Tag Archive for harrisburg

Bring Back The Door Deal

I guess it started when cocaine became an acceptable part of doing business in the live music industry. Certainly before my time, 82? 85?, but it’s effects are hurting my bottom line more recently than ever.

See, from what I’ve read, it usedta be that EVERY show was a “door deal” (how a band gets paid from a gig; usually a percentage of the total gross of the ticket sales or walkup at said band’s show is what the band earned for the night. $10 dollar ticket, 100 people paid, 75% of gross, the band earns $750.00.) Seems fair, right? This way, everyone is somewhat vested in the gig. The agent wants the band to earn as much as possible so he gets a fatter ten percent and therefore pushes the label and the publicist to help push the show in the individual market in tandem with the local promoter. And the local promoter wants the show to crush because, regardless of the turnout, he’s making twenty five percent (or whatever the deal is) of gross.

But that’s the downfall in the door-deal as well. It’s an honesty issue with the promoter.

From what I’ve read and heard, it usedta be that the local promoter settled the show honestly.

“There were 500 people here. They each paid ten dollars to see the show. Our agreement is that you receive seventy five percent of the proceeds. Here’s $3750 for you and $1250 for me. Let’s go do a shot!”.

But somewhere along the way (presumably sometime around the blizzard of eighty two) promoters started being shady.

“Hmm. The band’s up there playing. The tour manager is getting head on the bus. I’m gonna go settle. But lemme get another drink first. And do a quick bump. Let’s see here…WOW! Five grand! That’s…that’s some fucking cash! And man, my rent’s late. And my old lady needs a new pair of shoes. And MAN that’s some good blow. Well, let’s see here. They’ll never know if I tell them that only three hundred fifty people paid. That’s an extra…well, shit! that’s an extra fifteen hundred bucks for me!”

And soon there after, the bands started getting hip. Knowing there were five hundred in the club but they only got paid for three fifty. And the agent had to call the promoter and there was no email or slick communication available like there is today. So they duked it out on the phone. But what happened? Nothing. The band got fucked and went on to the next club in the next city and probably dealt with the same shit from the next guy.

Fast forward thirty years and we’re smack dab in the middle of the worst depression and economic downturn since the nineteen thirties. And what’s the first thing people cut back on in questionable economic times? Luxurious spending. Going out to dinner. Watching something On Demand instead of going out to a movie. Saving that fifty or sixty bucks they’d spend going to see a rock band they’ve never heard of at a place that’s going to probably be too loud, too far or it’s too cold and rainy to leave the house.

So here we are with more music touring the country than ever before and more Pitchfork buzz bands and Brooklyn is overflowing with plaid shirt wearing indie rock kids who make a slick video, get a couple hundred thousand views on YouTube and all of a sudden, the agent thinks they’re worth 100 paid on a Sunday night in Cleveland or Peoria or Charlottesville or Harrisburg at a $10 ticket so he quotes the band at $1,500 plus points and meals because they’re in a bus and have a tour manager and a merch guy and a drum tech….

Certainly there are bands that are worth every penny and a guarantee is almost more of a formality than anything. There are certain bands in every market that come with such a guaranteed buzz and hype from either the latest release or because they are simply that awesome that putting together a sellout offer is a no brainer.

But what about the up-and-comers? The bands that the average show goer is taking a chance on? Probably every club in America that has twenty or more nights per month of entertainment has two or three “anchor” shows – shows that either probably will or will have a great probability of selling enough tickets to make the night worth it for everyone involved – but what about the up-and-comers? Maybe a few people know the name but not that critical mass that fills a room on a Sunday night when the show is up against the Eagles and The Steelers and Boardwalk Empire and The Phillies (fuck, had I known the Phillies were going to do so well this year I wouldn’t have booked a single show for October!). What about those nights?

Sure, a band needs to eat. And one would hope that the promoter or the booker will do everything he can to make a night work -but the times they have been changing. And the consumer is much more well informed and has myriad options of spending his money. And seeing a band at a club or small venue is a COMMITMENT. Getting bodies in the door to spend their time, their hard-earned money and their Friday, Saturday or Sunday night instead of doing that myriad other things gets increasingly more difficult when some of the bigger promoters gouged prices SO high that the public physically revolted this past summer (A share of Live Nation stock is now trading at $9.77.) How much was the total of the service fee of the last ticket to a Live Nation show that you saw? Probably twelve? Fifteen dollars? A share of LiveNation stock now costs LESS than a service fee to one of their shows. Because they took AS MUCH as they possibly could from the public. Twenty bucks to park. Ten for a beer. Tee shirts? FORTY FIVE! And the service fees? Fifteen bucks a ticket? Shit, the show almost didn’t even MATTER!

And that was this past summer.

Nearly every show in a LiveNation arena or stadium had some sort of crazy giveaway involved because nothing was selling and the public became hip. They waited until the day-of to get a five dollar ticket in the parking lot. Or, in a lot of cases, FREE tickets.

And then, back in Peoria and Charlottesville and Harrisburg, local promoters are trying to get an agitated customer base of several million to come back to the clubs and buy tickets in advance for bands that might not have quite broken yet, but are undoubtedly quality and amazingly talented bands…

—–

I was at a conference last week with a pretty solid crew of regional promoters, agents and PR firms. It was small, maybe forty guys. But those forty guys were responsible for probably four or five hundred thousand tickets to their various festivals, band’s shows and events this past summer.

And on the second day of the conference, we talked as a group for about three and a half hours about how to increase ticket sales to live music events of any size.

And while some great ideas were bounced around, noone had the silver bullet. There’s no one thing that’s going to get more bodies in the door. But starting with taking some pressure off of an already stressed promoter who’s up against myriad competing factors is a good start. Relationships are built and trust is earned, not given.

But it starts with trust. The agent has to trust the promoter is going to push a show as hard as he can and genuinely exhaust every avenue of promoting that gig. He’s going to flyer other shows and advertise in the monthlies and reach out to the bloggers.

And then the tour manager has to trust the house manager that he’s going to settle on the actual number of heads paid through the door and that nineteen eighty seven called and they took their cocaine back.

And the promoter has to trust the agent is going to push the publicist to work his market in tandem and get some ink and send the posters and help pinpoint each market’s “superfan”.

And then, maybe prices can come down some for the general public. Because a promoter in a tertiary market doesn’t have to worry about whether or not the Phillies are going to make the playoffs because, on a door deal, everyone gets paid what they’re worth when everyone’s honest.

And then maybe more people will come out more frequently.

——————-
PS- I wrote this post while working the door for a double bill at The Abbey Bar. It’s a Sunday night. The Phillies are playing. So did the Steelers. Pretty sure the Eagles did too. There’s a new Boardwalk Empire on and it’s the season finale of Mad Men. We had ten people paid tonight. It was a seven dollar door. I won’t say what the guarantee was for the bands, but I can assure you it was more than seventy bucks.

Top Ten Potential Theme Songs for The City of Harrisburg

This post really shouldn’t require much of an explanation, but with the Sunday morning, eleventh-hour press conference held by Governor Rendell and “Mayor” Thompson about the state bailout (it IS a bailout)yesterday combined with the announcement of a HUGE lawsuit filed by TD Bank against the City and the half a million dollars we’re short on payroll and the looming clouds of bankruptcy gathering up the Susquehanna River, I thought it was a great time to suggest a new theme song for Our Fair City.

So here, in no particular order, are my Top Ten Potential Theme Songs for The City of Harrisburg. ©


Tennessee Ernie Williams- Sixteen Tons

You load sixteen tons, what do you get
Another day older and deeper in debt
Saint Peter don’t you call me ’cause I can’t go
I owe my soul to the company store

Merle Haggard- Working Man Blues
Sometimes I think about leaving, do a little bummin around
I wanna throw my bills out the window catch a train to another town
But I go back working I gotta buy my kids a brand new pair of shoes
Yeah drink a little beer in a tavern,
Cry a little bit of these working man blues

Desmond Dekker – The Israelites
Get up in the morning, slaving for bread, sir,
so that every mouth can be fed.
Poor me, the Israelite. Aah.


Cast of Annie – It’s A Hard Knock For Us

It’s the hard-knock life for us
It’s the hard-knock life for us
No one cares for you a smidge
When your in an orphanage
It’s the hard-knock life
It’s the hard-knock life
It’s the hard-knock life!

Elvis Presley – In The Ghetto
Then one night in desperation
a young man breaks away
He buys a gun, steals a car,
tries to run, but he don’t get far
And his mama cries

As a crowd gathers ’round an angry young man
face down on the street with a gun in his hand
In the ghetto

Steve Miller Band- Take The Money and Run
Billy mack is a detective down in texas
You know he knows just exactly what the facts is
He aint gonna let those two escape justice
He makes his livin off of the peoples taxes

Bobbie sue, whoa, whoa, she slipped away
Billy joe caught up to her the very next day
They got the money, hey
You know they got away
They headed down south and they’re still running today

http://www.youtube.com/watch?v=jZwLsvO6YTw

The Beatles- Taxman
(if you drive a car, car;) – I’ll tax the street;
(if you try to sit, sit;) – I’ll tax your seat;
(if you get too cold, cold;) – I’ll tax the heat;
(if you take a walk, walk;) – I’ll tax your feet.


Bruce Springsteen and The Sessions Band – Pay Me My Money Down

Oh pay me, oh pay me,
Pay me my money down,
Pay me or go to jail,
Pay me my money down

Rolling Stones – You Can’t Always Get What You Want –
And I went down to the demonstration
To get my fair share of abuse
Singing, “We’re gonna vent our frustration
If we don’t we’re gonna blow a 50-amp fuse”

P. Diddy, Puffy Puff Daddy – All About The Benjamins
You should do what we do, stack chips like *Hebrews*
Don’t let the melody intrigue you (uh-uh)
Cause I leave you, I’m only here
for that green paper which lead you

http://www.youtube.com/watch?v=TcckWzjJMIg

Another Fifteen Hundred Wasted

The most frustrating thing about the Thompson Administration is that the constituency of Harrisburg WANTS to succeed and the right people to get the various jobs done efficiently and honestly ARE available…but for reasons unbeknown to any of us…she simply doesn’t want to accept the help that is right in front of her face.

Case in point: this past Friday, August 20, the City Parks and Recreation department had a concert at the Levitt Pavilion. It was part of the “Levitt Live” summer series. The band was called “Trey Eley Experience”. A reliable source told me that the band’s payment was $1,000.00. The sound company gets paid around $500.00. Plus, there are additional costs involved like park staff, electricity and, of course, the band’s “rider”.

So the stage is set – a beautiful night this past Friday, giant open pavilion and a lawn that can seat thousands.

My source tells me there were fifteen people in attendance.

Fifteen.

But wait! It gets better. Around ten of the fifteen in attendance were Mayor Linda Thompson and her entourage (including her personal security detail).

SIDEBAR- In case you haven’t noticed, much space here hasn’t been given to the general disarray of the City of Harrisburg lately, rather, I’ve tried to focus on the areas that I’m 100% certain about. In this case, how to promote a concert.

And looking at the Levitt Live! website, I wasn’t surprised to see a number of cancellations. And the 2010 Summer Concert series still says “To Be Announced” (Today is August 23…when, exactly, will the Summer Concert Series be announced?)

It doesn’t take a Wall Street consultant or analyst to advise the city on how best to spend it’s entertainment and marketing budget. All it takes is a phone call.

Linda: stop wasting our money and start hiring the people who know what they’re doing.

Oh, and by the way- when is the Kipona Music schedule going to be announced?

J Roddy Walston And The Business Almost Killed Me

My friends are going to hate me in about thirty days.

Actually, if what I’m about to do has the same effect as what happened when I found The Hold Steady, my friends are going to hate J Roddy Walston and The Business in about a month.

You see, they’re not gonna hate J Roddy because they’re not a massively awesome rock and roll band, rather, they’re going to hate J Roddy Walston and The Business because the new record is all that I’m going to listen to and play for a long, long time once I get it this coming Tuesday, July 27. (It’s streaming on Spinner right now)

But that’s what we do, isn’t it? Don’t we scream it from the rooftops and evangelize on streetcorners and blog and tweet and facebook and hire skywriters to tell everyone about this awesome new band.

I thought that The Hold Steady ruined music for me. Simply because they set the bar SO FUCKING HIGH that most other new bands that I have heard since simply haven’t done much for me. That is, until J Roddy came along. We ran a short “Indie At The Abbey” series a couple of years ago that our friend Joe at Instrumental Analysis put together. J Roddy was on the wishlist for that but a date never materialized. That was when I got my first taste of the Rod. However, it wasn’t until over two years later seeing the boys open for The Hold Steady at The Recher Theater in Towson that I got the first addictive injection of this band.

It’s just straight up, down and dirty, high and mighty, wet and sloppy, fat and happy, dark and dirty, foot stompin, fist pumpin, head banging, beer swillin rock and roll music.

Oh, and Rod plays the piano – but it’s not really piano rock. Though the “dinka-dinka-dinka-dink-dink” of Used To Did is simply as catchy as any jingle I’ve ever heard and it’s a natural show-closer (and usually is).

Look, I can go on and on about this band. And I likely will over the coming months. But their new record comes out on Tuesday. It’s on Vagrant. They’re playing the Khyber in Philly on Tuesday night, Baltimore at the Ottobar on the 31st is the hometown CD Release show. And from there? Sky’s the limit.

I’ve found the new kings of bar rock – and they are J Roddy Walston and The Business.

Harrisburg’s Debt – In Plain English

If there’s one person who knows more about the state of Harrisburg’s finances, it’s attorney William Cluck. This post was written by him and posted on the Harrisburg Forum of the PennLive website.

Please do your fellow citizens a favor and share this link. It is, by far, the most in-depth explanation of the quagmire we’re in that you’re going to read anywhere.

It is time to go directly to the citizens of the city and region instead of the political officials providing sound bites for the media. My intent is to shed some light, provide some facts, and identify, from my perspective, the issues and players in our financial crisis.

1. The debt is actually around $283 million. There is also a risk the Authority could be liable for an additional $25 million if it loses the CIT litigation. The revenue from the incinerator, after operating expenses, has been unable to pay debt service. So, the city’s taxpayers, as primary guarantor of the debt, must come up with money to pay the debt service to the bondholders. Since the city is essentially broke, the county, as secondary guarantor for about half the debt, must come up with the funds. If the county defaults, then the bond insurer makes the payments to the bond and note holders. And any entity that makes a payment wants to be reimbursed eventually.

2. There are basic solutions to addressing that debt. Come up with $283 million and retire the debt or come up with $50 to $100 million to reduce the debt so it can be restructured and more manageable. Of course, how to do that is the big issue. Sale of the incinerator could bring in anywhere from $75 million to $180 million- if someone will purchase it. Leasing the parking garages apparently could net up to $100 million. There you go, done deal. Sell incinerator for $180 million and use parking lease proceeds of $100 million and we can go back to our lives. Easier said than done. A more realistic scenario is to pay down the debt by $50 million to $100 million and look to the state financing authority to provide leverage in refinancing or restructuring the outstanding amount. Neil Grover and City Controller have put forth their concepts for reducing the debt. The rest of this post will identify the parties and how I view their respective interests. My intent is to provide transparency without revealing the substance of draft documents being negotiated and better inform the taxpayers so they are able to participate in this discussion. Let’s look at the parties and their interests and issues:

3. Harrisburg Authority- does not have a quorum, can not conduct business. Wants to lead, but has little leverage. The authority staff is competent and the incinerator operator has the facility up and running rather smoothly. The issues are financial not operational. The Authority wants to pay contractors (unfairly being held hostage), fix turbine blade (to generate up to $1 million additional revenue in electric sales), repair steam line (possible $4 million in revenue), increase receipts and revenue (get higher paying waste from outside county), decrease operating expenses (find solution for ash disposal). A proposed amended budget that you haven’t seen reveals it may be able to start paying between $7 and $12 million annually in debt service. Current debt load too high- debt service is approx $22 million annually.

4. This year’s dilemna- $35 mil due in December because authority, city and county kicked the can down the road in 2007 by borrowing to pay debt service for 2007 and 2008. if that amount is refinanced, expect an additional $2 million in debt service.

5. This year’s budget for debt service includes amounts to reimburse the county, city, covanta and bond insurer. So far this year, on behalf of the authority, the city has paid $637,500, county has paid $1,126,254 and the insurer has paid $425,193. Payments from the debt service reserve fund this year total $5,074,733. All of those payments must be reimbursed or replenished. And, about $10 million in debt service is left to be paid before end of year (not including the $35 million notes).

6. City has limited resources to back up its guarantee. What should the city do? Are the recommendations from management consultants enough to deal with this financial crisis? Is there the political will and leadership to put the parking garages and other assets into play? Can the residents sustain a tax increase? Taxes did not increase in the city over the years because these financings typically would kick a few million to the city’s general fund so taxes would not go up.

7. County refuses to raise tipping fees to raise additional revenue for authority, won’t cooperate in enforcing flow control costing authority up to $600,000 annually in revenue, insists on additional $4.90/ton being added to tipping fee to go to county’s office of solid waste, requires its own engineer, financial consultant and attorneys to oversee authority (and get reimbursed by authority).

8. Covanta wants to be repaid on the $22 million it has put out to fix the Barlow mess. It has not been paid the last two quarterly installments of $637,000. So, Covanta will not release any more funds to pay contractors who did work (about $2.2 million).

9. AGM the bond insurer. Publicly has stated it will not reduce principal or interest on the debt. will not allow use of the $3.6 million from the Barlow settlement to be used to pay contractors or fix turbine blade until city comes up with a plan.

There are all kinds of legal issues involving the rights and remedies of each of these parties. The county has sued the city and authority for reimbursement of the money they have paid and wants the court to order the city to budget for the debt service and raise taxes or sell/lease assets. Covanta has put forth a list of its terms it wants in a forebearance agreement. AGM has put forth its terms for a forebearance agreement. The forebearance agreement initially was to buy time to enable the city to come up with a plan, but now the document is turning into the outline of a plan, which explains why it is taking so long to finalize. The authority can only sit on the sidelines until it gets a quorum.

So that is a status report on where things are as of now. Will the mayor and city council continue the stalemate over adding at least a third member to the board? Who will provide the necessary leadership to make the unpopular recommendations to do some combination of leasing or selling assets, raising taxes, raising tipping fees, asking the state to assist in restructuring the debt and/or allowing the filing of chapter 9, or even sell the water system or sewage treatment system?

At least you now know what we know. We promise to keep you informed and hopefully hold public forums on these issues.