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Contract! First one ever...


Telebass
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Will be doing our first ticket-selling, contracted gig in mid-June, and see that the contract has in it that we must pay 3% or £27, whichever is the larger, for PRS fees. Is this a standard deduction at a ticketed venue? The 3% of gross receipts bit is what the venue must pay PRS, to be sure, just that I wasn't aware that the band or whatever had to pay it; I thought it was simply what the venue had to stump up.

Any clarification most welcome!

PS I am waiting for an email from PRS, on this; MU seem unsure. It may depend on how we were booked - in this instance, by direct contact. No agencies or any other third party.

Cheers,
Den

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[quote name='chris_b' post='480369' date='May 5 2009, 08:51 PM']As far as I understand, the promoter pays the PRS.[/quote]


Well yeah, and the door take/ticket sales pays the promotor :)

If it's your first contract and your first gig at this venue I'd not create a fuss about PRS. just sell a few more tickets to cover the costs.

Edited by OldGit
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In order to obtain an entertainment licence I'm pretty sure the venue also has to have adequate PRS cover too. Whether the venue pass this cost on to the promoters and/or artists is very much down to negotiations and contracts. Thats my take on it though I may well be totally wrong.

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Sorry to 'jack a little but I have a sort of relevant question.

If you have one member of the band who writes the songs, would the band have to go through PRS to distribute extra cash to him since they are kind of covering the individual's work? Or would the fact he's playing in the band negate that?

And if he left the band, would they have to pay (through PRS?) to play the songs the former member wrote?

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[quote name='Eight' post='480740' date='May 6 2009, 10:52 AM']Sorry to 'jack a little but I have a sort of relevant question.

If you have one member of the band who writes the songs, would the band have to go through PRS to distribute extra cash to him since they are kind of covering the individual's work? Or would the fact he's playing in the band negate that?

And if he left the band, would they have to pay (through PRS?) to play the songs the former member wrote?[/quote]

If I understand your question correctly, all that the songwriter has to do is to join PRS to get any royalties due to him. The rest of the band don't have to join PRS as none of you are songwriters (unless of course you write for other projects, in which case if you want royalties for them you'd be advised to join).

The band don't pay directly for 'covering' his songs live, as that'd be down to the venue to pay PRS fees (though in Telebass' case the venue are trying to recoup those fees from the band). PRS just collects royalties generated from public performances from the organisation making them available to the public, not directly from the band performing them.

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We've done a few gigs like this.

PRS at 3% of door receipts is standard. Never had the £27 cap. The way we've dealt with it is that its 3% of the gross sales, and is the first deduction prior to any band/promoter split.

So, for example, the door makes £1000. First deduction is £30 to PRS, then you can argue with the promoter about how to split the remaining £970.

PRS is not subject to tax, so if you are paying the venue the £30 to pass on, don't let them add VAT (which they've tried with us). If the venue are dealing with it then submit a setlist complete with artist/composer details.

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This often comes up at the larger venues we play and to be honest we've dealt with it in a case by case basis. Sometimes it has been deducted from the total gate and then the venue/band split has been made. In one case - which was similar to how yours sounds - it was deducted from our fee. As we were getting fairly well paid in any case and it was a venue that we wanted to play, we swallowed the cost.

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[quote name='jonsmith' post='480778' date='May 6 2009, 11:23 AM']....This often comes up at the larger venues we play and to be honest we've dealt with it in a case by case basis. Sometimes it has been deducted from the total gate and then the venue/band split has been made. In one case - which was similar to how yours sounds - it was deducted from our fee. As we were getting fairly well paid in any case and it was a venue that we wanted to play, we swallowed the cost....[/quote]
This is the "con". As I understand, the original intention was that PRS was a legitimate expense of the promoter, along with electricity, security, etc, and he paid it, not the artist. As usual the artist gets ripped off, but what's unusual about that!!! If the promoter doesn't ask for a list of songs and composers then you can be sure he's pocketing the PRS money.

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[quote name='chris_b' post='480792' date='May 6 2009, 11:35 AM']If the promoter doesn't ask for a list of songs and composers then you can be sure he's pocketing the PRS money.[/quote]

Which is why I've called PRS before and dobbed them in. :)
I don't mind paying PRS - but I do mind someone pocketing the cash on the sly.

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[quote name='chris_b' post='480792' date='May 6 2009, 11:35 AM']This is the "con". As I understand, the original intention was that PRS was a legitimate expense of the promoter, along with electricity, security, etc, and he paid it, not the artist. As usual the artist gets ripped off, but what's unusual about that!!! If the promoter doesn't ask for a list of songs and composers then you can be sure he's pocketing the PRS money.[/quote]

Indeed. In this case, we were given the partially completed PRS form to fill in with song titles and composer details. Of course I cannot be certain that they then paid the PRS, but in all other matters they were extremely professional & I actually believe that they did pass it on. It's a fairly well known venue in the area with some well-established artists performing there. As I said, we were reasonably paid and in fact we came away with our original intended fee. We'd built a contingency into our fee as the venue had indicated that this PRS deduction was their normal policy, but I suppose not everyone will do this.

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One of the points that I forgot to make is that the venue booked US exactly as if it were a pub - because we happen to know the guy who runs it and he likes what we do. This is not us asking to play there, they are asking us. No clue if that makes a difference, but seems to me like they should swallow it on that basis...

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[url="http://www.prsformusic.com/playingbroadcastingonline/live_venues_events/concertvenues/Pages/concertvenues.aspx"]http://www.prsformusic.com/playingbroadcas...certvenues.aspx[/url]

£30 or 3% of gross reciepts. Only poayable if people are paying to enter establishment and have come primarily to hear the music.

Seems strange that they don't just include the 3% directly in the ticket money at the door . Or have I missed something in your explination?

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[quote name='Telebass' post='482244' date='May 7 2009, 06:15 PM']...Except that's not the case...[/quote]

How are you getting paid? A %age of box office, or a fixed fee? If its a %age of box office why doesn't he lower your %age by 3% and take it at source. If its a fixed fee, then the more people attend the less you get. I don't get it. Are you paying him to play there?

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