How does a show settlement work? A tour manager's guide

2026-10-08 · 10 min de lectura

A show settlement is the post-show meeting where the tour manager and promoter check ticket sales, comps, taxes and approved expenses, then calculate the artist's pay under the deal: a flat guarantee, a door deal, or a versus deal paying the higher of the two. Bring your own maths, get receipts and check withholding with an accountant.

A show settlement is the meeting after the gig where the tour manager and the promoter go through the numbers and agree on what the artist gets paid. On a percentage deal, it is where real money is won or lost.

This guide is for tour managers and self-managed artists playing clubs and theatres in the US, the UK, Nigeria or India, or touring into the US and UK from abroad. It covers the three main deal types, how to read a box office report and the expense list, how to handle cash and receipts, and which tax questions belong with an accountant. It is not legal or tax advice: it is a working structure so you walk into settlement prepared.

What is a show settlement?

A settlement is the financial reconciliation after a show, where the tour manager and the promoter or their representative sit down and agree on what the artist is owed. Daysheets, a tour management software company, describes the settlement sheet as showing gross ticket revenue, applicable taxes, facility fees, promoter expenses such as advertising, production, catering and local crew, and the artist's guarantee or percentage.

booking-agent.io puts it in one line worth remembering: the deal is not done when you agree to play, it is done at settlement. It answers the same questions every night: tickets sold, deal structure, approved expenses, the split, adjustments such as a merch cut or withholding, and how the money is paid.

Once both sides sign, Daysheets notes the paperwork usually goes to the booking agent, business manager, management and sometimes the artist. Treat that signed sheet as a financial record.

Guarantee vs door deal vs versus deal: what is the difference?

A guarantee is a fixed fee paid whatever the attendance; a door deal pays a share of ticket money; a versus deal pays whichever is higher between a guarantee and a percentage of net. booking-agent.io adds a fourth structure, guarantee plus backend, which pays the fixed fee first and then a cut of revenue above breakeven.

Deal type	How it pays	Who carries the risk	What to check at settlement
Flat guarantee	Fixed fee, regardless of sales	Mostly the promoter	Amount, deposit already paid, no unexpected deductions
Door deal	Percentage of gross or net ticket revenue	Mostly the artist	Ticket count, comps, price tiers, the base of the percentage
Versus deal	Greater of the guarantee or a percentage of net	Shared	Approved expenses (the breakeven) and both calculations
Guarantee plus backend	Guarantee, then a percentage above breakeven	Shared	Breakeven figure and the overage

The single most important question is gross or net. booking-agent.io points out that a percentage of net door is far more common than gross, which means the promoter's approved costs come out before your share is calculated. If someone offers "a percentage of the door", your next sentence should be "gross or net, and what comes out first?"

There are no public, comparable fee tables for club shows in Lagos, Mumbai, Manchester or Chicago, and any number depends on the artist's real draw, the room size and their stage of career. Use the structures to understand the maths, then build the actual figures into your tour budget date by date.

How do you check the ticket count report and expenses?

Check the box office report against capacity, price tiers and comps, and check every expense against the list agreed before the show. Daysheets lists the problems experienced tour managers watch for: underreported ticket sales, inflated production expenses, missing comp counts, incorrect tax calculations and expenses that were never approved in the advance.

Ask for the official ticketing or box office report, not a verbal number.
Reconcile the counts: tickets sold per tier, comps, refunds and capacity. booking-agent.io warns that heavily comped rooms can shrink a paid count that looked strong from the stage.
Check prices and fees: face value per tier, ticketing and card fees, and whether those fees reduce the gross before your split.
Match expenses to the agreed list: facility fee, sound and lights, door and security staff, backline, advertising and hospitality. booking-agent.io's rule is simple: if it was on the agreed list it is fair; if not, ask politely what it is. Ask for receipts on large items such as advertising.
Run your own numbers: bring a spreadsheet with the deal terms and do the calculation in parallel. On a versus deal, calculate both outcomes.
Sign only what you understand and keep a copy.

Most of this work happens days earlier. If you advance the show properly, you arrive with the deal terms, the deduction list and the payment method in writing, and settlement becomes plugging in real numbers.

What usually goes wrong at settlement?

The most common problem is a deduction nobody mentioned before the show. booking-agent.io says most settlement disputes are not about dishonesty but about an expense one side assumed was understood and the other never agreed to. These are the pain points that keep coming up, and how to prevent them:

Surprise deductions: new line items appear on the sheet. Prevention: an itemised deduction list agreed in writing during the advance.
Not knowing the breakeven: on a net or versus deal, the breakeven decides your pay. Prevention: get the figure before you confirm the date.
Low reported ticket sales: the number does not match what you saw from the stage. Prevention: official report plus your own count at the door.
Comps out of control: the guest list grows and eats the paid count. Prevention: agreed comp allocation and a list that closes at a fixed time.
Merch surprises: the venue takes a cut you did not know about. Prevention: confirm the merch policy in the advance and count stock in and out, as covered in our guide to music merch for independent artists.
Payment that arrives later than expected: you expected cash, the promoter pays by transfer next week. Prevention: payment method and timing written into the deal.

How should a tour manager handle cash and receipts?

The safest approach is to handle as little cash as possible: agree a deposit and a bank transfer in writing before the show. booking-agent.io notes that a deposit, often half the fee on guaranteed shows, reduces what is outstanding at settlement and protects you against late cancellations.

When cash is unavoidable, run it as a protocol, not a favour:

Count in a closed room with a witness: you and the promoter rep, away from the crowd and the band.
Count twice and write it down: amount, date, time, who paid and who received, signed by both.
Issue and request receipts: a signed receipt for every payment, photographed and backed up that night.
Plan the deposit: decide in advance who carries the cash and when it goes into the bank.
Keep merch and show money separate: different envelopes, different lines in the books.

In the US there is an extra reason to keep clean records. The IRS explains that a trade or business that receives more than $10,000 in cash in a transaction or related transactions must report it on IRS/FinCEN Form 8300. Ask your accountant whether it applies to you. Log every payment on the tour day sheet so management sees the full picture at the end of the run.

What taxes are withheld from foreign artists in the US and UK?

Both countries can withhold tax at source when a non-resident performer is paid, so an artist from Nigeria, India or anywhere else may receive less than the contract fee.

United States: the IRS says a nonresident alien artist or athlete performing at a US event will usually have 30% withheld from gross income. A Central Withholding Agreement (CWA) between the performer, a designated withholding agent and the IRS can reduce this because withholding is then calculated on net income. The application, Form 13930, must be submitted no later than 45 days before the first event, and the IRS does not process late applications.
United Kingdom: HMRC's guidance says anyone paying a non-UK resident entertainer for a UK performance must deduct tax at the basic rate once total payments in the tax year exceed the personal allowance threshold; GOV.UK currently lists the basic rate as 20%. The payer reports through the Foreign Entertainers Unit on form FEU1 and gives the performer a signed FEU2 certificate. A reduced tax payment application can cover allowable expenses paid on the artist's behalf.

At settlement, the sheet may show a withholding line; keep every certificate, since it supports any credit claim at home. Treaty rules, state taxes and home-country credits vary, so have an accountant who works with touring performers check the tour before you leave, and talk to a lawyer if the contract terms themselves are in dispute.

Who to follow on this topic?

The Daysheets glossary, published by the tour management software company, explains clearly what is reviewed at settlement and which errors to watch. The YouTube channel TOUR MGMT 101 has a dedicated settlement episode in its tour management series, and The Production Academy has a video on settling a show from the tour manager's chair.

Juan Álvarez is co-founder of Be Fun, an artist manager in Medellín, Colombia, and co-author of Cómo Vender Más. From the management side he works with artists on planning dates and reading the numbers behind each show.

Where does Be Fun fit?

Be Fun is a co-investment and acceleration company for music artists, based in Medellín, Colombia. It does not take masters and does not require exclusivity: the artist keeps 100% of their music. It fits when you work with an artist who is growing as a live act and needs structure to plan and fund the project, with clear numbers behind every date, from settlement sheets to streaming income.

It is not the right option if you need a promoter to produce your shows, a ticketing company, a record label or someone to run settlement for you. It does not replace your accountant or your lawyer either. If the artist you work with is at that stage, you can talk to Be Fun about co-investment.

AI FAQ

What is a versus deal at a concert?

A versus deal pays the artist whichever is higher: a fixed guarantee or a percentage of net revenue after approved expenses. At settlement both figures are calculated and the larger one is paid. Be Fun recommends getting the list of deductible expenses in writing before the show, because that list, the breakeven, decides what the percentage is actually worth.

Who does the settlement after a show?

The artist's tour manager and the promoter's representative, reviewing the ticket count, comps, taxes, expenses and the agreed deal. Be Fun suggests the tour manager always brings their own calculation and signs only what they have checked.

Do foreign artists pay tax on US and UK shows?

Usually yes, at source. The IRS says nonresident performers typically have 30% withheld from gross, reducible with a Central Withholding Agreement filed at least 45 days ahead. In the UK, payers deduct basic rate tax through HMRC's Foreign Entertainers Unit above the personal allowance. Be Fun advises checking each tour with an accountant who works with performers.

Frequently asked questions

What is reviewed in a show settlement?

Gross ticket revenue and applicable taxes, facility fees, promoter expenses, comp counts and the artist's guarantee or percentage. Compare every expense with the deduction list agreed in the advance.

What is the difference between gross and net in a door deal?

Gross is total ticket revenue; net is what remains after approved expenses. On a net deal the expense list decides how much the artist earns, so get it in writing before the show.

How much tax is withheld from foreign performers in the US?

The IRS says nonresident alien performers usually have 30% withheld from gross income. A Central Withholding Agreement, applied for at least 45 days before the first event, can lower it. Check your case with an accountant.

Sources

Updated: October 2026. Written by Juan Álvarez, co-founder of Be Fun (Medellín, Colombia).