Managers great rock bands are carefully protected from euro depreciation as an exporter. His "flock" concerts in the euro area in the first half of next year, buying derivatives and demand money in several currencies.
As the global economy, the music industry through difficult times: lower sales, ticket price increases and the euro during thinning and more piles of accounts musicians. Therefore, much of the famous troops managers look more something like an investor in the euro and dollar fluctuations. Concert planning process depends more than ever. This is why many managers prefer to hold concerts in countries with strong currencies, such as South America, Asia or South-Eastern Australia. "We are a U.S. exporter as Coca-Cola. We look at the best markets. Now on my list of priorities is Indonesia, "he told The Wall Street Journal American manager.



One of the troops who protect the most adverse fluctuations of the single currency is Metallica. Their manager, Cliff Burnstein, will decide in which currency or currencies will be paid to the band, eight months before the band to go on stage in Germany. Precautions and do not stop there. If the exchange rate seriously affect income Metallica, Burnstein buy derivatives. Also, often, the show ticket price shall be such as to cover possible losses caused by exchange rate.



"Nobody thinks to fortune speculating on the course, but do not want to lose," he told The Wall Street Journal, Cliff Burnstein. He fears the euro than evolution. "In coming years, the dollar will be stronger and the weaker euro. Or, to take advantage of this, you need to participate in several concerts in Europe now. It is more profitable way, "explains manager Mettalica.



Moreover, Burnstein has already decided to accelerate plans for touring organization, not so attracted to the financial crisis in Europe in the race. He believes that the euro will collapse which will mean that Metallica concert organizers of the 17 states, where the band was to sing, could delay payment. Consequently, instead of playing in Europe in 2013, as originally planned, will do so next year. Metallica will play the "European Summer Vacation," including festivals "Rock Im Park" and "Rock Am Ring" in Germany. "I'm not an economist, but I have a degree that helps me. Please ask, and when the best time to do something, "he told The Wall Street Journal, Cliff Burnstein.



Burnstein implement the same method of protection against the exchange rate and the Red Hot Chili Peppers, which manages them. The band has already made plans to sing in Latin America this fall, their first concert in that region in the last four years. This despite the insistence of U.S. fans. Red Hot Chili Peppers won about 75% of concert revenues from outside the country of origin.



Sometimes the manager and Red Hor Chili Peppers Metallica takes into account the preferences of its customers. In September, for example, Red Hot Chili Peppers have traveled throughout South America in order to rebalance income. This while the organizers of American artists there pay them extremely well. Instead, there were occasions when the manager did not agree with some concerts on the band and wanted them. If a tournament is in Africa where Burnstein said no, arguing that the continent's infrastructure is poor and the chance to earn a good profit are low.



Burnstein tells also about the rising costs that artists have to bear in Europe. "Gillian Welch with guitarist working in Europe recently called me to complain about how strong euro remains at present," the manager says. The two artists have traveled to many places to hold concerts and were forced to spend four times as much fuel, accommodation and food than is consumed in America. "This is another element that I acknowledge that because of the exchange rate, prices in Europe are much higher," says the manager.



Concerns over possible financial problems are felt by managers in the UK. Anthony Addis, manager of the British band Muse, said that U.S. troops outside of work, but with numerous concerts in the euro area, have serious problems due to exchange rate fluctuation. Therefore, they refuse to be paid in dollars.