Open Air Business June/July 2018

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Sandown Park 26 – 27 September <strong>2018</strong> Surrey TURN UP, JOIN IN AND FESTOUT! HUNDREDS OF INNOVATIONS FOR YOUR NEXT EVENT REGISTER NOW @festoutshow festivalandoutdoorshow.co.uk
GETTY IMAGES Managing Cancellation Philip Day, NOEA council member and partner at Laceys Solicitors, looks into how the cancellation of an event affects stakeholders and why well considered contracts are so important THE RECENT DECISION to cancel the second day of the Mutiny Festival in Portsmouth has concentrated the minds of many as to how they would react and cope with such an event. Over the last couple of years, I have unfortunately been involved with a number of outdoor music events that had to be cancelled at short notice. In each of the cases that I dealt with, the problem was directly associated with licensing issues, largely because the organisers had left it far too late to make the necessary applications and to prepare all the documentation that is essential for any event of a significant size. In these cases, the organisers failed to secure an appropriate Premises Licence and had no choice but to call the event off. In other cases, cancellation resulted from the insolvency of the promoter. There are of course occasions when cancellation is forced upon the organiser for reasons entirely beyond their control, most frequently adverse weather conditions or a sudden illness (or even the death) of a star performer. In some respects, the reason for a cancellation is irrelevant – people will feel let down and disappointed and many will end up out of pocket regardless, but in terms of managing (and, more importantly, planning) for what some regard as unthinkable (and chose to ignore), the “why did that happen?” is crucial. Probably the best example of that is cancellation due to adverse weather for the simple reason that it is possible to insure against such an eventuality. The same applies to cancellation due to unavailability of the star performer at a planned concert. However, many promoters consider that the cost of insurance is prohibitive and don’t bother, and even those who do bother will find it impossible to obtain cover that compensates all those affected for every penny that they have lost. In financial terms, one needs to consider the position of the following categories of stakeholder: › Ticket holders › Performers › Suppliers › Land owners › Concession holders › Promoters and investors. WWW.OPENAIRBUSINESS.COM 57
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Page 5 and 6: World’s most expensive festival t
Page 7 and 8: The latest news from the world of o
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Open Air Business June/July 2018

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