The Economics Of A Las Vegas Residency

January 9, 2018 in Daily Bulletin

A residency in Las Vegas is an increasingly lucrative option for well known artists wrote Shirley Halperin:

  • Lady Gaga reportedly signed a two year deal with the MGM Park Theater where she’s guaranteed more than a million dollars per show, for at least 74 shows.
  • Stars also typically get a 50/50 split on merchandise earnings.
  • On the face of it the paycheck doesn’t quite make sense. At best a show will bring in half a million dollars.
  • And costs are only increasing – especially the strengthened security put in place after the Harvest music festival shooting.
  • But MGM likely factored in the boost to the casino’s bars and restaurants as a result of Lady Gaga’s performance when determining how much to pay her.
  • Several stars including Bruno Mars, Pitbull, Cher, Jennifer Lopez, and Britney Spears have taken up similar Las Vegas residencies. For them it’s good money without the stress of travelling.
  • The most lucrative performers though are dance DJs like Calvin Harris and David Guetta. They’re paid $400,000 a night and all they need is a laptop –none of the expenses of a song and dance show.

Read more on Variety.