NRC BUYING FORMULAS: NEGOTIATING CONTRACTS TO TOUR BIG NAME ATTRACTIONS

A winning formula for us was to cross-collateralize the risks by block booking multiple markets.  Instead of giving the artist a guarantee of, say, 30k against 60% of the after-tax gross receipts, whichever was greater for three cities, we would offer a guarantee of 80k plus 60% of the after tax gross over 220k for ten concerts (ten markets).  By adding the additional markets we often had the negotiating clout to give the artist a lower guarantee on terms that would take them to percentage at a higher break point. This enabled us to retain all of the profits in our most viable markets while, at the same time, substantially reducing the risks in the smaller, more risky venues.  Although there was already a trend to provide national tour management for artists and attractions, it was still in its infancy. In the late sixties and early seventies, NRC had the biggest territory under management. NRC produced, or was a partner in nearly three hundred tours during the years that I was half owner of the corporation. It was a fast-moving and exciting time; definitely the most intense years of my professional life.