Download key points to consider when contracting a west end

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

1.8 Miscellaneous




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.















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.