Australians will be playing their part in possibly inducting Taylor Swift into the billionaires club, with some industry insiders estimating the pop star could pocket as much as A$35m from the Australian leg of her Eras tour alone.
Estimates in the US put Swift’s earnings at an average of US$13.6m (A$20.5m) a show, based on an average ticket price of US$215, meaning she would gross more than US$700m from the 52 dates in the North American leg. That is without taking into account the more than 50 concerts she is performing around the world.
Some observers have estimated that a huge star like Swift could pocket about 40-60% of the profits a show, and that her North American leg generated more than US$2m in merchandise sales a concert.
An industry insider estimates that Swift will earn about $5m for each of her seven concerts in Australia, after her transport, accommodation, production and publicity costs, venue hire and management fees have been taken care of, and the ticketing partners have collected their share.
The insider said $5m a show was a reasonable ballpark figure, based on the average cost of a ticket, multiplied by the two venues’ capacity over seven shows, and less all the associated costs, which the industry keeps close to its chest on the grounds of commercial in confidence.
A huge rise in the costs of touring live music could however eat into Swift’s potential $35m Australian payday. Evelyn Richardson, the chief executive of Live Music Australia, said the costs of putting a major show on the road have risen by 30% since the country emerged from pandemic lockdowns.
“This is what the promoters are telling us, that there are major supply chain issues and significant increases in freight costs,” she said. “We’ve also got a rise in inflation, and we know ticket sales to live concerts are still down about 35% on pre-Covid figures, so rising costs and less demand has created a perfect storm.
“But a Taylor Swift concert is obviously in a different category, where demand is clearly outstripping supply when it comes to buying tickets.”
General sales for Swift’s four concerts at Sydney’s Accor Stadium and three concerts at Melbourne Cricket Ground sold out on Friday afternoon. The stadium capacity at the MCG will be more than 100,000, while Accor has a capacity of 83,500.
When asked to comment on the costs and logistics of the Swift Australian tour, a spokesperson from Frontier said “no one is permitted from Frontier, or venues, ticketing agencies, partners, [to talk] on behalf of the tour”.
The Sydney and Melbourne-only tour has resulted in Virgin Australia reporting a 656% increase in bookings from Brisbane, Adelaide and Perth to the cities around the seven concert dates: 16-18 February in Melbourne at the MCG and 23-26 February in Sydney at the Accor Stadium.
By then, Swift will be nearing a year on the road, with the Eras tour having begun in the US in March.
Forbes, which put Swift’s net worth at US$570m in 2022, estimates that once she has paid her costs, the US leg of the tour will probably lift her net worth to $780m, including real estate and other assets. In May, CBS estimated the tour could lift her net worth by US$500m – and if Forbes’ estimates are correct, would make her a billionaire. The Wall Street Journal has predicted it could be the first global concert tour to generate more than US$1bn, breaking the record held by Elton John.
