T.I.’s incarceration is believed to potentially have a rather significant affect on the economy thanks to jobs and other opportunities being lost due to the forced cancellation of his tour.
Hip Hop Wired posted an editorial from Jean-Luc Tahou that breaks down the financial damage done by T.I.’s poor judgment.
The planned T.I. tour was allegedly sponsored by AXE for a total of 50 dates. A tour of this caliber requires tremendous logistical and financial resources that may have already been contractually engaged at the time of T.I’s arrest.
From a direct standpoint, the 50-60 people employed by the tour just lost potential income: tour managers, staff members, crew members, etc. all missed out as they cannot easily jump onto another project. At an average of $2,000 a week each, weekly payroll would stand at $100,000; therefore we are talking about $1.2 million for a 12 weeks tour.
In terms of production, vendors providing services such as light, sound, staging, video screens and catering lost contracts worth tens if not hundreds of thousands. For a small business, these contracts constitute a matter or survival or even the difference between profitability and loss for that year. A ballpark production figure for such a tour could easily amount to $2 million.
Creative consultants and design services providers may or may not have to be scrapped but the cancellation costs barely replace the income they were anticipating. Furthermore, transportation via airfare and/or tour buses would have been needed as well for the tour.
At about $7,000 a week, a 12 week tour comprised of 7 buses would cost $588,000. If we factor in 7 equipment trucks as well at a rate of $10,000 a week, another $840,000 needs to be added to the list of lost opportunities.