings – comprehensive theatre listings compiled
currently for The Sunday Times, The Observer, The Daily Mail,
The Mail on Sunday and smaller syndicated publications
• First Night List and Photocall Diary – two SOLT-administered
services to avoid publicity clashes
• Theatreland Car Parking Scheme - special evening rates for
theatre-goers at selected Westminster City Council Masterpark car
parks
• Professional forums – SOLT-chaired discussion and action groups
open to Members and their colleagues, e.g. SOLT Marketing
Group.
“So, you wanna’ be a Producer?!”
Section 2.1 (Page 3 of 4)
THE SOCIETY OF LONDON THEATRE (SOLT)
1.5 SOLT Promotional
Activities
Promotional activities include:
• two big promotions and audience development initatives during
the year:
• i) Get Into London Theatre in January which features offers on
many West End shows (www.getintolondontheatre.com)
• ii) Kids Week in the West End, an annual late-summer audience
development initiative featuring ‘Kids Go Free’ ticket offer and a
range of events, tours and parties (www.kidsweek.co.uk)
• Theatre Tokens - a nationwide gift token scheme, on sale at
theatres, most branches of WH Smith, by telephone on 0870 164
8800 and online at www.theatretokens.com.
• Travel Trade Conference/Exhibitions – representing London
theatre at shows including World Travel Fair and British Travel
Trade Fair
• The Laurence Olivier Awards – the annual celebration of
excellence on the London stage.
1.6 To become a Producing
Member of SOLT
In order to apply for membership a producer should contact SOLT in
the first instance, and will then need to seek two Board members
who are willing to propose and second the application. Subject to
Board approval the application will then go to a ballot of the whole
membership where a simple majority will secure election. A producer
will need to place four deposits with the LTC (see section 2.3) and
establish a good track record of meeting obligations to Equity
members before being granted ‘non-deposit’ status.
1.7 Benefits of Membership
include:• standard contracts, minimum terms and conditions for employees
with entertainment unions Equity, M.U. and BECTU
• free legal, industrial and professional advice from in-house staff
on all aspects of theatrical management
• advertising opportunities at preferential rates in the London
Theatre Guide (distributed fortnightly to 175,500 readers)
• publications and promotion initiatives
• a public affairs and lobbying service from in-house staff and a
concerted ‘national’ press voice
• access to the Society’s Angels list
• regular circulations on current management information and
issues, e.g. industrial relations, employment law
• national lobbying for theatrical causes
• eligibility to participate in the Laurence Olivier Awards.
“So, you wanna’ be a Producer?!”
Section 2.1 (Page 4 of 4)
THE SOCIETY OF LONDON THEATRE (SOLT)
1.8
1.9
© SOLT
SOLT shares offices and some staff with the TMA (see Section 2.2)
Address:
32 Rose Street
Covent Garden
London WC2E 9ET
Tel:
020 7557 6700
Fax:
020 7557 6799
Email:
[email protected]
Website:
www.officiallondontheatre.co.uk
SOLT provides financial support annually to Stage One. In addition,
SOLT jointly established the Bursaries for New Producers with Stage
One and provides matching funding for the scheme.
“So, you wanna’ be a Producer?!”
Section 2.2 (Page 1 of 4)
THE THEATRICAL MANAGEMENT
ASSOCIATION (TMA)
2.1 Introduction
Formed by Sir Henry Irving in 1894, Irving’s first Presidential speech
introduced TMA as “[protecting] ... the interests of theatrical managers, to
resist encroachments, and to obtain redress of grievances. The purpose
for which we have met here today must, I am quite sure, commend itself
to all. We are simply forming the nucleus of a protective body, so that we
can from a central point look after the interests of theatrical managers
throughout the country”.
TMA is the UK-wide sister organisation of The Society of London Theatre
and has members in England, Northern Ireland, Scotland and Wales.
TMA Statement
The Theatrical Management Association represents the essential interests
of the performing arts in the UK.
TMA is dedicated to:• promoting excellence in the production, presentation and management
of live performance
• supporting its members in all aspects of their professional activities
• strengthening links between members for the exchange of ideas,
information and expertise
• encouraging recognition of the vital role of the performing arts.
TMA represents building-based theatres:
•
•
•
•
•
subsidised, producing houses
presenting / touring houses
commercial non-subsidised repertory
local authority venues
community theatres
and organisations:
• touring companies - subsidised and commercial
• opera & ballet
• theatre for children, Theatre in Education & Young Peoples’ theatre.
© TMA
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Section 2.2 (Page 2 of 4)
THE THEATRICAL MANAGEMENT
ASSOCIATION (TMA)
A cross-section of its membership (nearly 400 members) is:•
•
•
•
•
•
•
•
•
•
•
•
2.2 Principal Activities of
TMA
2.3 TMA Training
© TMA
Almeida Theatre, London
Birmingham Royal Ballet
Bristol Old Vic Theatre
Bush Theatre, London
Live Nation
Chichester Festival Theatre
Churchill Theatre, Bromley
Derby Playhouse
Hampstead Theatre, London
The Hiss & Boo Company
Michael Codron Plays Ltd
Midlands Arts Centre (mac)
•
•
•
•
•
•
•
•
•
•
•
•
New Theatre, Cardiff
Palace Theatre, Watford
QDOS
Rambert Dance Company
Riverside Theatre, Coleraine
Scottish Opera
Tara Arts
Complicite
Theatre Royal, Norwich
Theatre Royal, Plymouth
Unicorn Theatre for Children
Welsh National Opera
standard terms and conditions negotiated with the entertainment unions
legal, industrial and management advice from in-house staff
lobbying and campaigning
nation-wide Awards scheme to promote regional theatre
Annual Conference for members as well as social events for networking
opportunities
• the opportunity to participate in the nation-wide Theatre Tokens
scheme.
•
•
•
•
•
• training policy activities across the sector, from senior arts management
training to customer service skills for FOH staff, using courses, local
networks, mentoring etc
• The Druidstone Essentials of Marketing Course - TMA’s long-running and
sought-after introduction to arts marketing employs experienced
marketeers to train those starting out on an arts marketing career
• Walking the Tightrope - Management for Senior Arts Marketing staff
• Making
Tracks
a
two
day
residential
course
for
managers/administrators of dance, drama, opera/music-theatre and
building based companies planning to develop their national touring
• ad-hoc seminars and courses - recent topics have included box office
and marketing, data protection, contract and copyright law, direct
marketing, group sales.
“So, you wanna’ be a Producer?!”
Section 2.2 (Page 3 of 4)
THE THEATRICAL MANAGEMENT
ASSOCIATION (TMA)
2.4
TMA Website and
Publications
TMA’s website at www.tmauk.org has steadily been developing since its launch in
May 2000. The public part of the site is accessible to anyone and it contains
several facilities which are of interest to new producers: • the latest Pay Rates for TMA’s agreements with the theatrical unions
• an Events and Courses section
• an informative page on TMA’s quarterly magazine Prompt and details of
subscriptions
• a list of TMA members with websites
• a list of arts related website addresses
• a job vacancy service for administration and management posts
•
information on the TMA’s Theatre Awards.
The second part of the site is the password-protected area for TMA members,
which is substantially bigger.
All the TMA circulations, or Newsletters,
automatically go onto the site and previous issues are archived. In addition in
this section of the site there are:
• issues of Legal Update
• Industrial Relations information and news
• the full searchable TMA Membership Directory
• Tour Booking facilities, with availability for shows and venues
• Frequently Asked Questions
• index of downloadable documents.
Prompt - TMA’s quarterly journal produced for all those involved in theatre
management includes a wide range of articles, regular audience statistics and
TMA’s ongoing business survey.
2.5
To become a
Producing Member
of the TMA
Applications are eligible from any producing company or organisation provided
they:• are involved in whole or in part in the presentation of performing arts
• can satisfy TMA’s Council as to their legal and financial probity, and
• subscribe to the aims of the Association.
TMA members are given 21 days notice in which to raise any objections to the
application, after which membership is granted.
“So, you wanna’ be a Producer?!”
Section 2.2 (Page 4 of 4)
THE THEATRICAL MANAGEMENT
ASSOCIATION (TMA)
2.6 TMA Membership fees
The basic membership fee for Commercial Producers is £233 per annum
plus VAT. In addition there will be a variable subscription fee charged
according to the number of weeks touring undertaken by productions
promoted directly by or managed through your company. The variable
subscription fee applied to a full or split week of a tour of a play will be
£25.00 plus VAT; for a musical the variable subscription fee applied will be
£40.00 per week plus VAT. Tours of one-night stands will not incur any
variable fee.
2.7 Benefits of Membership
include:• standard contracts, terms and conditions for employees
• free industrial, professional and legal advice from in-house staff
• national lobbying and campaigns in the UK and in Europe on issues that
affect the theatre industry
• Prompt, the TMA’s lively and informative quarterly journal, enclosed
with regular circulations
• audience survey figures throughout the year and summarised annually
• eligibility for TMA’s Theatre Awards
• an annual Conference and regular networking opportunities to address
current concerns and catch up with other theatre professionals
• custom-designed training courses
• monthly circulations on current management information and issues,
e.g. health & safety, industrial relations, employment law
• online Membership Directory with contact details of every member.
2.8
TMA shares offices and some staff with SOLT (see Section 2.1)
© TMA
ADDRESS:
32 Rose Street
Covent Garden
London WC2E 9ET
Tel:
020 7557 6700
Fax:
020 7557 6799
Email:
[email protected]
Website:
www.tmauk.org
“So, you wanna’ be a Producer?!”
Section 2.3 (Page 1 of 2)
LONDON THEATRE COUNCIL (LTC)
3.1 Introduction
The LTC was set up in 1935. It is managed by SOLT and
Equity and its principal activities are:
i)
ii)
3.2 LTC Registration
To arbitrate on any disputes arising from any of the
SOLT/Equity Agreements
To ensure that any producer who is not a “non deposit”
member of SOLT places the required deposits with the
LTC for each production s/he presents under the
SOLT/Equity Agreements so that all the Equity members
so contracted are properly paid.
All producers who are intending to produce at SOLT member
theatres and are not members of SOLT must register with the
LTC before any Equity members can be contracted and before
the standard contract forms will be issued by Equity.
Registration forms can be obtained from the SOLT offices,
where the LTC is administered, and the current registration fee
is £225.
EARLY LTC REGISTRATION IS ADVISED.
3.3 LTC Deposits
All producers who are not “non deposit” members of SOLT
must place deposits at least 14 days before the production is
scheduled to begin rehearsals. The reason for depositing is to
assure SOLT and Equity of financial integrity when contracting
employees. The deposit covers rehearsal salaries and three
weeks’ performance salaries, N.I. and VAT for:
•
•
•
•
•
Performers & Stage Managers
Choreographers & Assistant Choreographers
Directors & Assistant Directors
Designers & Assistant Designers
Fight Directors.
Depositing signals an intention to act in a ‘responsible employer
manner’ so that if your production should fail in any way, the
deposit you have made will be used to pay back those
employees covered by your deposit.
To obtain copies of the deposit form call SOLT. A completed
form has been included as an illustration. The LTC will accept
deposits either by cheque or by bank guarantee. Please allow
time for the cheque to clear.
Cont .....
© SOLT
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Section 2.3 (Page 2 of 2)
LONDON THEATRE COUNCIL (LTC)
3.3 LTC Deposits
Should a bank guarantee be used, it is essential to allow plenty
of time, as it can take 8 weeks or more to set up and process,
and all wording has to be agreed. A standard draft wording is
available from SOLT.
If paying by bank guarantee, the
registration fee is £675.
IT IS ESSENTIAL TO MAKE SURE THAT THE FORM IS
RETURNED TO THE LTC WITH THE CHEQUE OR GUARANTEE
AT LEAST 14 DAYS BEFORE THE REHEARSALS START.
© SOLT
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Section 2.4 (Page 1 of 2)
THE THEATRE COUNCIL (TTC)
4.1 Introduction
The TTC was set up in 1942. It is managed by the TMA and
Equity and its principal activities are:
i)
ii)
4.2 TTC Registration
To arbitrate on any disputes arising from any of the TMA/
Equity Agreements
To ensure that any producer who is not a full member of
the TMA places the required deposit with the TTC for
each production he or she presents under TMA/Equity
contracts so that all the Equity members so contracted
are properly paid.
All producers who are intending to use TMA/Equity Agreements,
which TMA members insist upon, must register with the TTC
before any Equity contracts can be issued. Registration forms
can be obtained from the TMA, where the TTC is administered,
and the current registration fee is £225.
EARLY TTC REGISTRATION IS ADVISED.
4.3 TTC Deposits
All producers who are not full members of the TMA, who want to
use TMA/Equity contracts, must place deposits with the TTC at
least 14 days before the production is due to start. The reason
for depositing is to assure TMA and Equity of financial integrity
when contracting employees. The deposit covers rehearsal
salaries and a maximum of three weeks’ performance salaries,
N.I. and VAT for:
•
•
•
•
•
Performers & Stage Managers
Choreographers & Assistant Choreographers
Directors & Assistant Directors
Designers & Assistant Designers
Fight Directors
Depositing signals an intention to act in a ‘responsible employer
manner’ so that if your production should fail in any way, the
deposit you have made will be used to pay back those employees
covered by your deposit.
To obtain copies of the deposit form call the TMA. A completed
form has been included herewith as an illustration. The TTC will
accept deposits either by cheque or by bank guarantee. Please
allow time for the cheque to clear.
Cont .....
© TMA
“So, you wanna’ be a Producer?!”
Section 2.4 (Page 2 of 2)
THE THEATRE COUNCIL (TTC)
4.3 TTC Deposits
Should a bank guarantee be used, it is essential to allow plenty
of time, as it can take 8 weeks or more to set up and process,
and all wording has to be agreed. A standard draft wording is
available from the TMA.
IT IS ESSENTIAL TO MAKE SURE THAT THE FORM IS
RETURNED WITH THE CHEQUE OR GUARANTEE AT LEAST 14
DAYS BEFORE THE PRODUCTION STARTS.
“So, you wanna’ be a Producer?!”
Section 2.4 (Page 1 of 2)
EQUITY - STANDARD AGREEMENTS
5.1 Introduction
Equity represents performers and stage managers (including opera and
ballet), directors, set designers, costume designers, lighting designers,
choreographers and fight directors. SOLT and the TMA each negotiate
separate collective standard agreements with Equity for each of the above
(but curiously enough, not for sound designers). These include the
minimum terms and conditions for employment and the minimum pay
scales applicable.
5.2 SOLT/Equity
Agreements
Copies of all the Agreements are available from the SOLT office, and need
to be studied carefully before contracting anyone. The single most
important Agreement is the performers and stage management
Agreement. Particular attention should be paid to working hours, which
vary before, during and after the production week, and are different to the
TMA/Equity Agreement working hours.
Also look carefully at the
cancellation of production and the minimum length of employment clauses,
plus the holiday payment clauses. Minimum stage management staffing
and understudy provisions also need careful consideration.
(When
completing the standard SOLT/Equity form of contract, particular care must
be given to the notice clauses and options therein, and also the wording of
any special individual artist and stage management get out notice clauses.)
Beware of Christmas week and bank holidays - they are expensive, even
bearing in mind the cut off. Also do not forget that, if the production starts
in a subsidised theatre and if the producer has an option or other
agreement to move the production to the West End, then (for up to 3
weeks) the artists' rehearsal fees have to be 'topped up' by the difference
between the rehearsal salary actually paid by the subsidised theatre and
the salary that would be due under the West End Agreement.
Directors, designers and other Equity members of the creative team as in
5.1 above, have standard forms of contract that must be used. Particular
attention should be paid to who owns the copyright and what rights the
producer acquires (or doesn’t) for further exploitation of the work. See
Section 1.4 Creative Team Contracts.
5.3 TMA/Equity
Agreements
Copies of all the Agreements are available from the TMA offices, and need
to be studied carefully before contracting anyone. Because of the different
needs of the TMA membership there are two different agreements for
performers and stage managers. Commercial producers will principally use
the TMA/Equity Commercial Theatre Agreement (often referred to as the
“touring” contract). A knowledge of the TMA/Equity Subsidised Repertory
Agreement may be useful for producers starting their productions at
subsidised producing theatres.
The TMA/Equity Commercial Theatre Agreement varies in many respects
for both performers and stage managers from the SOLT/Equity Agreement.
It is therefore important to read it carefully - especially the working hours
and holiday pay clauses. The many levels for stage management and
understudies need careful consideration, as does the difference between
“subsistence” and “touring allowance”. There is no minimum length of
employment, but the notice clause needs careful reading.
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Section 2.4 (Page 2 of 2)
EQUITY - STANDARD AGREEMENTS
5.4 Queries on
Standard
Contracts
In the case of any questions on contracts members are strongly
advised to call the SOLT/TMA Industrial Officer and not Equity, whose
interpretation of some clauses may be different from the Managers’.
5.5 Pre West End
Tours
Pre West End tours can be contracted for up to 8 weeks on
SOLT/Equity contracts.
However, before issuing this contract,
producers should take care to check that they will be able to fulfil the
minimum length of employment under this contract, which requires 8
weeks employment for productions that do not come into the West End
and 6 weeks for productions that do open in the West End. The
minimum employment terms include rehearsals. In the event that a
production starts with a subsidised producing company, the minimum
length of employment can be critical and producers may be best
advised, particularly if the West End theatre has not been contracted,
to use the TMA/Equity Commercial Theatre Agreement and take an
option on the Artists’ services for the West End.
© SOLT/TMA
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Tel: 0845 218 4140. Email: [email protected].
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Section 2.5 (Page 1 of 1)
MUSICIANS’ UNION - STANDARD AGREEMENTS
6.1 Introduction
The Musicians’ Union represents all musicians and has
agreements with both SOLT and the TMA.
6.2 MU Agreements
Other than the substantial differences in the minimum
applicable in the West End compared to the Regions, the
agreements are fairly similar. Very careful consideration should
be given to the clauses on working hours and overtime, as
musicians are basically paid on a three-hour session rate. Also
“doubling” and “trebling” increases costs. The definition of
once and twice nightly needs careful reading, as the time
periods are quite restrictive.
6.3 Engaging Musicians Fixers
It is normal to engage orchestras through a “fixer” and this is
strongly recommended as they will provide accurate budgets as
well as issuing contracts, administering and calculating the pay
of the musicians throughout. Fixers are paid a weekly fee by
the producer.
6.4 Queries on Standard
Contracts
Again, all members’ queries on the Musicians’ Union contracts
should be to the SOLT/TMA Industrial Officer.
6.5 MU Deposits
Please note that the Musicians’ Union sometimes requires
deposits from new producers, although there is no formal
arrangement through the Theatre Councils.
© SOLT/TMA
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Section 2.7 (Page 1 of 1)
BECTU - STANDARD AGREEMENTS
7.1 Introduction
SOLT and the TMA each have separate agreements with
BECTU, which represents all the technical backstage and front
of house staff. Because these staff are normally employed by
the theatres, producers do not have to employ them, except in
the case of wardrobe staff.
7.2 BECTU Agreements
The Agreements need attention, particularly the clauses
regarding levels of crewing, hours and pay.
BECTU members’ standard terms of employment are for a 5day week (40 hours for SOLT and 39 for TMA). Thus cover is
required for the sixth day or overtime has to be paid. The
major difference between the SOLT/BECTU and the
TMA/BECTU Agreements that will directly affect producers is
the get-out clauses, which on tour are very expensive.
Producers will also be affected by manning levels and bank
holidays, which are paid at double time, plus a day off in lieu i.e. treble time! Sunday working is also expensive and can be a
significant cost factor when touring larger productions that
require Sunday get-ins.
7.3 Queries on Standard
Agreements
Again, all members’ queries on the Agreements should be to
the SOLT/TMA Industrial Officer and not the Union.
“So, you wanna’ be a Producer?!”
Section 2.7 (Page 1 of 1)
WRITERS’ GUILD AGREEMENT
8.1
There are no standard agreements for commercial productions
between the Writers’ Guild and either SOLT or the TMA. All
authors’ contracts are separately negotiable on a production-byproduction basis.
See Section 1.2 on commissioning and
optioning plays and musicals.
8.2
There are, however, agreements within the subsidised theatre
with the Writers’ Guild for new work, and producers transferring
productions that have originated in the subsidised sector may
have to inherit all or some of the terms of these agreements.
©SOLT/TMA
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Section 2.8 (Page 1 of 1)
So, you wanna’ be a Producer?!”
SCHEDULE OF SOLT/TMA AGREEMENTS
Parties
Agreement
Date
SOLT Agreements
SOLT/BECTU
SOLT/Equity
SOLT/Equity
SOLT/Equity
SOLT/M.U.
SOLT/Equity
SOLT/BECTU
West End Theatre Choreographers
West End Theatre Designers
West End Directors
SOLT/M.U.
West End Theatre Performers and
Stage Management
1997
2003
1989
2006
2005
2002
TMA Agreements
TMA/BECTU
TMA/Equity
TMA/BECTU/Equity
TMA/Equity
TMA/Equity
TMA/Equity
TMA/M.U.
TMA/Equity
TMA/Writers Guild
TMA/BECTU
Choreographers
Theatre Designers
Theatre Directors
Subsidised Repertory
Commercial Theatre
TMA/M.U.
Overseas Touring
TMA/Writers’ Guild of G.B/Scottish
Society of Playwrights
2006
2004
1999
2002
2003
2006
2004
2002
1993
Joint Agreements
SOLT/TMA/Equity
Opera Singers
Opera Guest Artists
Opera and Ballet Stage Management
Ballet and Dance
Opera Producers and Directors
Fight Directors
1991
1995
1991
1994
2006
1995
Copies of all these agreements can be obtained from SOLT and the TMA and are priced £3 per copy.
Cheques for SOLT Agreements should be made payable to West End Theatre Managers. Cheques
for TMA Agreements should be made payable to the Theatrical Management Association.
Contact the Assistant to the Industrial Officer on 020 7557 6700 to purchase copies of agreements.
© SOLT/TMA
“So, you wanna’ be a Producer?!”
Section 2.9 (Page 1 of 1)
SOLT - CURRENT UNION RATES
SOLT/Equity West End Theatre
Designers
(from April 28, 2003)
SOLT/BECTU
Sets
a Major Musicals
3,944.00
b Musicals
3,069.00
c Straight Plays/Small Musicals
2,281.00
d Weekly fee
119.00
Grade
Costumes
a Major Musicals
2,632.00
b Musicals
2,061.00
c Straight Play/Small Musicals
d Weekly fee
92.00
£
3
4
5
6
8
1,535.00
9
Lighting
a Major Musicals
1,976.00
b Musicals
1,535.00
c Straight Plays/Small Musicals
1,140.00
d Weekly fee
71.00
Expenses
per day
35.05
overnight
(from October 2, 2006)
Minimum Basic Rates Per Show
10
Hours
per show
Console Operator
Sound Operator
Chargehand
Electrician
Chargehand Stage
Asst Console
Operator
Follow-spot Operator
Swing Showman
Showman/Super
Dresser
Performance Fireman
Head Bar Person
Attendant Cleaner
Performance Cashier
Bar Person
Checktaker
Usherette - no
commission
Cloakroom Attendant
Usherette - with
commission
3
3
1-nightly
per show
2-nightly
per show
£ 28.20
28.20
£ 51.72
51.72
3
3
3
3
3
3
3¾
5
3¾
3¾
3¾
3¾
3¾
28.20
28.20
27.38
27.38
27.38
25.98
32.45
38.81
22.83
22.83
22.83
22.24
22.24
51.72
51.72
50.20
50.20
50.20
47.64
49.76
50.45
36.52
36.52
36.52
35.58
35.58
3¾
3¾
3¾
22.24
22.24
19.91
35.58
35.58
31.88
78.88
SOLT/Equity West End Theatre Directors
Clause No.
1.6.2
2,662.00
1.7
114.00
(from 1 August 2006)
Description
£
Minimum initial fee -
Hourly Paid Staff
Wardrobe Daytime Assistant
Production Worker
Skilled Production Worker
£8.66
8.66
9.12
Subsistence
SOLT/Equity West End Theatre
Choreographers
(from June 1, 2005)
Minimum Basic Weekly Rates
Clause No.
17(a)(i)
(ii)
572.00
(iii)
114.00
17(b)(i)
1,671.00
(ii)
97.00
(iii)
59.00
17(c)
Minimum fee for musicals
Additional weeks
£
2,858.00
Minimum royalty
Grade
1
2
Minimum fee for plays
Additional sessions
Minimum royalty
3
Small amount of choreography
(per session)
97.00
AC Appendix 5(d)
102.00
4
5
6
7
Chief Electrician
Master Carpenter
Wardrobe/Wig Master/Mistress*
Deputy Chief Electrician
Deputy Master Carpenter
Box Office 1st Assistant
Wardrobe/Wig Master/Mistress*
Deputy Wardrobe/ Wig
Master/Mistress*
Chargehand Electrician
Chargehand Stage
Box Office 2nd Assistant
Deputy Wardrobe/Wig
Master/Mistress*
1st Grade Electrician
1st Grade Stage
Dayman (Trainee)*
Full-time Wardrobe Assistant
Housekeeper
Stage Door Keeper
Full-time Fireman
Box Office Clerk/Telephonist
Cleaner
Hours
40
40
40
40
40
40
40
40
£
477.94
477.94
477.94
407.84
407.84
407.84
407.84
407.84
40
40
40
40
376.19
376.19
376.19
376.19
40
40
40
40
36
40
40
40
24
365.21
365.21
346.40
346.40
311.78
317.03
310.42
310.42
177.21
Front-of-house Staff – Additional Payments
Programme Sellers
Cloakroom Attendants
Bar Person
Pick-ups
Per week
Per show
£0.69
0.51
0.75
2.22
*See notes in Section 23 of Agreement
Section 2.9 (page 2 of 2)
SOLT - CURRENT UNION RATES
SOLT/EQUITY WEST END THEATRE
PERFORMERS AND STAGE MANAGEMENT
Clause
3.1.1
4.2.1
Apdx 1
Apdx 2
Apdx 3
3.1.2
3.1.3
Description
SOLT/MUSICIANS’ UNION
(from October 1, 2006)
(from January 8, 2007)
£
Clause
Description
MINIMUM SALARIES
Minimum salary – once nightly
ASM – once nightly
DSM – once nightly
SM – once nightly
CSM – once nightly
381.13
381.13
476.40
533.58
571.69
5(a)
Min. weekly salary
5(c)
Min. cash increase
Performer/ASM – twice nightly
DSM – twice nightly
SM – twice nightly
CSM – twice nightly
446.62
558.29
625.29
669.95
5(e)(i)
Doubling
Min. weekly salary
5(e)(ii)
Trebling
Min. weekly salary
Booth Singers – session fee
Pension contributions – max.
employer’s contribution
ADDITIONAL PAYMENTS
Movement of scenery, per perf.
Flying
47.64
33.34
7(g)
On Stage etc.
£
O/N
T/N
683.34
820.24
28.80
O/N
T/N
O/N
T/N
O/N
T/N
785.84
943.27
888.34
1,066.31
8.39
6.15
2.80
1.60
39.40
Additional costume
7(i)
Porterage
A
B
32.44
24.04
(max 48.08)
16.21
C
5(d)
25.50
Pension
Contribution
3.1.5
3.6.2.3
3.6.3.1
3.6.7
4.1.3
4.7.5.1
2.3.1
2.3.2
2.12.1.4
2.12.1.6
3.5.1.3
4.7.1
4.7.1
2.2.7
2.3.1
2.3.2
2.5.1.2
2.5.2.2
2.6.2.1
2.6.2.3
3.1.1.2
3.1.1.3
3.4.1
2.12.1.5
2.12.3.3
Head Boy/Girl
Understudy responsibility payments
- each leading role
- up to two non-leading roles
Understudy performance payments
- leading role
- non-leading role
Swing, additional responsibility
Performer with stage management
duties, per week
Appearance on stage
ALLOWANCES
Touring allowance
Subsistence allowance (as per
TMA/Equity SR Agreement)
Meal allowance
Sunday travel meal allowance
Costume call meal allowance
Lodging allowance, per night
Lodging allowance, per week
CEILINGS
Failure to produce
Touring allowance – cut off salary
Subsistence – cut off
Public holiday – ceiling salary
Christmas holiday – ceiling salary
Illness payments – ceiling salary
Illness payments – cut off (higher)
Illness payments – cut off (lower)
Ceiling salary during rehearsals
Cast replacement – ceiling salary
Overtime ceiling
INSURANCE
Travel insurance premium cover
Air travel insurance cover
Air travel insurance cover
76.21
33.02
24.77
30.51
18.29
56.29
15.24
5.44
SOLT/TMA/EQUITY FIGHT DIRECTORS
(from December 1, 2006)
Fees for a 3½ hour session
£
West EndRNT/RSC/Major Opera & Dance
Provincial Commercial/Sub-Rep Grade 1
Sub-Rep Grade 2
Sub-Rep Grade 3/Minor Opera & Dance
99.00
88.00
78.50
67.00
152.45
114.00
21.73
21.73
21.73
108.64
325.98
1,524.49
2,286.74
2,286.74
533.58
2,286.74
1,143.37
2,286.74
571.69
495.47
533.58
495.47
27,385.00
195,612.00
26,081.00
© SOLT October 2007
u
TMA - CURRENT UNION RATES
TMA/Equity/BECTU/Theatre Designers
TMA/Equity Theatre Choreographers
Resident Designers
Minimum Salaries (from April 2, 2007)
Head of Design
MRSL 1
MRSL 2
MRSL 3
£
427.67
415.62
377.50
Resident Designer
MRSL 1
MRSL 2
MRSL 3
396.79
383.75
347.88
Assistant Designer
324.97
Freelance Designers
Minimum Fees (from April 2, 2007)
Theatre/RSC/RNT
Full
Small
Set and Costume
£
5,638.00
3,383.00
Subsidised Theatre
MRSL 1
Tour
Studio/Workshop
MRSL 2 & 3
Major
Studio/Workshop
3,238.00
1,377.00
1,209.00
1,685.00
579.00
2,372.00
1,143.00
660.00
527.00
Commercial Theatre
Normal Minimum Tour/Season
Musical
2,814.00
Straight Play
2,263.00
Exceptional Minimum Tour/Season
Tour/Season/Rep/Sessional
1,217.00
Opera & Ballet
Opera A (ROH/ENO)
Full
1 Act & small-scale tours
Lighting
£
2,584.00
1,292.00
1,778.00
992.00
475.00
TMA/Musicians’ Union (Interim Rates)
Once nightly
Twice nightly
Twice daily
Overtime – per ¼ hour
Additional/Sunday Performances
Sunday rehearsals: -1st 3hrs
then per 15 mins
Subsistence
Touring allowance
Performances out of the playing area:
Once-Nightly
Twice-Daily or Nightly
Porterage (A,B,C) – 1 instrument
- 2 or more instruments
Mileage allowance
(From April 15, 2006)
£
355.55
371.71
365.25
5.56/4.97/4.89
44.44/30.98/30.44
88.89
9.25/8.29/8.16
114.00
177.50
3.31 (max 26.48)
2.96 (max 35.52)
10.34
20.68
0.21
TMA/BECTU
6,198.00
2,882.00
Opera B (SO/WNO/Opera North/Glyndebourne)
Full
4,509.00
1 Act
1,919.00
Small-scale tour
2,112.00
3,015.00
1,381.00
1,722.00
783.00
858.00
Opera C
Full
1 Act
2,121.00
964.00
862.00
475.00
Ballet A (Royal Ballet/BRB/ENB)
Full
1 Act
Small-scale tour
5,638.00
1,803.00
2,112.00
1,722.00
783.00
858.00
Ballet B (Rambert/Northern/Scottish)
Full
2,894.00
1 Act
1,056.00
Small-scale tour
2,112.00
1,506.00
588.00
795.00
Ballet C (all others)
Full
1 Act
(From October 1, 2006)
Minimum fees - Commercial Theatre
£
Tours and Seasons
1,032.00
Lower Minimum/Commercial Repertory
554.00
Minimum fees - Subsidised Repertory
MRSL 1
1,005.00
MRSL 2
898.00
MRSL 3
843.00
Additional weeks - Commercial Theatre
Tours and Seasons
353.00
Lower Minimum Productions/Commercial Rep
232.00
Additional weeks - Subsidised Repertory
MRSL 1
402.00
MRSL 2
359.00
MRSL 3
337.00
Additional Days
Tours & Seasons/MRSL 1 & 2
105.00
MRSL 3
95.00
Exceptional Minimum/Commercial Repertory
67.50
Daily Engagements
Tours and Seasons / MRSL 1 and 2
157.00
MRSL 3
121.00
Exceptional Minimum/Commercial Repertory
91.00
2,121.00
423.00
756.00
475.00
Minimum weekly rates
Grade 1 per hour
Grade 2 per hour
Grade 3 per hour
Grade 4 per hour
Performance Staff (Once nightly)
Stage per performance
Front-of-house per performance
Performance Fireman
Clause 2.3.3 – Meal expenses
Subsistence (per week)
Subsistence – over 4 hours
over 8 hours
over 12 hours
Clause 2.18.4 – Overnight allowance
Long stay/tour- per week
Travel mileage (per mile)
first 30 miles
subsequent miles
Get out – First 2 hours
Each subsequent hour
Get out (Exceptions) – First 4 hours
Each subsequent hour
Ancillary payments
Pick-ups
Call outs
(From April 3, 2006)
£
6.70
6.12
5.68
5.35
18.73
18.73
26.75
4.29
70.64
5.90
11.78
17.65
27.38
163.33
0.42
0.28
74.69
37.32
132.83
41.51
7.02
1.29
16.99
TMA – CURRENT UNION RATES
TMA/Equity Commercial Theatre
TMA/Equity Theatre Directors
(From April 2, 2007)
(Minimum fees and salaries from April 3, 2006
Normal Minimum
Rehearsal Performer / ASM
Rehearsal DSM
Rehearsal SM
Rehearsal C&SM
£
314.00
392.50
439.50
471.00
Performer / ASM once nightly / twice nightly
DSM once nightly / twice nightly
SM once nightly / twice nightly
C&SM once nightly / twice nightly
330.00
413.00
462.00
495.00
/
/
/
/
355.00
444.00
497.00
533.00
Exceptional Minimum
Performer / ASM once nightly / twice nightly
DSM once nightly / twice nightly
SM once nightly / twice nightly
C&SM once nightly / twice nightly
281.50
352.00
394.00
422.50
/
/
/
/
303.50
379.50
425.00
455.50
Subsistence
Weekly Touring Allowance
94.50
177.50
Daily Touring Allowance
Understudy obligation (per role per week)
Understudy performance (per performance)
Understudy performance payment (ceiling)
Swing Dancer (per week)
Dance Captain (per week)
Flying (per week)
Ceiling Salary (per week)
38.33
13.63
20.43
61.31
1705
30.66
38.15
540.86
TMA/Equity Subsidised Repertory Performers
and Stage Management
CREATIVE
FEE
Subsidised Repertory
Freelance
MRSL 1
2
3
Artistic Dir
MRSL 1
2/3
Resident Dir MRSL 1
2
3
Assistant Directors all
ESP p.w.
877.34
795.08
740.28
402.00
359.00
337.00
per week:
“
“
“
“
“
515.79
476.75
428.10
404.14
379.47
326.85
Commercial Tours/
Seasons
Exceptnl Min - short run
long run
Normal Min - short run
long run
TOTAL
FEE + 4ESP
2,485.34
2,231.08
2,088.28
1,386.34
2,079.50
1,848.45
3,080.74
Min. weekly fees - EM
NM
per week:
“
101.40
145.59
Commercial Repertory
Freelance
Resident Director - LM
HM
658.03
per week:
“
277.22
325.37
390.44
TMA/Writers’ Guild
1,766.91
(From June 19, 2006)
(From April 2, 2007)
MRSL 1
Performers - Minimum salary
MRSL Grade 1
MRSL Grade 2
MRSL Grade 3
£
338.00
414.00
370.00
347.00
Stage Management
ASM - MRSL Grade 1,2 and 3
DSM - MRSL Grade 1
DSM - MRSL Grade 2
DSM - MRSL Grade 3
SM – MRSL Grade 1
SM – MRSL Grade 2
SM – MRSL Grade 3
CSM - MRSL Grade 1
CSM - MRSL Grade 2
CSM - MRSL Grade 3
310.00
370.00
337.00
325.00
414.00
370.00
347.00
448.00
400.00
378.00
Subsistence – Relocation Allowance
Subsistence – Commuting Allowance
119.00
105.00
Weekly Touring Allowance
170.00
Daily Touring Allowance
Out of Pocket Expenses
Understudy obligation (per week)
Additional roles
Performance payment - leading
Performance payment – other
Mileage allowance
Flying
Stage Management in costume
Stage Management extra services
Head Boy/Girl
© TMA October 2007
29.64
9.55
16.18
5.55
19.72
11.96
0.43
32.89
4.96
83.25
24.49
Commissioned Play
2(a)(i)
2(a)(ii)
2(a)(iii)
Non-Commissioned Play
2(b)(i)
2(b)(ii)
Rehearsal attendance
Options (all grades)
1
2/3
4
Management Participation
Threshold
(all grades)
MRSL 2
MRSL 3
3,917.00
1,781.00
1,781.00
3,203.00
1,424.00
1,424.00
2,493.00
1,424.00
1,424.00
5,698.00
1,781.00
4,628.00
1,424.00
3,916.00
1,424.00
52.55
46.09
42.39
2,221.00
3,704.00
2,962.00
42,323.00
SOLT/TMA/Equity Fight Directors
(From December 1, 2006)
Fees for a 3½ hour session
West End/NT/RSC/Major Opera & Dance
Commercial/MRSL Grade 1
MRSL Grade 2
MRSL Grade 3/Minor Opera & Dance
£
99.00
88.00
78.50
67.00
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)
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)
staff - how many
are they available to producer full time (e.g. box office)
levels of pay
NI
pensions
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
negotiable
fair.
“So, you wanna’ be a Producer?!”
Section 3.1 (Page 2
of 3)
KEY POINTS TO CONSIDER WHEN
CONTRACTING A WEST END THEATRE
1.3 Notice Clauses
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)
How many
Who benefits
Are there any allocated for Stage One Voluntary Levy.
1.5 Box Office
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.
Credit card commission at cost or marked up by theatre
– rate must be specified
Phone room and telephone booking charges (if any) –
rates must be specified
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)
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
Is contract dependent on named stars
Arrangements if named star does not appear (e.g. illness)
Arrangements for re-casting
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.
“So, you wanna’ be a Producer?!”
Section 3.1 (Page 3
of 3)
KEY POINTS TO CONSIDER WHEN
CONTRACTING A WEST END THEATRE
1.7 Deposits
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
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
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.
“So, you wanna’ be a Producer?!”
Section 3.2 (Page 1 of 1)
LONDON WEST END THEATRES CONTACTS FOR BOOKING THEATRES
Contact: Michael Lynas
The Ambassador Theatre Group
Duke of York’s Theatre
104 St Martin’s Lane
London WC2N 4BG
Tel: 020 7854 7000
Contact: Michael Codron CBE
Michael Codron Plays Ltd
Aldwych Theatre Offices
Aldwych
London WC2B 4DF
Tel: 020 7240 8291
COMEDY, DUKE OF YORK’S, FORTUNE, NEW AMBASSADORS,
PHOENIX, PICCADILLY, PLAYHOUSE, SAVOY, TRAFALGAR
STUDIOS
ALDWYCH
Contact: Fiona Callaghan
Criterion Theatre
Piccadilly Circus
London SW1Y 4XA
Tel: 020 7839 8811
Contact: Nica Burns
NIMAX Theatres Ltd
1 Lumley Court, Off 402 The Strand
London WC2R 0NB
Te: 020 7395 0783
0845 434 9290
APOLLO, DUCHESS, GARRICK, LYRIC, VAUDEVILLE
CRITERION
Contact: Dagma Waltz
The Old Vic
The Cut
London SE1 8NB
Tel: 020 7928 2651
Contact: Richard Johnston
Delfont Mackintosh Theatres Ltd
The Novello Theatre
Aldwych
London WC2B 4LD
Tel: 020 7379 4431
THE OLD VIC
ALBERY, GIELGUD, PRINCE EDWARD, PRINCE OF WALES,
QUEEN’S, NOVELLO, WYNDHAMS
Contact: Nigel Everett
Haymarket Theatre Royal
Haymarket
London SW1Y 4HT
Tel: 020 7930 8890
ADELPHI,
CAMBRIDGE,
HER
MAJESTY’S,
LONDON
PALLADIUM, NEW LONDON, PALACE, THEATRE ROYAL
DRURY LANE
Contact:
Sir Stephen Waley-Cohen, Bt
Victoria Palace Theatre
Victoria Street
London SW1E 5EA
Tel: 020 7828 0600
THEATRE ROYAL HAYMARKET
Contact: Live Nation
35-36 Grosvenor Street
London
W1K 4QX
Tel: 020 7529 4300
APOLLO VICTORIA,
DOMINION, LYCEUM
Co nt act: Re all y U s eful T he atre s
Manor House, 21 Soho Square
London W1V 5FD
Tel: 020 7494 5200
ST. MARTIN’S, VICTORIA PALACE
CARLING
APOLLO
HAMMERSMITH,
Contact: James Williams
Theatre of Comedy Company Ltd
Shaftesbury Theatre
210 Shaftesbury Avenue
London WC2H 8DP
Tel: 020 7379 3345
SHAFTESBURY
“So, you wanna’ be a Producer?!”
Section 3.3 (Page 1 of 2)
KEY POINTS TO CONSIDER WHEN CONTRACTING WITH
A NO.1 TOURING THEATRE
General Comments
Touring venues are usually booked up a long way in advance. Most
operate on a system whereby they will make a "pencil booking" first
and then confirm or otherwise nearer the time. No contract exists
until the booking is confirmed and the terms and conditions agreed.
2.1 The Terms
Guarantee to producer:
• Are royalties included or off the top before guarantee paid - how
much is the guarantee
• Second call to venue - how much
• How are the remaining receipts shared
• Guarantees on account of percentage of box office receipts.
First Call to producer:
• How much is first call
• Royalties off the top or included
• Second call to venue
• How are the remaining receipts shared.
Sharing deal:
• How are receipts shared
• Royalties off the top before receipts shared or does the producer
pay royalties from his/her share
• Does producer's share of receipts increase over an agreed box
office figure.
2.2 Box Office Ticket Prices
•
•
•
•
2.3 Advertising, Print and
Publicity
•
•
•
•
•
•
•
© Theatre Investment Fund
Full prices - total seat value per performance and per week
Concessions and discounts
Complimentary tickets (NB local clubs, schemes, sponsors, etc.)
Any deductions (other than VAT) from weekly receipts - e.g. credit
card commissions at cost or marked up?
• agents commissions
• ticketing charge (e.g. for computer use).
Check when pencilling dates:
• Current business levels
• Level of business for same week(s) last year and details of show.
Total weekly spend by venue
How much is charged to producer each week (may be negotiable)
Will any additional promotion be needed, if so who pays
Mailing list details - numbers mailed and with what
Position of production in venue's brochure(s)
Advertising schedule
Quantities of print required to be supplied by producer and sizes
thereof
• What information does the venue require to be included on print
• Number of photos, synopses, cast lists and press releases required
by venue.
“So, you wanna’ be a Producer?!”
Section 3.3 (Page 2 of 2)
KEY POINTS TO CONSIDER WHEN CONTRACTING WITH
A NO.1 TOURING THEATRE
2.4 Staff
• How many does venue supply free of charge for get in, fit up and
running
• Charges for any extra staff - what rates - who pays
• Sunday get in - who pays, how shared
• Get out - at what rates.
2.5 Miscellaneous
• Is contract dependent on star name(s) - if star does not appear do
terms still apply?
• Is there a penalty for no interval?
• Is there a penalty for less than 8 performances per week?
• Merchandise arrangements
• PRS charges/payment
• Foreign artists - the law requires the theatre to withhold tax at the
standard rate from monies due to producer until Inland Revenue
give clearance on foreign artists
• Arrangements for payment on account during playing weeks
including any cash drawing requirements
• Final accounting date by venue to producer
• Insurance, licensing, health and safety requirements, regulations
and legislation.
© Jan 2000 Theatre Investment Fund
“So, you wanna’ be a Producer?!”
Section 3.4 (Page 1 of 1)
KEY POINTS TO CONSIDER WHEN CONTRACTING A
CO-PRODUCTION WITH A PRODUCING THEATRE
3.1 Artistic
• Who chooses cast, creative team, etc.
• Who approves designs etc. - to what standard is the physical
production to be built (e.g. class 1 timber)
• Who has overall artistic control.
3.2 At Producing Theatre
What is budget, who pays costs
• Does producer make "top up" payment to producing theatre,
if so how much
• Who owns rights to play, who pays royalties to author
• Who retains box office receipts
• Does producing theatre pay any part of box office receipts to
producer
• Are all cast and creative team paid by producing theatre any top up from producer to cast or creative team
• Who authorises/pays any over budget costs
• Billing and programme credits/biography for producer.
3.3 During Commercial
Exploitation of
Production
• What will producing theatre receive: - weekly royalty on box
office receipts or is it fixed - rising on recoupment - built in
royalty waivers
• Any profit share (if any)
• Are rights assigned to or already owned by commercial
producer
• Lump sum payment (if any) for physical production to
producing theatre
• Hire charges (if any) for physical production to producing
theatre
• Who owns physical production and who maintains, stores and
insures it
• Right to use graphic design(s) and production photos from
producing theatre
• Arrangements for commercial producer to take over hired (or
borrowed goods) from producing theatre
• Billing and programme credits/biographies for producing
theatre.
© Feb 2001 Theatre Investment Fund
KEY POINTS TO CONSIDER WHEN CONTRACTING A
CO-PRODUCTION WITH A PRODUCING THEATRE
3.1 Artistic
3.2 At Producing Theatre
3.3 During Commercial
Exploitation of
Production
© Stage One
Who chooses cast, creative team, etc.
Who approves designs etc. - to what standard is the physical
production to be built (e.g. class 1 timber)
Who has overall artistic control.
What is budget, who pays costs
Does producer make "top up" payment to producing theatre,
if so how much
Who owns rights to play, who pays royalties to author
Who retains box office receipts
Does producing theatre pay any part of box office receipts to
producer
Are all cast and creative team paid by producing theatre any top up from producer to cast or creative team
Who authorises/pays any over budget costs
Billing and programme credits/biography for producer.
What will producing theatre receive: - weekly royalty on box
office receipts or is it fixed - rising on recoupment - built in
royalty waivers
Any profit share (if any)
Are rights assigned to or already owned by commercial
producer
Lump sum payment (if any) for physical production to
producing theatre
Hire charges (if any) for physical production to producing
theatre
Who owns physical production and who maintains, stores and
insures it
Right to use graphic design(s) and production photos from
producing theatre
Arrangements for commercial producer to take over hired (or
borrowed goods) from producing theatre
Billing and programme credits/biographies for producing
theatre.
“So, you wanna’ be a Producer?!”
Section 3.5 (Page 1
of 4)
CO-PRODUCTION AND JOINT VENTURE DEALS
1. Different Types
General non-specific
Limited partnership
Big Investor as “Associate Producer”
Specific for particular production
Dominant or managing partner
Equal Strength
Co-Production Agreement between “partners” or joint
company with defined corporate structure and shareholder’s
agreement (tax considerations)
2. Co-Production Agreements (Points to Address)
(1) Statement of Objectives
generally
specific production
new material
development expenditure
(2) Name of Joint Venture
query whether separate joint venture company
(3) Division of Responsibility
finance
budget
generally (non production)
raising outside investment
loans by co-producers
production
management
dates and services
administration and accounts
local licences, work permits, banking, VAT etc.
(4) Bank Accounts Mandate
(5) Billing credits
general accounts
production
accounts
(6) Consultation and
Approval Rights
© D Michael Rose
good faith
written or oral
assumptions
“major” & “minor” decisions
artistic decisions
Section 3.5 (Page 2 of
“So, you wanna’ be a Producer?!”
4)
CO-PRODUCTION AND JOINT VENTURE DEALS
(7) Contract with third
parties
names
signatures
(8) Access to accounts,
contracts and other
records
(9) Reports
(10) Individual personal
services
separate agreement
nominated representatives
effect of disabling event
producer’s royalty & management fees
travelling subsistence and other non-overhead expenses
(11) Specific Production
Parameters
capitalisation
maximum royalties
caps, pools and deferrals
theatre
budget
(12) Profit & Loss Shares
with investors
between co-producers
indemnity and contributions
(13) Professional
appointments
solicitors
accountants
graphic designers
(14) House seat sharing
(15) Termination
© D Michael Rose
of production
of joint venture
closure decisions (see below)
Section 3.5 (Page 3 of
“So, you wanna’ be a Producer?!”
4)
CO-PRODUCTION AND JOINT VENTURE DEALS
(16) Order of application of
production revenue
running exes (inc. royalties and fees)
reserves
production costs overage
internal loans
investors’ subscription
profits distribution
(17) Attention to business
(18) Conflicts
competing
productions
(19) Arbitration
(20) Usual “Boilerplate”
clauses
3. Closure Decisions in Joint Venture Co-Productions
A. Theatre may take
decision out of coproducers’ hands e.g.
where fixed season or term
where contractual right of theatre to require closure in
specified circumstances
B. Where one co-producer
wishes to close and other
does not
open-ended run
penalties for early closure
need of co-producers to legislate in advance
possible requirements of a “dominant” or “managing” coproducer
points to address:
circumstances in which one co-producer entitled to
insist on closure or withdrawal e.g. 4 weeks’
continuous running loss. Should be required to
make up his/her mind within specified time window
alternatives
© D Michael Rose
either can insist on closure
either can continue if other wishes
out
only one (i.e. managing or
dominant partner) able to continue
(time-window for election)
“So, you wanna’ be a Producer?!”
4)
Section 3.5 (Page 4 of
CO-PRODUCTION AND JOINT VENTURE DEALS
conditions for “take over” by one co-producer to
exclusion of the other:
future financial and artistic control
and responsibility
indemnity (but query financial
status of continuer)
co-production accounts
treatment of closure and get-out
costs
eventual disposal of physical
assets
reserves
possible penalties under theatre
contract
effect on co-producers’ profit
share and royalties.
query development royalty
impact on investors
transfer rights
any other contractual adjustments
“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
“So, you wanna’ be a Producer?!”
Section 4.2 (Page 1 of 3)
OUTLINE BUDGET
PRODUCTION TITLE:
Date
PRODUCTION
FEES
Authors
Director
Choreographer
Set Designer
Costume Designer
Lighting Designer
Sound Designer
Orchestrator/Arranger
Production Musical Director
Orchestral Manager
Casting Director
Creative team assistants
General Manager/Producer
Production Manager
Costume Supervisor
Props Supervisor
Production Carpenter
Production Electrician
Production Sound
Total Fees
PHYSICAL PRODUCTION
Set
Props
Costumes/Wigs
Electrics
Sound
Transport
Musical Instruments
Misc.
Fit up (Contractors labour)
L.X. Hires
Sound Hires
Other Hires
Total Physical Production
© Andrew Treagus
RUNNING
ROYALTY
NOTES
1
2
2
2
2
2
2
2
3
4
5
6
7
8
9
9
9
9
9
£0.00
£0.00
0.00%
10
10
10
11
11
12
13
14
15
15
15
£0.00
£0.00
“So, you wanna’ be a Producer?!”
Section 4.2 (Page 2 of 3)
OUTLINE BUDGET
PRODUCTION RUNNING
SALARIES
Lead Artists
Principles
Ensemble & Swings
Understudies
Overtime
Musical Director
Assistant MD
Rehearsal Musician
Orchestral Salaries
Company Manager
Stage Manager
DSM
ASMs
Engineer & Prod L.X.
Sound
Wardrobe
Wigs
Overtime
Staff Director
Dance Captain
NI/Pensions/Hol Reserve
Total Salaries
THEATRE COSTS
Theatre Rent
Theatre Contra
Running Staff - Stage & Flys
Running Staff – LX & Follow
spots
Running Staff - Dressers
Fit up
Misc.
Total Theatre Costs
REHEARSAL COSTS
Audition costs
Scripts/Scores/Copying
Rehearsal Rooms
Rehearsal Hires
S.M. Petty Cash
Travel and subsistence
Misc.
Total Rehearsal Costs
© Andrew Treagus
people
ROYALTY
NOTES
weeks
£0.00
£0.00
£0.00
£0.00
16
16
16
16
17
18
19
20
21
22
22
22
22
23
24
25
25
17
26
27
28
29
30
31
31
31
32
£0.00
£0.00
33
36
34
35
37
38
£0.00
£0.00
“So, you wanna’ be a Producer?!”
Section 4.2 (Page 3 of 3)
OUTLINE BUDGET
PRODUCTION
ADVERTISING & PR.
Advertising
FOH Display
Print
Marketing
PR Fee and expenses
Photographer and prints
Press Prints
Total Advertising and PR
GENERAL ADMINISTRATION
Legal Fees
Accountancy
Insurance
Travelling Expenses
Per diems/Hotels
Opening Night and Entertaining
Administration/office costs
Total General Administration
MISC COSTS
Replacement Reserve
Preproduction costs
Total Misc. Running Costs
RUNNING
NOTES
39
39
39
39
39
39
39
£0.00
£0.00
40
40
41
42
42
43
44
£0.00
£0.00
45
46
£0.00
£0.00
TOURING COSTS
Touring allowance
Company travel
Cartage
Get in/out
Production crew hotels &
expenses
Total Touring Costs
£0.00
£0.00
TOTALS
Fees
Physical Production
Salaries
Theatre Costs
Rehearsal Costs
Advertising & PR
General Administration
Misc. Costs
Touring costs
TOTAL COSTS
£0.00
£0.00
£0.00
£0.00
£0.00
£0.00
£0.00
£0.00
£0.00
£0.00
£0.00
£0.00
£0.00
£0.00
£0.00
£0.00
£0.00
£0.00
£0.00
£0.00
© Andrew Treagus
ROYALTY
47
48
49
50
51
52
53
54
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Section 4.3 (Page 1 of 4)
NOTES TO THE OUTLINE BUDGET
1.
The Author’s royalty. Any advance payment/s not recoupable against the royalty should
be included under Production.
2.
The main Creative Team, usually paid fees for the production period and royalties
(fixed or percentage) during the run. Any additional advance payment/s not recoupable
against the royalties should be included under Production.
3.
The Production Musical Director is part of the Creative Team and will receive a
production fee, but is unlikely to receive a royalty. The PMD may receive a weekly fee
during the run for supervision and may, additionally, take the role of Musical Director,
in which case he or she will continue to be paid weekly under ‘salaries’.
4.
The Orchestral Manager or Fixer is paid on a weekly basis throughout the run. Some
fixers work on a fixed fee, others on a percentage of the Orchestra’s total weekly
salary.
5.
A production fee to organize the initial casting and sometimes a weekly fee on
musicals.
6.
A production figure to cover fees for all Creative Team assistants.
7.
A weekly fee normally paid 2 weeks prior to rehearsal, throughout the rehearsal period,
the run of the production and for 2 weeks following the closure. Fees vary according to
the size of the production. Some Producers in addition pay themselves a royalty in the
same manner as the Creative Team. If an independent General Manager is employed,
the fee element will be shared by the Producer and General Manager.
8.
A fee for the production period and, if it is a complicated technical production, a weekly
retainer for ongoing technical consultancy.
9.
Production personnel, usually paid fees or may be paid on daily rates. Occasionally the
Costume Supervisor may be retained on a weekly retainer to deal with cast
replacement costumes and remakes.
10.
The actual costs of manufacture and purchase of all the physical requirements of the
production.
11.
Items of electrics and sound equipment purchased during the production period and
also during the run which are not covered in the hire agreements e.g. colour for
lanterns and batteries for radio mics.
12.
The cost of all transportation during the production period of all the physical effects
including the cost of transport between workshops, rehearsal rooms and theatre.
13.
The purchase or hire of those instruments (e.g. keyboards) not supplied by members of
the Orchestra.
14.
Contractors labour charges for the installation of the set, lighting and sound during the
fit up.
© Andrew Treagus
“So, you wanna’ be a Producer?!”
Section 4.3 (Page 2 of 4)
NOTES TO THE OUTLINE BUDGET
15.
Weekly running hire for all equipment not purchased.
16.
Performers salaries: rehearsal salaries are subject to the SOLT/Equity agreement;
weekly performing salaries are negotiated with individual Artists or their Agents
subject to SOLT/Equity minima.
17.
Overtime should be expected and added; it nearly always applies during the technical
and dress rehearsal period.
18.
Paid on a weekly basis. On smaller musicals the MD may well play an instrument
within the Orchestra.
19.
Usually a member of the Orchestra paid an additional weekly sum to undertake this
additional responsibility.
20.
Most commonly, keyboard players specifically used during the rehearsal period, paid
on a session, daily or weekly basis.
21.
The weekly salaries of the Orchestra covers 8 performances per week. In the
production period the figure is calculated on the number of 3 hour calls required, 8
calls equal 1 weeks salary. Consult an experienced Fixer who will give clear guidelines
as to the expected costs. (subject to SOLT/MU minimums)
22.
There are minimum SOLT/Equity agreed weekly salaries for Stage Management which
remain the same during rehearsal and the run. Many Producers offer a little above
the minimum for each grade.
23.
Applicable only to large scale musicals and very technical straight plays when
specialist skills are required throughout the run.
24.
Sound operators are not covered by any union agreement; their salaries are by
negotiation.
25.
Covered by SOLT/BECTU agreed minimum rates.
26.
Probably the Assistant Director, retained throughout the run to check quality control,
give notes, rehearse understudies and assist or rehearse cast replacements.
27.
A member of the chorus/ensemble with the additional duty to maintain the standard
of choreography.
28.
Add an additional percentage on all salaries to cover the employer’s share of N.I., the
employees’ holiday entitlements and employer’s contribution to pension fund.
29.
Agreed by negotiation. Can be a fixed weekly sum, a percentage of the weekly net
box office receipts, a percentage of profits or any combination. Commonly, during the
get in, technical & dress rehearsals a reduced fixed fee, then until the recoupment of
the production costs a fixed weekly sum, after recoupment a percentage.
© Andrew Treagus
“So, you wanna’ be a Producer?!”
Section 4.3 (Page 3 of 4)
NOTES TO THE OUTLINE BUDGET
30.
An estimate of the Contra charges can be obtained from the Theatre. The contra
includes all staff costs (backstage and front of house), electricity and heating,
cleaning, rates, water rates, telephone charges, box office computer charges and
many miscellaneous charges, even toilet rolls.
31.
The cost of any additional staff taken on by the Theatre at the Producer’s request and
recharged to the Producer.
32.
The cost of the permanent staff overtime and any extra staff required by the Producer
for the get in and fit up.
33.
Include all costs related to casting, e.g. rooms/theatre hire, pianist, piano hire, travel
and Stage Management staff.
34.
Hire of rooms for the rehearsal period.
35.
Hire of equipment for rehearsals, e.g., piano, mirrors, rehearsal furniture, sound
equipment etc.
36.
Typing and duplication of the script and copying and duplication of the musical score.
37.
Teas/coffees, stationery, telephone, parking, etc.
38.
Fares and/or subsistence for those members of the company who live outside London.
(SOLT/Equity agreement)
39.
Take advice on all these areas from a reputable advertising and marketing company.
40.
Take advice on the levels of these fees from your professional advisors.
41.
Take advice from an insurance broker who specializes in theatrical insurance.
42.
To cover all fares, per diems and hotels for the management and creative team.
43.
The opening night party and any other entertaining and first night gifts.
44.
Any costs of the Producers or Managers office which are over and above the normal
costs of running the office, which directly relate to the production and can therefore
legitimately be recharged to the production.
45.
A weekly sum of money reserved within the accounts to pay for the repair and
replacement of any of the physical properties. A reserved sum can also be used to
help pay for the cost of cast replacements.
46.
Costs incurred by the Producer in the initial setting up the production and legitimately
rechargeable to the production.
47.
Items under this sub heading are only applicable to touring.
© Andrew Treagus
“So, you wanna’ be a Producer?!”
Section 4.3 (Page 4 of 4)
NOTES TO THE OUTLINE BUDGET
48.
The touring allowance.( SOLT/Equity and SOLT/ MU).
49.
Fares for Company and Staff between dates.
50.
Transport of the physical production between dates.
51.
Labour costs of getting in and out of each date.
52.
Hotel rooms for the non-permanent fit up crew and artistic staff at each venue.
53.
Under this sub heading are the sub totals for each sub heading.
54.
The totals for each column.
© Andrew Treagus
“So, you wanna’ be a Producer?!”
Section 4.4 (Page 1 of 3)
CAPITALISATION, PROFIT & LOSS AND
RECOUPMENT
Having estimated the costs
of mounting and running
the production,
consideration must be
given to the capital sum
that will be required, taking
into account the following:-
a) The estimated production costs.
b) A contingency of say 10% of the production costs to allow
for any overspends.
c) A reserve of funds to cover any running losses that may
occur at any time during the run. Lack of such a reserve has
caused many producers to run into financial difficulties.
d) Sufficient funds to cover any deposits that the Theatre,
Equity and/or the MU may require.
e) Sufficient funds to meet the VAT elements on invoices
relating to the production for supplies or services and which
cannot be reclaimed timely from Customs & Excise (consult
your accountant).
f) Sufficient funds to cover any running invoices that may need
to be paid during the production period. Hire companies, for
example, give worthwhile reductions on their hire charges if
6 or more running weeks are paid in advance.
g) Sufficient funds to cover closure costs, if the production fails.
Most of the foregoing items, in particular d,e,f & g are a matter
of funding cash flow. Items a & b, together with item c, is the
total expenditure that has to be set against any Weekly Running
Profits in order to achieve Recoupment. Recoupment is normally
defined as ‘The point in time when the Producers share of the
Net Box Office Income first equals the aggregate of the
Productions Costs plus the Weekly Running Costs to that date
less any weekly running losses to that date’. Net Weekly
Running Profit is usually defined as ‘The Producers share of the
Net Box Office Receipts less all Weekly Running Costs including
Royalties’.
Up until the week in which recoupment takes place, all weekly
running profits that go towards recoupment are held in the
Producers bank account for the benefit of the Investors and are
then paid over to the Investors. Once recoupment has been
reached, investors are entitled to receive back the same sum of
money that each individually invested. Normally, repayment of
the whole investment would not be made until post recoupment
profits had built up a reserve to meet possible running losses or
cash flow needs.
In the event of a show having to close before recoupment takes
place, but when partial recoupment has taken place, each
Investor would receive only that percentage portion of the partial
recoupment money as that Investor’s percentage investment
bore to the total Capital.
© Andrew Treagus
“So, you wanna’ be a Producer?!”
Section 4.4 (Page 2 of 3)
CAPITALISATION, PROFIT & LOSS AND
RECOUPMENT
Following Recoupment any aggregate of Weekly Running Profits
against any Weekly Running Losses is divided between the
Producer and the Investors, the usual ratio being 40% to the
Producer and 60% to the Investors. The 60% to the Investors
would be divided, each Investor receiving that percentage
portion of profit as that Investor’s percentage investment bore to
the total Capital.
Profit and Loss
© Andrew Treagus
An estimated profit/loss illustration can now be assembled. An
example is given overleaf with figures inserted as a guide to how
it works. The illustration is based on the following:• A net box office potential of £120,000.00
• Fixed Weekly Running costs of £55,000.00
• Royalties of 15%
• Showing a Weekly Running Profit
• Assuming a Total Production Cost of £250,000.00
• Showing the estimated number of weeks to Recoupment
(derived by dividing the Total Production Cost figure by the
Weekly Running Profit figure).
“So, you wanna’ be a Producer?!”
Section 4.5 (Page 1 of 2)
ROYALTY POOLS
Royalty pools are now more commonly being negotiated and in particular on musicals and
larger budget straight plays.
A common example of a royalty pool can be described as follows: instead of the Royalty being
calculated as a percentage of the net Box Office receipts, it is calculated as a proportion of the
Gross Weekly Running Profits, using the following guidelines:
a) The Gross Weekly Running Profit (Calculated by deducting from the weeks net box office
receipts all weekly running costs excluding royalties) is divided between the Royalty Pool
participants and the Producer/Investors in an agreed ratio. For example, 65% to the
Producer/Investors and 35% to the Royalty Pool. This split (65%/35%) would be part of
the negotiated agreement.
b) The Producer/Investors’ share (e.g. the 65% as above) becomes the Net Weekly Running
Profit and, prior to Recoupment, on a weekly basis, aggregates towards achieving
Recoupment. Following Recoupment the percentage division is normally adjusted (again by
negotiated agreement); for example the Producer/Investor’s share may reduce to 60% and
the Royalty Pool increase to 40%.
c) The Royalty Pool share (e.g. the 35% as above, or 40% following Recoupment) is divided
between all the Royalty Participants in the ratio of their individual Royalty to the total of the
Royalties to be paid. For example, if the total Royalties in a pool amounted to 15%, each
1% Royalty holder would receive 1 point within a total of 15 or 1/15th of the total Pool.
d) It is clear from a), b) and c) that in a week where there is little or no Gross Weekly Running
Profit, Royalty participants could share in a small or even non existent Pool. In order to
deal with this eventuality and to ensure some payment is made to royalty holders in poor
weeks, a minimum payment per point is normally negotiated, for example £200 per point or
a total of £3,000 for the 15 points illustrated.
The use of a Royalty Pool helps to protect the Producer if a show is playing to poor business
and effectively reduces the figure at which the show will start to show a loss on a weekly basis.
A profit/loss illustration based on a 65%/35% Pool arrangement is shown overleaf. The same
Box Office Figures and Fixed Weekly Operating Costs are used as for the previous profit /loss
illustration, but it will be clear that on the Pool arrangement the Producer is at less financial
risk of loss at the lower Box Office levels.
© Andrew Treagus
“So, you wanna’ be a Producer?!”
Section 4.6 (Page 1 of 2)
ROYALTY REDUCTIONS, DEFERMENTS AND CAPS
A Producer may not be able to persuade an Author (or their agent) to work within a Royalty
Pool formula and almost certainly this will be the case with a small straight play. There are,
however, other methods, frequently used to help the Producer either to reach Recoupment
within a reasonable period of time or to assist the Producer to keep a show afloat during
periods of low Box Office income. These include:-
Caps
A royalty cap can be pre-negotiated (requiring the agreement of all
Royalty Participants) to allow the Producer only to pay Royalties up
to a specific level of Box Office income. For example, the theatre at
which the play is going to open may have a Net Box Office Potential
of £100,000 at capacity, but an agreement could be reached so that
the Royalty Participants will only be paid their royalties up to 70% of
that figure, so that if the Producer really got lucky and played in
excess of 70%, any box office income in excess of £70,000 would be
Royalty free thus hastening the point of Recoupment. Such an
agreement would only be until Recoupment is reached, at which
point the Cap would be removed and Royalties paid on the actual
Box Office figures.
Reductions and
Waivers
When shows run into trouble at the Box Office and fail to meet the
weekly running costs, the producer has three options:
1) Close the production.
2) Keep the show running and suffer the losses.
3) Reduce the costs and try to keep the show alive.
Option 3 is normally the first to be tried. So what reductions are
possible? Almost certainly the Producer will approach the theatre
and seek a reduction on the rent, and unless the theatre has another
show lined up to take over immediately, the owner will usually be
helpful. The other main area of possible saving is of course the
Royalties, and an approach at this stage to the Author’s Agent will
generally elicit at least a temporary reduction. It is, after all, hardly
ever in the Author’s best interest for the Producer to have to close
the production. The Author will expect that all Royalty Participants
accept the same formula for cuts and will always be more willing to
help if the theatre has been accommodating.
A waiver is the best kind of Royalty reduction and simply allows the
Producer to continue to run the play for a period paying little or no
Royalties at all. It would only be in extreme circumstances and with
a very understanding Author that such a waiver would last for long.
© Andrew Treagus
“So, you wanna’ be a Producer?!”
Section 4.6 (Page 2 of 2)
ROYALTY REDUCTIONS, DEFERMENTS AND CAPS
Deferments
Often the basis on which an Author’s Agent will accept a Royalty cut
or waiver is that should the play get through the poor Box Office
period and start to make a weekly profit paying normal Royalties,
then any Royalties that have been reduced or deferred should start
to be paid back to the Royalty Participants over a period of time.
This is called Deferment and may be the price the Producer has to
pay to get help when it is most needed. Take care, however, as
Deferments over a long period can build up and make any possibility
of future weekly profits very remote.
Part of a Producer’s skill must be to negotiate areas of possible savings
when a production fails to sufficiently attract and, of course, to get the best
possible production values within a finite budget. Producers now rarely
open cold in the West End. Shows tend to open in the Provinces where good
financial deals can be struck to reduce the Capital at risk. But while the risk
is always present, if the Producer has done his/her homework diligently and
has got his/her sums right, the risk is properly assessed, managed and
minimised.
© Andrew Treagus
“So, you wanna’ be a Producer?!”
Section 5.1 (Page 1 of 2)
KEY POINTS TO CONSIDER IN RAISING FINANCE
FSMA Registration or Debenture Route?
Introduction
Often, one of the biggest headaches facing a producer is how
to obtain sufficient funds for a new production, and most are
on the look-out for opportunities to attract investment.
However, there are important considerations to be taken on
board when approaching potential new investors, large or
small.
The Financial Services &
Markets Act 2000
It is vital to remember that theatre producers seeking any form
of investment in a production are subject to the restrictions
imposed by the Financial Services & Markets Act 2000 (“the
FSMA”), which regulates capital raising (amongst other things)
in all areas of business. Under the FSMA there are strict
requirements relating to how investment is invited and
obtained.
A WARNING!!
You should never advertise for or solicit investment in any way,
whether by writing to people directly, in the press, through a
website or otherwise unless you have been professionally
advised that the requirements of the FSMA are satisfied. Any
investment agreement resulting from such an approach
contravenes the FSMA, is invalid, and the investor may be
entitled to repayment of the investment in full, plus
compensation for any losses suffered, regardless of the
circumstances. You may also be committing a criminal offence.
Preparing an investment
proposal
Before a producer circulates any investment proposal, it is
essential that professional advice is taken regarding its content
and how it may be distributed. In general terms, any invitation
to invest must contain warnings as to the risk of losing funds,
but there are also more specific requirements which a solicitor
or accountant will be able to clarify. Any document inviting
investment issued by a body or person not appropriately
registered under the FSMA must be approved prior to
circulation by a person authorised under the FSMA for this
purpose, for example a solicitor or an organisation regulated by
the Financial Services Authority.
The Debenture Route
Whilst a number of producers have set up their own financial
services companies which are registered under the Act so as to
be authorised to conduct certain types of investment business,
others have followed what has come to be known as the
“debenture route”.
Cont ....
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
“So, you wanna’ be a Producer?!”
Section 5.1 (Page 2 of 2)
KEY POINTS TO CONSIDER IN RAISING FINANCE
FSMA Registration or Debenture Route?
The Debenture Route
The central idea is that a producer circulates a document
detailing the production costs, and often background
information on the production, and asking investors for
investment, which will technically be treated as a loan of funds.
Repayment of the loan is contingent upon sufficient funds
being available each week after the payment of that week’s
running costs and if the production recoups a return is then
paid by way of distribution of production profits.
This form of loan repayable on a contingency might technically
be termed a “limited recourse debenture”, hence the term
“debenture route”. The advantage of this process is that the
producer is spared the not inconsiderable cost of complying
with the registration requirements laid down in the FSMA.
However, It is vital to note that there are restrictions as to the
categories of people to whom the approved document may be
sent. Individuals who have expressed a particular interest in
making an investment, such as those on the Angels list (see
below) may be contacted.
However, “cold-calling” or
unsolicited mailing to members of the public is unlawful.
Professional advice should be taken at every stage.
Until recently the legality of the debenture route had been
uncertain however both the Treasury and the Financial Services
Authority have now acknowledged that this is a valid way to
raise production finance. However, this does not remove the
need to seek professional advice.
The “Angels” List
SOLT holds details of members of the public who have
expressed an interest in investing in theatrical productions
(known as “Angels”), and SOLT members are able to send
copies of an approved document to those on the list. NB The “Angels” List is only accessible to SOLT members.
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
So, you wanna’ be a Producer?!”
Section 5.2 (Page 1 of 2)
COVER YOURSELF: INSURANCE HINTS
Prepared by Walton & Parkinson Limited
Insurance Brokers
20 St Dunstans Hill
London EC3R 8PP
Tel: 0845 218 4140
Fax: 0845 218 4141
Email: [email protected]
Introduction
Theatrical productions need to have some insurance by law and
quite a bit more through prudence. Benjamin Franklin said that
“in this world nothing can be said to be certain, except death
and taxes” and it is true that only rarely can future events be
predicted with absolute confidence. It is therefore vital to try
to avoid, or at least to minimise, the unpleasant results of the
unexpected.
Types of Insurance Policies
for theatrical productions
Insurance policies fall into four basic categories:• Covering physical effects for loss or damage
• Covering third party liabilities: injury to persons or damage
to property
• Covering business interruption or cancellation of one or
more performances
• Covering personnel: either as key people to a production in
which their non-appearance would force its cancellation, or
for those involved in hazardous work, or because they are
travelling abroad.
Each of the four types of insurance can be broken down into
sub-divisions specifically referring to the type of work you will
be undertaking.
Loss or Damage
Insuring against loss or damage to physical assets in the case
of a drama or musical would cover sets, props, costumes,
lighting and sound equipment, musical instruments, skips, wig
blocks and all other production material including front of house
photographs etc. All such items need insurance protection
against loss or damage all the time whilst they are your
responsibility; including when in transit, when in use or when in
temporary storage.
Money should also be insured against loss.
© Walton & Parkinson Ltd
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
“So, you wanna’ be a Producer?!”
Section 5.2 (Page 2 of 2)
COVER YOURSELF: INSURANCE HINTS
Employers Liability and
Public Liability
Every employer is required by UK law to have Employer’s
Liability Insurance, which provides up to £10 million indemnity
for any employee who suffers a work-related accident or illness.
A minimum of £2 million indemnity is recommended by insurers
for Public Liability claims involving injury to other persons or
damage to third party property caused by the negligence of the
Insured.
Business Interruption or
Cancellation of an Event
There could be loss or damage to the theatre, sets or
equipment, or one or more of the cast might fall ill or have an
accident. If a tour is cancelled then you might well suffer loss
of fare monies and transportation costs as well.
Personnel
For those involved in hazardous or potentially hazardous work
during performance or fit-up, Equity requires that producers
take out appropriate insurance for death, loss of limbs, eyes
etc. and permanent total disablement for a sum of not less than
£30,000 and weekly benefits for temporary total disablement
relating to between 75% and 100% of the individual’s normal
earnings.
If travelling abroad, you have to take out Travel Insurance
involving temporary Life Insurance, Medical Insurance, Personal
Effects and subsistence costs if the cast’s return is delayed.
Costs
The cost of the relevant insurance for your particular
production depends upon numerous factors such as
reinstatement values of physical assets, the payroll, the likely
costs and commitments in the event of a cancellation, the age
and health record of artists and sometimes the nature of the
work involved. Invariably, the cost of the insurance amortized
over the period of the production is often one of the smallest
elements of the budget.
It would appear that few insurance companies have much
experience of theatre, so it is advisable to use a specialist
broker who will be able to assess your needs and provide
quotations for cover with a proper understanding of what your
production involves.
It is the insurance broker’s role to
evaluate the risk factors and match the risks involved with the
appropriate insurance - bought at the best price commensurate
with breadth of cover and the security of the insurer, coupled
with their concern to settle claims fairly and promptly.
© Walton & Parkinson Ltd
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
“So, you wanna’ be a Producer?!”
Section 5.3 (Page 1 of 1)
MARKETING AND ADVERTISING
PUBLICITY AND PRESS REPRESENTATIVES
Marketing and
Advertising
The marketing and advertising of a production are so dependent on the
particular circumstances of each production that it is impractical to generalise
here. The best way for new producers to find out about this is to approach
the experienced theatre practitioners in the field and ask them to make a
proposal for the production.
It is not always necessary to have the advertising and marketing with the
same company. However, on smaller productions such as plays, some
companies may not be prepared to just take on one or the other as their
margins may be too tight. Also the producer’s costs will probably be
increased if they use separate companies for marketing and advertising. In
any event it is advisable to go to those who are experienced in theatre
marketing and advertising.
The principal
practitioners are:-
AKA
First Floor, 115 Shaftesbury Avenue, London WC2H 8AF
020 7836 4747
http://www.akauk.com
Dewynters plc
48 Leicester Square, London WC2H 7QD
020 7321 0488
http://www.dewynters.com
A full list can be found in ‘Contacts’ or in theatre programmes for productions,
which usually credit advertising and marketing companies working on the
production.
It is usual to pay an up-front marketing fee, plus a weekly fee. There may
also be a “design” or “concept” fee. Agencies receive an inside commission
for advertising space booked and the producer will only have to pay for the
artwork.
Publicity and Press
Representatives
It is essential to use a Publicity and Press Representative who is experienced
in theatre productions. As with advertising and marketing, producers are best
advised to meet with a few practitioners and ask them for their proposals. It
is usual to pay an up-front fee plus a weekly retainer for as long as the
production runs. Expenses are also payable, including the cost of press
releases, postage, photos etc. A full list of Publicity and Press Representatives
can be found in ‘Contacts’.
© Stage One
Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: [email protected].
“So, you wanna’ be a Producer?!”
Section 5.7 (Page 1 of 2)
SOME PROFESSIONAL ADVISERS
(This list is not comprehensive - for others see British Theatre Directory)
SOLICITORS
Campbell Hooper
35 Old Queen Street
London SW1H 9JD
Tel: 020 7222 9070
www.campbellhooper.com
Mishcon De Reya
Summit House, 12 Red Lion Square
London WC1R 4QD
Tel: 020 7440 7000
www.mishcon.co.uk
Clintons
55 Drury Lane
London WC2B 5SQ
Tel: 020 7379 6080
Olswang
90 High Holborn
London WC1V 6XX
Tel: 020 7067 3000
www.olswang.com
Davenport Lyons
1 Old Burlington Street
London W1S 3NL
Tel: 020 7468 2600
www.davenportlyons.com
Russell-Cooke
8 Bedford Row
London WC1R 4BX
Tel: 020 7405 6566
www.russell-cooke.co.uk
Denton Wilde Sapte
5 Chancery Lane, Clifford’s Inn
London EC4A 1BU
Tel: 020 7242 1212
www.dentonwildesapte.com
Barry Shaw
13 Blackheath Village
London SE3 9LA
Tel: 020 8297 8899
Goodman Derrick
20 Fetter Lane
London EC4A 1PT
Tel: 020 7404 0606
www.goodmanderrick.com
The Simkins Partnership
45-51 Whitfield Street
London W1T 4HB
Tel: 020 7907 3000
www.simkins.com
Harbottle & Lewis
Hanover House, 14 Hanover Square
London W1R 0BE
Tel: 020 7667 5000
www.harbottle.com
Tarlo Lyons
Watchmaker Court, 33 St. John's Lane
London EC1M 4DB
Tel: 020 7405 2000
www.tarlolyons.com
ACCOUNTANTS
Baker Tilly
2 Bloomsbury Street
London WC1B 3ST
Tel: 020 7413 5100
www.bakertilly.co.uk
Blinkhorns
27 Mortimer Street
London W1T 3BL
Tel: 020 7636 3702
www.blinkhorns.co.uk
Breckman & Company
49 South Molton Street
London W1K 5LH
Tel: 020 7499 2292
Buzzacotts
12 New Fetter Lane
London EC4A 1AG
Tel: 020 7556 1200
www.buzzacott.co.uk
Jon Catty & Co.
118-120 Wardour Street
London W1F 0TU
Tel: 020 7439 9078
Collins & Company
Second Floor, 116 College Road
Harrow, Middx HA1 1BQ
Tel: 020 8427 1888
Halperns
25-31 Tavistock Place
London WC1H 0XF
Tel: 020 7391 4500
Nyman Libson Paul
Regina House, 124 Finchley Road
London NW3 5JS
Tel: 020 7433 2400
www.nymanlibsonpaul.co.uk
“So, you wanna’ be a Producer?!”
Section 5.7 (Page 2 of 2)
SOME PROFESSIONAL ADVISERS
(This list is not comprehensive - for others see British Theatre Directory)
INSURANCE BROKERS
Gordon & Co.
2 Sekforde Court
217 St Johns Street
London EC1R 4LY
Tel: 020 7251 2255
Walton & Parkinson Ltd
20 St Dunstans Hill
London
EC3R 8PP
Tel. 020 7929 4747
Opus Insurance Services Ltd
97-99 West Regent Street
Glasgow G2 2BA
Scotland
Tel: 0141 333 3907
www.opuscompany.com
USEFUL PUBLICATIONS
Box Office Data Report
The Society of London Theatre
32 Rose Street
Covent Garden
London WC2E 9ET
Tel: 020 7557 6700
www.officiallondontheatre.co.uk
British Performing Arts Yearbook
Rhinegold Publishing
241 Shaftesbury Avenue
London WC2H 8TF
Tel: 020 7333 1721
www.rhinegold.co.uk
British Theatre Directory
Richmond House Publishing
3 Richmond Buildings
London W1D 3HE
Tel: 020 7224 9666
www.britishtheatredirectory.co.uk
Complete Guide to London’s West End Theatres
(1994)
The Society of London Theatre
- address as above -
© Stage One
Contacts
Spotlight Publications
7 Leicester Place
London WC2H 7RG
Tel: 020 7437 7631
www.spotlightcd.com
Disabled Access Guide to London’s West End
Theatres
The Society of London Theatre
- address as above The Spotlight
Spotlight Publications
- address as above The Theatre List
The Society of London Theatre
- address as above West End Theatre Audience Report
The Society of London Theatre
- address as above The Wyndham Report (1998)
The Society of London Theatre
- address as above -