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Pre-settlement Ticketing Fees
Pre-settlement Ticketing Fees
Understand the calculations for Pre-settlement ticketing fees and how to use them.
Written by Rosie Scanga
Updated over a week ago

Want to back out a VIP lift, charity dollars, or album bundles from your gross prior to settlement? How about additional facility fees? Our Pre-Settlement Fees feature is the answer!

Any per-ticket or percentage of Gross Pre-Settlement fees will be removed and factored in to the Adjusted Gross calculation. Percentage of Adjusted Gross pre-settlement fees can be used to remove additional fees or taxes from the show's Net Gross calculation.

# Types of Pre-settlement Ticketing Fees

• Flat per ticket - This amount will be removed from the ticket price for that tier. This type of Pre-settlement fee is typically used for VIP lifts, album bundles, or charity dollars.

• % of Gross (Divisor) - This fee will be based on the Total Gross on the show and is calculated as: Total Gross Ticket Revenue - (Total Gross Ticket Revenue/ (1+(Amount/100)). This type of fee is typically used for taxes that are calculated off of the show's Gross Ticket Revenue.

• % of Adjusted Gross (Divisor) - This fee will be based on the Total Adjusted Gross on the show and is calculated as: Total Adjusted Gross - (Total Adjusted Gross / (1+(Amount/100)). The Adjusted Gross in this scenario is after any other pre-settlement fee types or facility fees have been removed. This type of pre-settlement fee can be used for royalties or additional taxes.

• % Per Ticket - This fee type allows you to get more granular and calculate based on the Total Gross for a particular ticket tier as: Total Gross Ticket Revenue by tier - (Total Gross Ticket Revenue by tier/ (1+(Amount/100)).

# How Pre-settlement Fees are Calculated

## On Holds

On an event with a Hold status, the Pre-settlement fees Estimated column will factor in Est. Sales Tickets and the Potential column is based on Sellable tickets. In the example above, Estimated = 30*\$50=\$1,500 and Potential=50*\$50=\$2,500.

## On Confirmed Events

On a Confirmed event, the Estimated column will factor in Est. Sales Tickets and the Actual column will factor in Sold tickets. In the example above, Estimated = 30*\$50=\$1,500 and Actual=25*\$50=\$1,250.

## On Offers & Settlements

Offers will always show the Potential pre-settlement amounts based on total Sellable tickets. Settlements will always show the Actual pre-settlement amounts based on Sold tickets.

Note that if any percentage type Pre-settlement fees are used, the Per Ticket Fees column may contain more than 2 decimal places. The total Pre-settlement fee amount will be rounded to the nearest tenth decimal place but in order to accurately reflect the math at a per ticket level, additional decimal places are required.

## Other Resources

Check out the video below for more information on backing out VIP Lifts and adding them on to artist payouts.

If you have any questions, contact support@prism.fm!