New report reveals grassroots venues make an average annual profit of £1,297
According to a new report by the Music Venues Trust (MVT), the average grassroot music venue in the United Kingdom only makes an annual profit of £1,297.
The report also states grassroots venues helped boost the national economy by £500m. However, the average profit margin of each of these venues was only 0.2%. Therefore, if costs continue to surge, it’s difficult to foresee how these venues will continue to survive when the profit margin remains so tight.
Additionally, not only will rising costs threaten their expenditure, but, the cost of living crisis may also deter fans from attending as many concerts, and putting money behind the bar. The results of the report make for worrying reading, and if we lose grassroots music venues, it will cause a ripple effect across the wider music industry.
According to the BBC, Music Venues Trust chief executive Mark Davyd said Many owners find themselves in a “precarious financial position” and added that “the current economics no longer stack up”. To help venues, the charity wants VAT on ticket sales to be reduced from 20% to 5% or completely removed.
Furthermore, the charity also wants help from arena-sized venues and asks for them to invest a percentage of their ticket revenues into the grassroots system to help build the next generation of arena-conquering artists. “We cannot go on building more and more arenas with no plan of how to fill the stages they create in five, 10 or 20 years’ time,” he said.
Meanwhile, Ricky Bates, who manages Southampton’s iconic Joiners venue, told the BBC: “Nobody starts a band and walks out on stage at the Hammersmith Apollo. It takes years in some cases,” he said. “Biffy Clyro, for example, toured for eight or 10 years before they signed to a major label and now they’re a stadium band. Even Ed Sheeran did it. He started a tour at The Joiners in May 2011, and within two years, he was a headliner.”
Last year, Paul Sapel, who manages The Adelphi in Hull, told Far Out of his precarious position: “Most grassroots venues are on the bones of their arse all the time anyway; I’m on less wages now than I was 20 years ago, I put in more hours than I get paid for, but it’s a labour of love, and across venues, you’ve got highly skilled people who can react to events because that’s what we’ve always done.”
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