Buyout

What Is a Buyout?

A buyout is a lump sum of money given to an artist by the venue for food, accommodation or other items from their rider. A buyout can eliminate headaches for the venue and often be more lucrative for the bands.

Imagine you have 2-3 touring bands coming in 3 nights per week and each one has its own rider with its own set of demands.

It’s much easier to give them money for food and hotels and call it a day than to providing it to them. Not to mention dealing with unhappy band members when they did not get what they were promised in their performance contract.

When Does a Buyout Makes Sense?

A buyout works well for venues that host many bands each week. Coordinating different requests for every band gets complicated. A lump sum solves that problem.

A buyout also works for bands who are good at budgeting. If a band spends less on food and hotels than the buyout amount, they come out ahead.

A buyout might not be the best choice when the venue and band want to build a relationship. Having catering at the venue creates goodwill. Some bands also prefer not to deal with the extra work of booking their own accommodations.