Summary: Fame Kills Tour
1.) After Kanye backed out of the Fame Kills tour, the three touring options were to go on with the arena tour as a solo act, go on tour but in smaller venues than originally, or just straight up cancel the tour. Going on the arena tours would cost a lot more for advertising and stage equipment but has the greatest margin for profits. The smaller venue tour would cost less that it would to set up an arena tour but ticket prices would be lower and fewer tickets would be made available. The third option of canceling the tour is by far the most straight forward and easy to pursue however would result in a financial loss from prepaid expenditures I were Troy Carter, the touring option that I would choose would have to be stick with the arena tour. All three options had their pros and cons, but from a financial and business point of view, the arena tours would allow more of her fans to come out and see her which means good publicity, tickets are more expensive, and profits would be much higher despite a higher investment on stage setup equipment and the nature of a higher risk.
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Assuming all arenas booked sat 20,000 people and all tickets sold at the constant rate of $150 she would rake in $3 million a show and after all 25 concerts, she would have made $75 million minus the $12 million for gear and other costs generating a grand total of $63 million. At the smaller venues, she would be able to sell roughly 8,000 tickets at $100 each generating $800,000. After all shows had been performed and costs accounted for, Gaga could walk away with $14 million. Canceling the tour however would require no additional equipment costs, but the money she had already spent would not be returned and she would be $4 million in the
2.) …show more content…
Assuming all arenas booked sat 20,000 people and all tickets sold at the constant rate of $150 she would rake in $3 million a show and after all 25 concerts, she would have made $75 million minus the $12 million for gear and other costs generating a grand total of $63 million. At the smaller venues, she would be able to sell roughly 8,000 tickets at $100 each generating $800,000. After all shows had been performed and costs accounted for, Gaga could walk away with $14 million. Canceling the tour however would require no additional equipment costs, but the money she had already spent would not be returned and she would be $4 million in the