Broadway Grosses: Week Ending 7/17/16- Page 4

[Liza's Headband]

Posted: 7/21/16 at 12:27pm

Sure, although it can be a bit more complicated than that depending on contractual arrangements and other information the public isn't privy to; especially if someone (or something) is being given a percentage/cut of the net profit. In that case, the percentage/cut wouldn't be factored into the weekly running costs but would obviously reduce the profits that can be returned to investors. That only further delays a possible recoupment. Most are a percentage/cut of the gross box office receipts, such as royalties pools, but there are exceptions to this. HAMILTON comes to mind almost immediately. 

 

Edited for clarity: when I refer to "profit," I'm speaking to the production's funds leftover after all weekly expenses have been paid -- not an individual investor's "profit" or ROI (return on investment). The capitalization costs would have to be paid back with those profits/funds first. That is a recoupment. Beyond the recoupment, everything is purely profit for the production and its associated investors. 

Updated On: 7/21/16 at 12:27 PM

[buhbuhbilly]

Posted: 7/21/16 at 12:31pm

for shows that close and do not recoup, I would be curious to know by how much they miss their marks. 

[neonlightsxo]

Posted: 7/21/16 at 12:41pm

...usually by a lot?

[HogansHero]

Posted: 7/21/16 at 1:03pm

Sammytravels said: "So without sounding ignorant and dumb, can someone tell me I'm right in thinking this is how recouping actually works?

If a show costs $10 Million to get off the ground, has a weekly cost of $700k a week, ans is roughly bringing in $1 Million a week, would the following actually be about right?

if you take out the running costs, that leaves $300k a week, which to recoup the £10 Million, would take 33 weeks. Only after that, they would make a profit for investors?

These figures are just off the top of my head, but trying to understand how it works! "

Sammy you have the basic concept, recognizing that there are a variety of exceptions possible. One other thing to bear in mind is that the reported grosses are "gross grosses" meaning that fees such as credit card and ticketing fees and the like come off before it hits the production's bank account. So as a rule of thumb, cut them by 10% before doing the math.

[HogansHero]

Posted: 7/21/16 at 1:06pm

buhbuhbilly said: "for shows that close and do not recoup, I would be curious to know by how much they miss their marks. "

there is no answer to that. Some shows lose everything, some lose more than everything (where priority loans are made), and some practically recoup but don't. Others hit at every intervening point along the continuum between them.

[Sammytravels]

Posted: 7/21/16 at 6:18pm

HogansHero said: "

Sammy you have the basic concept, recognizing that there are a variety of exceptions possible. One other thing to bear in mind is that the reported grosses are "gross grosses" meaning that fees such as credit card and ticketing fees and the like come off before it hits the production's bank account. So as a rule of thumb, cut them by 10% before doing the math.

 

"

Thanks Hogan. I knew it would be a little more complicated than I wrote, but good to know I'm kinda on the right page :) 

[Unknown User]

Posted: 7/21/16 at 6:25pm

This may be a dumb question, but I was recently looking at Wicked's weekly vs potential grosses on Playbill Vault, and for some weeks it looked like their weekly gross was higher than their potential gross. How is that possible?

[ethan231h]

Posted: 7/21/16 at 6:28pm

Its like that for a lot of popular shows

[Call_me_jorge]

Posted: 7/21/16 at 6:57pm

245601 said: "This may be a dumb question, but I was recently looking at Wicked's weekly vs potential grosses on Playbill Vault, and for some weeks it looked like their weekly gross was higher than their potential gross. How is that possible?

 

"

They sell standing room tickets.

[Notreallysilent 2]

Posted: 7/21/16 at 7:58pm

I might be wrong but I don't think wicked sells SRO tickets 

[Call_me_jorge]

Posted: 7/21/16 at 8:24pm

^ I think you're right. But that is true for Hamilton and Book of Mormon. I don't know about wicked. It could have to do with wicked selling more premium tickets.

[neonlightsxo]

Posted: 7/22/16 at 9:03am

Wicked does not sell standing room. There's no space at that theater for it.