A System Under Fire
The UK’s live music ecosystem is facing a quiet but potentially devastating crisis. At the heart of it lies a question that refuses to go away: where is the money actually going?
With more than £666,000 in identified discrepancies and mounting complaints from venue operators and artists, the Music Venue Trust (MVT) has launched a direct challenge to PRS for Music. Their campaign, Set The Record Straight: Fair Licensing Fees, aims to expose what they describe as systemic flaws in how licensing fees are calculated, billed, and distributed.
What’s emerging is a deeper tension between the theory of collective rights management and the reality experienced on the ground.
The £666,000 Question: Discrepancies Across the UK
MVT’s findings are not minor accounting quirks. They point to widespread inconsistencies across England, Scotland, and Wales:
- £56,000 in the North West
- Over £20,000 in the South West
- Nearly £50,000 in London
- More than £80,000 in Wales
- Over £75,000 in Scotland
In one extreme case, a single venue was hit with a £90,000 error, an amount that could permanently shut down a grassroots space.
According to MVT, these discrepancies stem from a reliance on estimated data rather than actual attendance, with fees often calculated using maximum theoretical capacity instead of real ticket sales.
As Gareth Kelly puts it:
“The issue is not whether fees should be paid… The issue is whether those fees are being calculated accurately, applied fairly and charged to the right party.”
Inside the Billing Chaos: A Venue’s Story
For operators like Dylan Clarke, the problem is not abstract. It’s existential.
Clarke, who books shows at The Brook, describes a decade-long struggle with PRS that included around 1,000 emails, multiple account managers, and long periods of silence followed by sudden, overwhelming invoices.
“We didn’t hear anything for months… then out of nowhere we suddenly got an absolutely massive bill.”
At one point, the dispute escalated into a court case, something the venue could barely afford. Only intervention from MVT led to a structured repayment plan and a reduced bill.
This kind of volatility, Clarke argues, reflects a deeper issue:
“There’s a lack of transparency and business is really tough.”
The “Black Hole” of Unclaimed Royalties
Perhaps the most troubling aspect of the dispute is what campaigners call the “black hole” of unclaimed money.
PRS maintains that when royalties cannot be matched to a specific artist or work, often due to missing setlists or incomplete data, they are held for up to three years while claims are processed.
But critics say that explanation doesn’t go far enough.
Clarke estimates that his venue alone has generated £14,000 in unclaimed royalties between 2022 and 2025:
“That’s £500–600 from one show just sat there… it should be in the artist’s hands.”
Mark Davyd has also raised concerns, noting that without proper event records, collected money can end up in an “undifferentiated pool” with no clear link to performers or songwriters.
The implications are serious. If one mid-sized venue can accumulate that level of unclaimed funds, the national figure could run into millions.
Artists Speak Out: “Behind the Curve”
The frustration is not limited to venues. Artists themselves are increasingly vocal.
Sam Duckworth, who performs as Get Cape Wear Cape Fly, describes repeated issues with misallocated royalties and delayed payments:
“I’ve had tracks paid to publishers I haven’t been signed to… shows labeled as ‘unclaimed’ in the middle of tours where everything was correctly registered.”
He goes further, questioning whether PRS is keeping pace with modern technology:
“In theory, PRS is one of the great parts of the British music industry. In practice, it is behind the curve.”
Duckworth’s critique cuts to the core of the debate: a system designed to protect artists may now be failing them.
PRS Responds: A Chain Only as Strong as Its Data
PRS defends its model by pointing to the complexity of royalty distribution.
A spokesperson told NME that payments depend on a chain of inputs, venue licensing, event data, and accurate setlists and that estimations are only used when data is missing.
They also highlight ongoing investments in technology, including AI tools to identify setlists and improve accuracy.
“The most effective way to improve outcomes… is through shared responsibility across the live music ecosystem.”
This response shifts part of the burden back onto venues and artists, suggesting that incomplete data not systemic flaws is the primary issue.
A Sector Already on the Brink
The timing of this dispute could hardly be worse.
Recent figures paint a bleak picture:
- 30 grassroots venues closed permanently between July 2024 and July 2025
- Over 50% of remaining venues made no profit last year
- More than 6,000 jobs were lost
- 175 towns and cities are now considered “gig deserts”
The UK’s live music infrastructure, long seen as a global talent pipeline is under severe strain.
Against this backdrop, even relatively small financial inefficiencies can have outsized consequences.
The Bigger Picture: Monopoly, Accountability, and Reform
Some critics are beginning to question PRS’s structural position within the industry.
Duckworth describes it as a “de facto monopoly,” arguing that artists should have the option to opt out if the system fails to deliver.
Meanwhile, MVT is calling for:
- Greater transparency in fee calculations
- Clearer accountability between venues and promoters
- Reform of tariff structures
- Better tracking and distribution of royalties
There is also growing pressure on major industry players like Live Nation to introduce a £1 ticket levy on large-scale shows to support grassroots venues.
What Happens Next?
At its core, this dispute is about trust.
Trust that the money collected in the name of artists actually reaches them.
Trust that venues are being charged fairly.
Trust that the system is fit for the modern music economy.
Right now, that trust is clearly under strain.
MVT’s campaign is unlikely to be the final word. If anything, it marks the beginning of a broader reckoning over how music royalties are managed in the digital age.
Because here’s the uncomfortable reality: if even a fraction of the missing money is real, then the industry isn’t just inefficient, it’s leaking value at a time it can least afford it.
And if that doesn’t get fixed soon, the cost won’t just be financial. It will be cultural.