Where Does the Money from a Broadway Ticket Go?

This blog was originally published on my LinkedIn.

Broadway ticket prices have always sparked debate, especially when the average ticket in 2023 is going for around $130. Many assume that higher ticket prices are simply a way for producers to line their pockets—but the reality is much more nuanced.

After reviewing financial statements from over a dozen post-pandemic Broadway productions, I broke down where every dollar of an average $130 ticket usually goes each week—assuming the show is just breaking even weekly and not yet turning a profit.

Theater-Related Expenses: $43

A significant portion of the ticket revenue goes toward theater-related expenses, which are influenced by agreements established by The Broadway League. These costs are passed along to producers to cover on a weekly basis, so producers usually do not directly set these rates.

Theater Rent: $7

Rent is structured as a minimum weekly fee or a percentage of gross revenue. This means theater owners benefit directly from higher-grossing weeks, capturing a steady share regardless of how the show performs.

House Crew & Theater Staff Salaries: $23

This category covers salaries for stagehands, ushers, box office personnel, and other theater staff. These expenses are largely non-negotiable, dictated by industry-wide agreements.

Payroll Taxes and Benefits: $12

This includes payroll taxes and benefits such as health insurance and retirement contributions for all theater-related staff.

Production-Related Expenses: $87

The lion’s share of the ticket price goes directly into production expenses that keep the show running week after week.

Salaries: $36

Wages for actors, stage managers, and other production staff are a major expense. While producers can choose to pay more for key talent, the minimum salaries are set by union agreements, making a large portion of these costs relatively fixed.

Advertising and Publicity: $15

Weekly promotional efforts to keep the show visible and attract audiences are vital to maintaining ticket sales. This budget covers everything from traditional media (television, print) to digital campaigns, as well as other promotional activities like Tony Award campaigns.

Royalties: $12

Royalties are paid to the creatives behind the show (writers, directors, and designers) and producers based on weekly revenue.

General and Administrative: $12

This category includes a wide range of costs, from legal and accounting fees to office management and insurance premiums. It also covers union assessments.

Other Production Expenses: $12

This bucket includes equipment rentals, fixed fees paid to certain creative departments, and other miscellaneous costs that can vary from show to show.

Putting It All Together

This analysis assumes that the entire $130 ticket price goes towards covering weekly expenses, with no additional revenue being allocated to recoup the initial production costs. In other words, this is a breakeven scenario where every dollar is reinvested to keep the show running each week.

Understanding this breakdown helps clarify why Broadway ticket prices are high and how weekly revenue is distributed among the various stakeholders. Many of these expenses are passed onto producers with little room for negotiation, which means they have to find ways to optimize and lower costs elsewhere—a challenging task in an industry with such high overhead.

Moving forward, it’s worth considering the entire pie—beyond just the production’s $87 share—to make Broadway more sustainable and accessible. This means reevaluating how much revenue goes towards essential operational costs and exploring ways to balance profitability with affordability.