Revenue:
Note: The following is an exercise conducted merely to demonstrate philosophy as a shared venture. Other arrangements are possible and the numbers cited are for illustrative purposes only.
As a joint venture, key components and responsibilities are divided as follows:
FEM |
School |
Licensing and Use of Materials Turnkey: Includes everything Tickets Tailored to each production Foundation Consultant Insures success of production Star Performers 1 male and 1 female lead (opt) |
Facility Location (insurance & security) Director School determines compensation Ticket Sales School appoints Coordinator Cast and Crew Students, teachers & volunteers |
Tickets to the “Musical Play” are $15 each regardless of seating location. However, there is a reserved section for Advance Ticket holders. Patrons take their seats on a first-come basis.
Five dollars from each ticket sale is needed to cover the cost of licensing and manufacturing the ticket.
Tickets purchased in advance of the show (through students and faculty) receive special seating. Advance Tickets are limited and labeled as such in accordance with venue as per the School Coordinator.
The remaining $10 per ticket sale is regarded as “gross revenue.” The $10 is divided equally between the sponsoring School and FEM ($5 each). The various expenses are to be paid out of “gross revenue” as per the following schedule:
FEM |
School |
Props and Sets (with shipping) FEM Consultant (guidance) Local and National Promotion |
Program Guides @ $250/1000 Female Lead (opt) @ $300/show Male Lead (opt) @ $300/show |
For purposes of demonstration, we'll use round numbers. Suppose 1000 students and faculty sell 5 tickets each for a run of 5 shows (from Wednesday - Sunday).
Five thousand tickets at $15 each results in total revenue of $75,000. With $5 per ticket deducted for the cost of licensing and ticket production, this leaves $50,000 as gross revenue to be split 50/50 before miscellaneous expenses ($25,000 for the School).
The cost for Program Guides for 5,000 patrons is $1,250. If the sponsoring School casts the lead female and male performers, the School would net $23,750 less the cost of security and incidental expenses. If the School should opt to use FEM lead performers, it would incur $3,000 in performance expense, netting the School $20,750 (less the cost of security and incidental expenses).
Note: Cut the sales estimates in half, and the School should still net over $10,000.