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http://www.lawyers.com.au/legal-articles/2011/2/22/concert-promoter-vague-on-tour-profit/

Concert promoter vague on tour profit

The Age

Tuesday February 22, 2011

By KARL QUINN ENTERTAINMENT EDITOR

MORE than two years after the Backstreet Boys played in Australia, promoter Andrew McManus has no idea how much profit, if any, the tour made.Mr McManus made this surprising claim in documents lodged in the Supreme Court, where he is fighting a former employee's claim of more than $220,000 in unpaid royalties.Former manager of the Divinyls, Mr McManus has promoted the Australian tours of the Who, Guns 'n' Roses and Brian Wilson since 1995.Patrick John Prendergast, a general manager and tour manager of Mr McManus's former company, Andrew McManus Presents, has claimed in a statutory demand before the court that Mr McManus owes him $220,403 a sum that is, he says, the unpaid portion of a 10 per cent cut of the profits on tours Mr McManus's company ran between 2003 and 2010.Mr McManus has countered with a claim that Mr Prendergast owes him money.Over the seven years Mr Prendergast and Mr McManus worked together, Mr Prendergast was paid more than $916,000. But that, documents lodged by Mr McManus's lawyers insist, was too much."Many of the tours sustained losses and as such there was no entitlement to 'profits' earned in respect of those tours," the documents state.Mr McManus's lawyers argued that Mr Prendergast's calculations were predicated on projected rather than actual profit. In support of that, they cited the 2008 Backstreet Boys tour."The projected revenue for the Backstreet Boys tour was $1,697,043.94," the affidavit states. "The projected expenses for that tour were $1,540,430.37 [plus various other costs]."Despite it having occurred more than 2 years ago, Mr McManus said he was "not able to accurately confirm the amount of actual profit or loss from the Backstreet Boys Australian tour".A directions hearing is scheduled in the Supreme Court tomorrow.kquinn@theage.com.au

© 2011 The Age

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