Cost of a top-end show
COVID: HIGH-END ACTS ONLY POSSIBLE WHEN PANDEMIC RULES GO
A leading SA concert promoter does the maths for all that is involved.
Getting the world’s most popular stars to perform live in South Africa takes a little more organising and money than booking them a flight and putting them up at a five-star game lodge. The Citizen spoke to a producer to get the inside track on producing international events.
The rock ’n roll concert side of the entertainment industry is still fighting to keep their heads above water. It has been a really difficult two years for them as all events were banned during the Covid lockdown.
While the National State of Disaster did come to an end at midnight, 5 April, a number of restrictions remained in place for 30 days. This included the wearing of masks and gatherings limited to 50% of a venue’s capacity, provided attendees can show proof of vaccination or a negative Covid test.
The public comment period for The National Health Act, which was supposed to replace the Covid lockdown regulations has been extended to 5 August, after which the country should have more clarity regarding the limitations for gatherings and the wearing of masks.
But this doesn’t bring much reprieve for the workforce responsible for putting together some of the most magical international gigs in South Africa, including the unforgettable 2011 concert when Irish rockers U2 performed their 360° Tour at Cape Town Stadium and FNB stadium in Johannesburg – brought to SA by Big Concerts.
Speaking to The Citizen, Sven Hansen, production manager/ producer and owner and director of 4 plus 3 Productions, said it’s next to impossible for smaller promoters to bring international acts like U2 and Eminem to South Africa with the current venue limitations in place.
“You have to sell 80% of your tickets to cover your production costs, your venue hire, your technical, hotels, flights, artist fees, tax on your performance fee that goes to Sars,” he explains.
According to Hansen, who has been producing concerts for about 18 years now, and who has worked alongside some of the most respected people in the industry, including U2’s site manager Jake Berry, says getting a highend band to perform at a Cape Town and Johannesburg stadium with all the performance fees, production costs and flights will cost around R70-R80 million to produce two shows.
He stresses, though, that you need to sell about 80% plus of event tickets before you even start making a profit, which means with venues only allowed to operate at 50% capacity, it is not financially viable – unless people are prepared to pay R10 000 for a golden circle ticket instead of R1 500.
“Pre-lockdown tickets sold for around R450 in the cheap seats, but when you only have 50% capacity these tickets prices could easily shoot up to R1 000 for seated tickets and start at R5 000 for a golden ticket.
Potential cost of an international act at a stadium:
Artists fees for high-end performers like Justin Bieber are over $1 million per show – that would translate into R42 million for two shows.
You also need to cover the artists’ and their entourages visa applications, security, domestic flights, hotels, meals, drinks, entertainment and so forth.
Venue hire adds about another R1.6 million to your budget, and pitch protection is another R480 000 per venue.
The security bill for a stadium is around R800 000-R900 000.
In most cases, you also need to fly the artists to South Africa – often paying for either their International Business Class flights or chartering a private jet. Business class tickets from the US to South Africa cost around R160 000 per flight.
For a large production, for the stage and lights and all other equipment, you are looking at another R5-R6 million.
Hansen says while Covid wasn’t a death sentence, the entertainment industry will suffer until crowds are allowed to descend in their numbers again.