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10 OUT OF 12

A contractual term for a long all-day actor (or crew) call. A typical contract will have at least one of these days, when the actors may be kept at work for 10 hours out of a maximum of 12. During the 12 hour period covered (e.g. 9am to 9pm) there will be either two 1 hour breaks or one two hour break for food, and a total of 10 hours of work. Whilst the work day is long, the intensity allows a great deal of progress to be made. American Actors’s Equity only allows a period of 10 out of 12 rehearsal during the 7 days before a performance opens.

A

ACCREDITED INVESTOR

An individual or entity that meets the financial or professional criteria established by the U.S. Securities and Exchange Commission (SEC) to participate in certain private securities offerings. For individuals, eligibility may be based on income, net worth (excluding the primary residence), or specified professional qualifications. Not every theatrical investment requires an investor to be accredited; eligibility depends on the offering.

ACTORS EQUITY ASSOCIATION (AKA…AEA OR EQUITY)

The Actors’ Equity Association (AEA), commonly referred to as Actors’ Equity or simply Equity, is an American labor union representing the world of live theatrical performance, as opposed to film and television performance (which is represented by SAG-AFTRA).

ADJUSTED NET PROFITS

Adjusted net profits (ANP) on Broadway is the difference between a show’s gross receipts and all production expenses and any compensation paid to third parties that is measured by net profits (for example, royalties paid to creatives.). ANP is then typically split evenly between the lead producer and the investors, with 50% going to each.

ADVANCE

An advance against payment for future services or future use of copyright material. Frequently (but not necessarily) expressed as “nonrecoupable” or “recoupable” in whole or in part from royalties or a portion of royalties. Advances are often paid to authors/composers for an “option” on their work and to directors and designers for their services to a production. The word “advance” may also be used to describe advance ticket-sales, or the tickets that are sold (and usually referring to the revenue behind those tickets) in advance of the performance date.

AFM – IN NYC LOCAL 802

The Associated Musicians of Greater New York, American Federation of Musicians Local 802, is an American labor union representing the professional musicians who play in the orchestras of Broadway shows.

AMORTIZATION

In production finance, amortization describes the allocation or recovery of an initial cost over a period of time. In theatre, people sometimes use the term when discussing how earnings may be applied toward recovering capitalization, although the precise payment schedule is governed by the production’s agreements.

ANGELS

Investors in a theatrical production. Usually referring to private individuals but can be used to include corporate investors as well.

APPROVED PRODUCTION CONTRACT (AKA…THE APC)

Sometimes also referred to as the “Dramatists’ Guild Agreement”. Refers to the standard form of production contract for plays (or the separate one for musicals) of the Dramatists Guild of America, the association that represents authors, lyricists, and composers. It is a very detailed printed document running to over 45 pages promulgated by the Dramatists Guild Inc as a form of agreement which it has recommended to its members as being fair and reasonable to both authors and producers. It is frequently adopted (often with supplements and amendments) by authors/producers in the United States, US territories and Canada, but rarely if ever (doubtless because of its complexity and unfamiliarity) in relation to productions outside those territories.

ATPAM

The Association of Theatrical Press Agents & Managers (ATPAM) is an American union organization for press agents, publicity and marketing specialists, company managers and house and facilities managers in the theatrical profession.

AVERAGE TICKET PRICE (ATP)

The average amount paid per ticket sold during a given period. Divide ticket-sale revenue by the number of paid admissions to calculate ATP. Producers track it alongside attendance and capacity to assess sales performance.

B

BACK-END

Compensation tied to a production’s future financial results rather than an upfront fee. A back-end participant may receive a negotiated share of profits or other specified receipts, subject to the terms and payment priorities in the governing agreements.

BILLING CREDIT

The contractual recognition a person or organization receives in a production’s advertising, programs, or other materials. Billing terms may specify wording, placement, relative prominence, and where the credit must appear.

BOX OFFICE

In its narrow sense refers just to the kiosk in the theatre-lobby where members of the public can buy tickets, but in a wider sense can be used to refer to the whole ticket retailing system which is usually controlled by the theatre management. Can also be used to refer to advance ticket sales, as in “How big is the box office?” meaning “How much have you made in advance ticket sales?”

BREAK EVEN

The point at which weekly box office receipts exactly equal running expenses so that there is neither a running surplus nor a running deficit.

BRITISH FLIP

A contractual structure where a UK theatre or producer retains a stake in a commercial transfer of a production to another market, often the US. Their financial interest “flips” after the show recoups its initial investment. Non-profit theatres often use this mechanism to maintain a stake in the financial upside of shows they help develop, without bearing commercial risk upfront.

BROADWAY

Refers to the theatrical performances presented in the 41 professional theatres with 500 or more seats located in the Theater District and Lincoln Center along Broadway, in the New York City borough of Manhattan. Along with London’s West End theatres, Broadway theatres are widely considered to represent the most commercially successful level of commercial theatre in the English-speaking world.

BUS AND TRUCK PERFORMANCES

Touring productions which transport the entire stage company and physical assets from place to place, presenting a small number of performances at each venue before moving on. In America (and sometimes elsewhere) they are often presented for a fixed fee (which forms the basis for calculation of royalties instead of box office receipts).

C

CAPITALIZATION

The estimated (as distinct from actual) cost of preparing a production up to the time of first paid public performance, as per producer’s budget, including deposits and a reasonable contingency reserve.

CAST ALBUM

A sound recording of the songs in a musical show featuring the cast or principal members of the cast of a particular production or productions.

CO-PRODUCER

A producer who reports to the LeadProducer and provides (finds or invests) money to finance a project. In many productions, the co-producer is more involved in the day-to-day production and included in meetings, reports, etc.

COBUG

The members of the Coalition of Broadway Unions and Guilds (COBUG) have labor contracts or work for or with the Broadway League and was established to strengthen the position of Unions and Guilds within the industry, to participate in decision-making that affects Broadway and the art and craft of theatre at large, and to educate the broader community about the collective role Coalition members play in keeping our industry vibrant and healthy. It is made up of 18 unions/locals, including AEA, SDC, IATSE, AFM, Teamsters, & SDC among others.

COMMERCIAL THEATRE

A business oriented approach to theatrical production in which the objective is to make a profit for the investors. Commercial productions and nonprofit theatre productions are neither inherently better nor worse than each other. Sometimes a play that has begun life in the nonprofit environment may go on to have a commercial run and vice versa.

COMPANY MANAGER

The company manager is not only the direct point of contact of any questions the actors might have but he or she is the direct contact from the management team to the actors. Kind of like the HR department for the show.

CONTINGENCY

Money included in a production budget to address costs that cannot be predicted with certainty. It can help absorb price changes, additional technical work, and other unplanned expenses without requiring an immediate new financing source.

COPYRIGHT

The exclusive legal property right to copy, perform, broadcast and/or adapt an original literary, dramatic, musical and /or artistic work, and/or a sound recording, film, program or typographical arrangement.

CREATIVE TEAM

The director, choreographer, scenic, costume, lighting, and, sound designers, music director, dramaturg and occasionally others.

D

DARK

A venue that has been closed to the public. Some theatres go dark temporarily during production periods, when the next show is in preparation on stage.

DESIGN RIGHT

The exclusive legal property right to reproduce for commercial purposes the original design of the shape or configuration of the whole or part of a three dimensional object (not mere surface decoration).

DEVELOPMENTAL PRODUCTION

Usually referred to as an “out of town tryout” but can also be done “in-town” in NYC. This is the first (or sometimes second or third) production of a new show to get it on its legs. Development productions generally do not generate revenue. They are in preparation for a commercial production (when investors will have the opportunity to recoup their investment.)

DIGITAL MEDIA

To include, but not be limited to, Internet, social media, and mobile advertisingDirector A theatre director or stage director is a professional in the theatre field who oversees and orchestrates the mounting of a show by unifying various endeavors and aspects of production. They lead the members of the creative team into realizing their artistic vision for it. The director thereby collaborates with a team of creative individuals and other staff to coordinate research and work on all the aspects of the production which includes the Technical and the Performance aspects. The technical aspects include: stagecraft, costume design, theatrical properties (props), lighting design, set design and sound design for the production. The performance aspects include: acting, dance, orchestra, chants, and stage combat.

DRAMA DESK AWARDS

Annual New York theatre honors recognizing work across Broadway, Off-Broadway, and Off-Off-Broadway. The awards are voted on by members of the Drama Desk, an organization of theatre journalists and critics.

DRAMATISTS GUILD OF AMERICA (DGA)

A national professional organization serving playwrights, librettists, lyricists, and composers. The Dramatists Guild advocates for writers’ rights and provides resources, model agreements, and professional support; it is not a collective-bargaining union.

DRAMATURG

They collaborate with the writer, director, and creative team to support the storytelling—researching context, analyzing structure and themes, giving script notes, and helping ensure clarity, cohesion, and intention throughout development and rehearsal.

E

ELECTRONIC RIGHTS

The right to reproduce a work on multimedia/internet or other means of computer transmission. Also referred to as “multimedia rights”.

ENGAGEMENT

The run of the Play/Musical at the Theatre, from first to last performance.

EQUITY HOUSE (US)

A theatre which can employ actors and stage management who are members of the Actors Equity Association. Members of the union are not permitted to work in non-Equity houses.

EQUITY TOUR

A touring production employing actors and stage managers under an applicable Actors’ Equity Association agreement. The specific contract governs minimum compensation, working conditions, benefits, and related employment terms.

EXECUTIVE PRODUCER

Is an experienced Lead Producer or General Manager who is hired to help produce a show and reports to the Lead Producer of that show.

F

FIRST CLASS STAGE RIGHTS

The right to present first class live stage performances of a work. There is no standard definition of “first class” but it is usually determined by reference to the size, location and reputation of the theatre, the use of professional performers and an experienced professional creative team, possibly the size of the budget and/or the standard of stage scenery and costumes, the length of anticipated production run and other such factors. In common usage that means Broadway, but could also refer to a major regional theater.

FIRST-CLASS PRODUCTION

A term used in theatrical rights and production agreements for a professional, large-scale stage presentation, commonly including Broadway productions. Its precise meaning depends on the contract and is not determined solely by budget or the presence of a star.

FOUR WALL

A deal in which the Producer is essentially renting the theater from the Presenter. In a “four-wall deal,” Presenters typically receive their Fixed Expenses, ticket commissions, and possibly a very small percent of any overage. The Producer assumes all the risk in a four-wall deal.

FRONT MONEY

Money invested in the early development of a theatrical production, before a full commercial capitalization is raised. Front money may pay for rights, readings, workshops, creative work, or other developmental expenses. Because it is committed at an earlier, riskier stage, it may carry additional economic benefits if the project proceeds, as specified in the investment agreement.

FROZEN (AKA…QUALIFYING PERIOD)

A specified number of consecutive performances (usually 21) within a specified option period, as a criterion for a producer to “qualify” for continuing stage rights and/or for subsidiary exploitation rights in other media to which s/he

G

GENERAL MANAGERS

General Managers advise the Producer on what needs to be done, and will then execute the Producer’s decisions, similar to a COO. Usually the General Manager’s experience and knowledge of Broadway will be an invaluable resource. General Managers perform the day-to-day functions required to mount a show and then keep it running. This person ensures the smooth running of the daily operations of the production through oversight of: accounting, general company business, front of house, information technology, production, marketing, education, and general operations.

GENERAL PARTNER (GP)

In a limited partnership, the partner responsible for running the business and making management decisions, generally with broader liability than limited partners. Many Broadway productions instead use LLCs, whose management roles are described in their operating agreements.

GRAND RIGHTS

The performing rights in a dramatico-musical work (the legal definition of a musical.)

GREY ZONE

The Grey Zone is a royalty payment threshold used when a show’s Gross Weekly Box Office Receipts (GWBOR) do not exceed 110% of Weekly Operating Expenses. This alternative structure protects royalty participants in weeks of modest box office performance, while aligning payouts more closely with actual profitability.

GROSS POTENTIAL

The maximum amount an engagement can possibly earn based on calculations involving ticket prices, seating capacity, and the number of performances.

GROSS WEEKLY BOX OFFICE RECEIPTS (GWBOR)

Amounts received each week from the sale of tickets for performances after deducting, credit card and agency commissions and certain other specified standard deductions of a similar nature in accordance with local theatrical practice in the territory concerned.

GUARANTEE

A deal in which the Presenter (a venue that presents tours) pays the Producer a guaranteed, fixed amount of money for an engagement, plus a percentage of the NAGBOR, sometimes called a royalty, or more commonly referred to in recent years as a “variable guarantee.” A “guarantee deal” also typically includes local documented expenses and fixed expenses, and Presenters usually receive a percentage of the overage. The Presenter assumes all the risk on a guarantee deal.

H

HOLD-BACKS

Arrangements whereby authors and other copyright owners agree to “hold-back” on releasing certain reserved rights for a specified period whilst the grantee of other rights is exploiting those other rights. An example would be for an author to agree not to release amateur performance rights or motion picture rights without the producer’s consent whilst the producer has the right to present professional performances, or not to release music publishing rights before the producer has put out a cast album.

HOUSE SEATS

An allocation of seats for each performance at the theatre which, by arrangement between producer and theatre manager, are specially reserved for disposal by the producer to persons connected with the show, and friends and associates. House seats are usually released to the box office for sale, if not disposed of by or under permission of the producer at least 48 hours before each performance. The producer may put one or two pairs of house seats for each performance at the disposal of favored individuals, such as author, composer, and possibly certain privileged members of the creative team or co-producers. It is usual to require all house seats to be paid for at regular box office prices even if used by the producer himself, so that royalty holders and investors are not disadvantaged.

I

IATSE

The International Alliance of Theatrical Stage Employees, or I.A.T.S.E., (full name: International Alliance of Theatrical Stage Employees, Moving Picture Technicians, Artists and Allied Crafts of the United States, Its Territories and Canada) is a labor union representing nearly 122,000 technicians, artisans and crafts persons in the entertainment industry, including live theatre, motion picture and television production, and trade shows.

INTERNATIONAL ALLIANCE OF THEATRICAL STAGE EMPLOYEES (IATSE) LOCAL ONE

The New York-based IATSE local representing stagehands and related technicians working in theatrical and other entertainment venues. Its members perform essential backstage work, including scenery, lighting, sound, and stage operations.

INTIMACY DIRECTOR

A member of the creative team who works with the director and actors on any scenes involving nudity, intimacy or sexual contact. The role of a fight director is well-documented and a vital role when any on-stage combat is involved, to choreograph the movement to ensure the actors’ safety. The Intimacy Director does the same job to ensure the actors are comfortable with the scene, and that the movements are choreographed to fulfil the directors’ requirements, and that the movements do not change during the run of performances.

INVESTOR QUESTIONNAIRE

A form prospective investors complete to provide information relevant to their eligibility and suitability for a theatrical investment, including any applicable accredited-investor status. Investors may generally be asked to confirm eligibility by self-attesting in the questionnaire, although some offerings require additional verification.

L

LIMITED PARTNER

A participant in a limited partnership who contributes investment capital but generally does not manage the enterprise. The person’s economic rights and legal responsibilities are determined by the partnership agreement and applicable law. Theatre investments may also be structured through LLC memberships.

LOAD IN, LOAD OUT

As these expressions themselves indicate, they apply to the process of getting the stage scenery, props, costumes, sound and lighting equipment etc into the theatre; the assembly, positioning and fitting up of same in the theatre; and, after eventual closure, the process of removing all these items from the theatre, cleaning up and getting out of the theatre so as to leave it in the same condition you found it.

LOCAL DOCUMENTED EXPENSES

Expenses as estimated and set forth on the attached Producer Rider. By time of settlement, Presenter shall furnish complete, accurate and detailed substantiation and documentation with documented invoices and proof of payment, subject to Producer’s approval, not to be unreasonably withheld.

M

MAKE-UP ARTISTS AND HAIR STYLISTS GUILD LOCAL 798

An IATSE local representing professional makeup artists and hair stylists in entertainment, including eligible stage, screen, and television work. Members help create, maintain, and reproduce performers’ hair and makeup designs.

MAKING THE NUT

(Colloquial term) The ‘nut’ is a break-even point, after which the show can pay its bills. It’s calculated either show by show or for the length of the production (some costly shows don’t make their ‘nut’ until well into the run).

MARKETING BUDGET

The funds planned for building awareness and selling tickets to a production. Typical spending categories include paid advertising, creative materials, publicity support, digital campaigns, and audience-development efforts.

MERCHANDISING

The marketing of merchandise, featuring the title and/or logo and/or artwork and/or characters of a show in order to enhance the sale of such merchandise e.g. on tee shirts, coffee mugs, magnets, stationery etc.

MINIMUM INVESTMENT

The smallest amount a production will accept from an individual investor for a particular offering. The threshold is set in the offering materials and can differ from show to show or between financing rounds.

MINIMUM WEEKLY GUARANTEE (MWG)

A contractual floor on the amount payable to a participant each week, even if the percentage-based payment would otherwise be lower. The covered person, calculation, and any offsets depend on the particular agreement.

MUSIC PUBLISHING RIGHTS

In a theatrical context music publishing rights are usually reserved to author/composer when granting the right to a producer to present a stage musical. In this context, “music publishing” can be contractually defined according to taste but is usually confined to: i. sound recordings of individual songs from the show in a non-dramatic context; ii. synchronization of musical compositions from the show with the sound track of a motion picture; iii. publication of printed sheet music and iv. non-dramatic “small performing rights” in individual songs of the kind administered by collection societies such as the PRS. (See “small rights”)

N

NET ADJUSTED GROSS WEEKLY BOX OFFICE RECEIPTS (NAGWBOR):

Sales of tickets for a given week: – Less any tax or taxes, if applicable, as outlined on the attached Producer Rider and actually collected and paid to governmental tax authorities. – Less facility fee, when included in the ticket price and as outlined on the attached Producer rider. – Less ticketing commissions as outlined on the attached Producer Rider. – Less credit card processing fees Amounts received each week AFTER the sale of tickets for performances after deducting taxes, credit card and agency commissions, theatre costs, IP commissions, and certain other specified standard deductions of a similar nature in accordance with theatrical. Royalties will often be expressed as a percentage of the net box office receipts.

NET GROSSES

Ticket-sale revenue remaining after the deductions allowed under the relevant reporting or contract definition. Because allowable deductions differ, producers should check whether a statement means gross box office receipts, net box office receipts, or another defined measure.

NEXT MONIES

A payment to a Party (Producer or Presenter) from funds available after Presenter pays the Flat Fee, Variable Fee (if applicable), and Local Expenses but before a division of Overages between the Parties.

NON-EQUITY TOUR

A touring production whose actors and stage managers are not engaged under an Actors’ Equity Association touring agreement. Employment terms, pay, and benefits are established under the applicable non-Equity contracts and laws.

NON-PROFIT THEATRE

Productions that do not yield a profit for individuals or an organization. All money is put back into theatre.

O

OFF-BROADWAY

New York professional theatre generally presented in venues with seating capacities of 100 to 499, rather than in Broadway-designated houses. The designation primarily concerns the producing and venue context, not the artistic ambitions or quality of a show.

OFF-OFF-BROADWAY

A category of New York theatre generally associated with intimate venues seating fewer than 100 people. Such productions often provide space for new writing, alternative staging, and emerging artists.

OPENING NIGHT

The first paid public performance after the end of “previews.” Tickets are usually by invitation only and many are complimentary. In regional theatres this is often when press comes to review the show. On Broadway, the press reviews the show the week prior to opening, and the reviews are published on opening night.

OPERATING AGREEMENT

The legal agreement governing a production’s limited liability company (LLC). It sets out the rights and obligations of the members, management authority, allocation of profits and losses, distribution procedures, and other terms governing the company and the investment.

OPTION

A contractual agreement between a potential theatrical producer, a production company or an individual, and a writer or third party who holds ownership of a screenplay or musical play. The agreement details the exclusive rights including the specified time period and financial obligations. The producer has to advance the essential elements, such as financing and/or talent, towards the creation of a musical based on the musical play.

OUTER CRITICS CIRCLE AWARDS

Annual honors recognizing achievements in New York theatre, including Broadway and Off-Broadway. They are administered by the Outer Critics Circle, an association of critics and arts journalists covering New York productions.

OVERAGE

The amount of NAGWBOR available for distribution after the payment of the Flat Fee, the Variable Fee (if applicable) and the Local Expenses, whether settlement is weekly or cumulative.

P

PAPER THE HOUSE

Giving away tickets to a performance to make a show seem to be selling better than it actually is. Can be a marketing technique to start generating ‘word of mouth’ interest, or simply a way to fill empty seats and avoid the perception that the show isn’t selling well.

PARI-PASSU

is a Latin term that means “on equal footing” and refers to how investors are treated equally. Neither takes seniority over the other, and they are both entitled to pro-rata payment based on their initial investment.

PER DIEMS

Fixed amounts payable to certain individuals, such as authors, composers and production personnel to cover their daily subsistence expenses such as meals, transport etc whilst working away from the place where they live.

PINK CONTRACT

A pink contract refers to an agreement between The Broadway League on behalf of its members and Disney Theatrical Productions, and the International Alliance of Theatrical Stage Employees (I.A.T.S.E). Individuals who hold a “pink contract” are often called “pinks” or “pink contract crew” and are employed directly by the production. These include stagehands, wardrobe personnel, make-up artists, hairdressers and motion picture operators on touring shows and Broadway. They frequently work out-of-town tryouts and then come with the show to Broadway. Pinks represent the production, and work side-by-side with local Union stagehands who are employed by theater owners (e.g. Local One in NY). Pinks are sometimes referred to as “road crew” or “show crew” to distinguish between local or House crews. The term “pink contract” stems from the pink-colored paper on which the contracts were written.

PITCH DECK

A concise presentation used to introduce a production to possible investors or other partners. It commonly outlines the show, creative team, production plan, budget assumptions, and proposed investment structure; formal offering documents govern the investment terms.

PRO RATA

is a Latin term that means “in proportion.” It usually refers to the proportional distribution of obligations and profits. For example, if one investor paid for 90% of a show and another paid for 10%, the profits would be distributed proportionally to each of them.

PRODUCER

The individual who has the greatest involvement and oversight over the play’s financing, operations, and management.

PRODUCTION COSTS

The actual capital cost of preparing a production up to the time of first paid public performance (including a reasonable “contingency reserve”). Note that the word “costs” is interchangeable with “expenses”.

PRODUCTION SCHEDULE

A timetable for preparing a production ready for opening, including dates for matters such as casting auditions, completion of designs, completion of costumes, stage sets and properties, advertising launch, box office opening, commencement of rehearsals, dress rehearsal, “get – in” to theatre, first preview and opening night.

PROFIT PARTICIPATION

A contractual right to receive a specified share of a production’s profits, often after investors have recouped their capital. Profit participation may be allocated among investors, producers, and other participants. The definition of profits, applicable deductions, and timing of payments are controlled by the governing agreements.

Q

QUALIFYING PERIOD

A specified number of consecutive performances (usually 21) within a specified option period, as a criterion for a producer to “qualify” for continuing stage rights and/or for subsidiary exploitation rights in other media to which s/he may become entitled. Sometimes also used as the yardstick for “merger” of rights, namely the merger of different strands of copyright material into a composite whole in order to preclude separate copyright exploitation of the component parts.

R

RECOUPMENT

The point at which all “production costs” (i.e. the capital cost of mounting a production up to opening) have been “recouped” out of the surplus of box office revenue over running expenses. It follows that “double” or “125%” or “150%” recoupment is the point at which double or 125% or 150% (as the case may be) of “production costs” have been “recouped” out of the surplus of box office revenue over running expenses.

RECOUPMENT CHART

A financial projection illustrating how a production might return its capital to investors under various assumptions about box office receipts, weekly expenses, and other revenues or costs. A recoupment chart is a model, not a guarantee, and actual results may differ substantially.

RECOUPMENT PERIOD

The length of time it takes for a production to return the relevant initial capital to its investors under the agreed recoupment terms. Forecasts may express this as a projected number of operating weeks, but actual timing depends on results.

REGULATION D / RULE 506(B)

Regulation D is a set of SEC exemptions that may allow companies to offer securities without registering a public offering. Rule 506(b) generally permits an unlimited amount to be raised through a private offering, but prohibits general solicitation or advertising. It allows sales to an unlimited number of accredited investors and up to 35 non- accredited investors meeting specified sophistication requirements, subject to applicable disclosure and other rules.

REPERTORY PERFORMANCES

Performances by a so-called “resident or semi-resident” stage company under the same management as part of a repertoire of a number of works pre-programmed for a fixed season at a fixed venue or venues.

REPRODUCTION

A mirror-image recreation (as nearly as circumstances permit) of another production of a particular work including the recreation of the stage directions, designs and other production elements of the original production.

RESERVE

Funds retained by a production rather than immediately spent or distributed, to cover anticipated obligations, contingencies, cash-flow needs, closing costs, or other expenses. The amount and use of reserves are determined by the budget, governing agreements, and management decisions.

REVPAS

Revenue Per Available Seat is a KPI (key performance indicator) that measures how efficiently a show is selling tickets. It basically combines average ticket price with the % of available capacity sold. It’s calculated by taking the total gross ticket sales for a given performance and dividing it by the number of seats that were for sale for that performance (removing comps, unsold holds, etc.)

ROAS (RETURN ON ADVERTISING SPEND)

ROAS (Return on Ad Spend) is a key advertising performance metric used to measure the effectiveness of an advertising campaign. It calculates the revenue generated for every dollar spent on advertising. The formula is ROAS = Revenue from Ads / Cost of Ads. For example, if you spend $1,000 on an ad campaign and generate $5,000 in revenue, your ROAS would be: $5,000 / $1,000 = 5 (or 500%) A ROAS of 5 means you earned $5 for every $1 spent on advertising. It helps advertisers evaluate the profitability of their campaigns and make data-driven decisions about ad budgets and strategy adjustments.

ROYALTY

Strictly means remuneration for the use of copyrighted material. Usually expressed as a percentage of box office receipts or other revenue but may be a “fixed” royalty e.g. a fixed sum per performance.

ROYALTY CAP

A limit on the amount of weekly box office receipts on which royalties are calculated (usually prior to Recoupment only), the excess being sometimes referred to as “exempt” box office receipts and sometimes merely being deferred so as to cut back in at a later stage of profitability. See comments under definition of “Royalty Pool”, the purpose and effect of which is very much the same.

ROYALTY POOL

Applies where an aggregate royalty is fixed for all or a specified class of royalty participants, to be shared between them in specified proportions (usually pro rata to their full royalties) instead of full royalties. As in the case of a royalty cap or deferral the purpose is to accelerate recoupment, or to delay closure of a production where it would not otherwise be financially viable to continue, or to enable a production to be presented where it would not otherwise be viable to present it. Sometimes the amount surrendered by a royalty pool is merely deferred and made to cut back in if and when the production reaches a specified level of profitability. The effect of the pool is to spread the risk more evenly between the producer, investors and royalty participants.

RUNNING EXPENSES (AKA OPERATING EXPENSES)

The weekly running expenses from the time of the first paid public performance (including producer’s royalty and office management fees). Again, the word “costs” is interchangeable with the word “expenses”. Sometimes also called “operating costs” or “operating expenses”.

S

SEASON SUBSCRIPTION

Broadway is dominated by commercial productions, but there are a small number of non-profit theater companies that produce shows on Broadway, and these companies offer season subscriptions. Each year, these companies program a season, usually made up of three to four productions, and by buying a season subscription you get a ticket to each of these productions. Subscriptions usually offer perks, the most important one being a substantial discount over single ticket prices.

SECOND CLASS (STAGE) RIGHTS

The right to present amateur, stock, repertory, condensed, tabloid and/or concert version performances of a work, and includes anything else not regarded as “first class”.

SETTLEMENT

The point at the conclusion of an engagement in a market when the Presenter and Company Manager reconcile all receipts and determine the engagement’s final profit or loss. The Presenter’s and Company Manager’s numbers must all match. If their settlements do not match, they must work to locate the errors or discrepancies until all final numbers are in sync.

SMALL RIGHTS

The right to present short live performances of individual musical compositions from a dramatico-musical work, in a non-dramatic fashion (i.e. without dramatic staging, costume or mime) usually in accordance with rules of collection societies such as the PRS (Performing Right Society) which limit such non-dramatic performances to not more than 25 minutes and not more than 25% of the whole work.

SPLIT WEEK

A split week refers to a touring engagement where a Broadway or theatrical production performs in two different cities within the same calendar week, typically with three or four performances in each location. This is contrasted with a full week engagement, where the show stays in one venue for the entire week (usually 8 performances). Split weeks are commonly scheduled in smaller markets or cities with more limited audience capacity, allowing producers to maximize reach and revenue by combining shorter runs into one travel week.

SPONSORSHIP DEAL

An arrangement where under a non-returnable sum of money is contributed to the revenue of a production in return for advertising or publicity or promotional services or special privileges relating to the production.

STAGE MANAGER

The Stage Manager is a key position in any successful theater production. The position has a unique function because it serves the dual function of assistant to the director and production staff during the rehearsal period and then becomes the person in charge of the production during the actual performance.

STAR PERCENTAGE

A negotiated form of performer compensation calculated as a percentage of a specified revenue measure, often box office receipts. It may supplement or replace other payments, subject to contractual floors, caps, and definitions.

STOCK PERFORMANCES

Technically means performances governed by US Equity’s standard form of contract for employment of actors in productions classified as stock, resident theatre or dinner-theatre type performances.

STOP CLAUSE

Stop clauses are standard in agreements between theater landlords and commercial producers. It allows a landlord to evict a show that falls below a certain level of ticket sales for two weeks in a row.

SUB LOAD-IN

The number of subscribers (”subs” colloquially) in a market. A healthy sub load-in is very appealing to Producers, as it guarantees there will be a certain amount of ticket sales since the show will be on season, and, therefore, part of a subscription package.

SUBSCRIPTION AGREEMENT

The agreement through which an investor subscribes for an ownership interest in a production entity, typically an LLC. It states the investment amount, representations and acknowledgments made by the investor, and the terms for accepting the investment, often together with an investor questionnaire and operating agreement.

SUBSIDIARY RIGHTS

Sometimes called “secondary” or “ancillary” or “residual” rights. The right to exploit a work in other media or in other ways, apart from [first class] live stage performances. Thus subsidiary rights may include any or all of (i) motion picture rights (ii) electronic rights (iii) merchandising and commercial usage (iv) cast album and also, possibly (v) second class stage rights if not within the principal rights granted. usually form the basis for calculation of royalties and are the principal source of production revenue.

T

TECHNICAL RIDER

The document attached to this agreement by Producer outlining the technical requirements of the production.

THE BROADWAY LEAGUE

Established in 1930, The Broadway League is the national trade association for the Broadway industry. Its 700-plus members include theatre owners and operators, producers, presenters, and general managers in North American cities, as well as suppliers of goods and services to the commercial theatre industry.

THE OF FOUR FIVE (OR 045)

This decades-old financial agreement on Broadway refers to a special contribution made by producers of 4.5% of weekly gross box office receipts into union benefit funds. Originating from the repeal of the NYC Amusement Tax in 1962, and which was crucial in ending the 13-day actors’ strike that year, this fund was created to redirect tax savings into pension plans for unionized theatre workers.

THEATRICAL WARDROBE UNION LOCAL 764

A New York IATSE local whose members perform wardrobe work for theatre and other entertainment productions. Their responsibilities can include dressing performers, costume maintenance, and wardrobe supervision.

TONY AWARDS

Annual awards celebrating achievement in Broadway theatre, presented by the American Theatre Wing and The Broadway League. Eligibility for producer awards follows Tony rules, including applicable producing-credit requirements; investing alone does not confer award eligibility.

U

USA

United Scenic Artists local USA 829, also known as United Scenic Artists of America (USAA), is an American labor union. It is a nationwide autonomous Local of the International Alliance of Theatrical Stage Employees. It organizes designers, artists, and craftspeople in the entertainment and decorative arts industries.

V

VARIABLE / DYNAMIC PRICING

Demand based ticket pricing for a performance(s) may be increased or decreased based on demand.

W

WEEKLY OPERATING BUDGET

A projection of the expenses required to run a theatrical production each week after performances begin. It may include salaries, theatre rent, advertising, general management, royalties, insurance, and other operating costs. Along with expected box office receipts, it is used to estimate weekly break-even and potential operating surpluses or losses.

WEST END

In a theatrical context reference to a production being presented in “the West End of London” is usually intended to mean presentation at a theatre which is a member of SOLT (Society of London Theatre) comprising major theatres in and around the West End of London (see Section 2.1).

WRAP

This is the amount that a show makes in ticket sales during a set period of time. A Broadway producer might refer to the day’s wrap, or the weekly wrap, when discussing how much money has been taken in at the box office.

Y

YELLOW CARD

A “Yellow card” show is a touring production that must use union labor. The required number of hands needed for each department on a unionized traveling show is listed on a Yellow card.

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