The Hidden Financial Perks of Certain Broadway Tours: A Look at Overages
Kevin McNaughton Shares His Knowledge on Financial Opportunities in SET Tours
Are you familiar with the concept of overages? In my chat with Kevin McNaughton, a guest on the Broadway Drumming 101 podcast, we talked about overages and how they impact musicians' earnings when on Short Engagement Tours (SET) for American Federation of Musicians (AFM) Broadway shows.
Overages happen when a production earns more revenue than the budget initially projects. This includes additional payments for the musicians, cast, and touring crew contributing to the show. The AFM negotiates these overages, ensuring that musicians benefit from the financial success of the productions they work on. The SET contracts outline how overages are calculated, usually as a percentage of the revenue.
Musicians need to understand how overages work as it can directly affect their total compensation. If the show performs well, it can significantly enhance their earnings. Kevin McNaughton is an expert in this area, among others, and he highlights the importance of being well-informed about the financial aspects of touring. Knowledge empowers musicians to advocate for fair contracts and fosters a sense of equity and collaboration between them and the production companies.
My personal experience with overages was quite an eye-opener for me when I filled in for the drummer in "Hadestown." After my first week, I received an overage payment that was more than the standard weekly wage, which made me realize how significant overages can be. I have written a detailed account of my journey in this post on Broadway Drumming 101, which you can read HERE:
It's essential to understand the business side of the music industry to be financially prepared for touring and better understand the broader industry practices that affect musicians' livelihoods.
If you want to learn more, subscribing to the Broadway Drumming 101 podcast and visiting this site are great ways to gain knowledge and insights from experienced professionals like Kevin McNaughton. Stay tuned for more!