Metallica's Manager: Indonesia is on My Watch List

After the 2008 global financial crisis, rock bands and their managers are paying closer attention to obscure concerns like currency rates and economic trends when inking contracts with foreign concert promoters.

Eight months before Metallica takes the stage in Germany, Mr. Burnstein decides whether the band should be paid in dollars, euros or a combination of the two. If exchange rates swing in a way that hurts Metallica's earnings, he buys derivative financial instruments to lock in a preferred rate.

Sometimes ticket prices are hiked to compensate for possible currency-related losses, though Mr. Burnstein shuns this strategy. “Nobody is looking to make a foreign-exchange trade to make money, but you don't want to be a loser,“ the scraggly bearded manager said.

The euro is what Mr. Burnstein fears the most. “Over the next few years, the dollar will be stronger and the euro weaker, and if that's the case, I want to take advantage of that by playing more of these European shows now, because they will be more profitable for us,“ he said.

Recently, David Rawlings, the guitarist who performs with American roots musician Gillian Welch-another client-called from Europe complaining about the still-strong euro. Unlike many top musicians, the duo drive from show to show, and found themselves shelling out four times as much on fuel, hotels and food as they do in America-something Mr. Burnstein jotted down.

“They really have a ground-level view of what things cost“ in Europe, he said. “That's another thing that confirms for me that, because of the exchange rates, prices in Europe are much higher, and this isn't a sustainable situation.“

By the same token, it makes sense for Metallica, whose costs are largely in dollars and not euros or pounds, to suck up those currencies next summer. “A weak dollar is the best thing for American rock 'n' roll,“ said Bill Zysblat, partner at RZO Productions, which has handled tours for the Rolling Stones and the Police.

Sometimes Mr. Burnstein's calculations are in harmony with his client's wishes. In September, the Chili Peppers trekked through South America, a popular destination for entertainers thanks in part to soaring currencies that make it easier for local promoters to pay U.S. acts especially well. Singer Anthony Kiedis and bassist Flea, surfing enthusiasts, drove an hour out of Rio de Janeiro, to find the best place to catch Brazilian waves.

Other times, things get hairy. Flea wants to play Africa, but the puckish Mr. Burnstein has pushed back, saying the continent's infrastructure and profit potential-excluding South Africa-isn't there yet. Band members sometimes disagree with Mr. Burnstein over where to play. “One guy will go, we played there in 2000, 2003 and 2007, I don't think we should go back.“

Mr. Burnstein is a stickler for details. For one of his bands, a musician's divorce and child-custody issues necessitated creative tour planning so the band member could repeatedly return home. “You give everybody a calendar and say, here's what your next year will look like,“ the 63-year-old former manager of Def Leppard and the Scorpions said.

“We have all the key events in their children's lives, first day of school, Halloween trick-or-treating, parent- teacher conferences, school vacations, graduation day,“ he said. “It's tricky,“ he added.

With clouds over Europe darkening, managers like Mr. Burnstein are increasingly turning their long-term focus to places with stronger currencies, like South America, Southeast Asia and Australia. When Metallica ended their “World Magnetic“ tour in Australia a year ago, they played not just Sydney and Melbourne but also harder-to-get-to Perth.

“We're a U.S. export the same way Coca-Cola is,“ he said. “We look for the best markets to go to.“ “Right now Indonesia is on my watch list,“ he smiled.