How it works?

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The honesty and realistic approach of GGA staff supported me to refocus where needed and the team was passionate about our project. It really felt like a strong example of joint working as opposed to a contractual arrangement. (GGA is) an extremely professional and committed team, who were effective and focused with their time and resources and generous with their open approach and communication

Kevin Harrison, Sense Scotland

Jargon Buster

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Financial capacity

What does this mean?

The total amount of money that could be generated from a discrete performance or event.

Calculated by multiplying the total number of places available for occupation with the full face value of those places.

How did we get this definition?

One way of quantifying the capacity available to be used by an arts facility is to calculate the relevant financial capacity (see above) – i.e. how much money could be generate from an event, performance, workshop or series of events.

Related and similar definitions

If the event in question is one for which admission is charged at a single price level, then the financial capacity will equal:

The number of available places × the full price being charged

However, if the facility involved has a more complex pricing structure and uses ‘price breaks’ between different price areas, the financial capacity should be calculated as:

(No. of seats in area A × full price of an area A seat) +

(No. of seats in area B × full price of an area B seat) +

(No. of seats in area C × full price of an area C seat) ...

and so on.

When to use

Besides providing a means of setting financial targets, and a source of information for management performance reports, this calculation is also crucial in working out the average price paid.