Thread by @littleredfoxcos

Ok guys, let’s talk conventions, contracts, and COVID, because I’m seeing a lot of events cancel and reschedule, and a lot of people angry that more events aren’t cancelling further out.

Buckle in. This is going to be a semi boring ride into the wonderful world of legalese.

I’ve been a show runner for something like 5 years. I’ve also been a guest dozens of times. Between the two roles, I have seen all manner of contracts between the convention and venue, convention and guest, convention and vendor, etc. You name it, I’ve seen it.

So what I see happening here is conventions are waiting until the choice is taken from them before they cancel. It may seem irresponsible to you, but it is honestly the safest move they can make if you want to see conventions coming back in 2021.

Here’s the deal. All of those contracts I talked about before have penalties associated with them if the convention backs out. They will lose money. And conventions make money on ticket sales and vendor booth rentals. No event, no cash flow, no way to recoup those losses.

No way to recoup the loss means the convention has less money going into the next show. They don’t have the capital they need to do what they would usually do. If you’re lucky, that means a smaller event with fewer big fancy guests and whatnot.

If you are not lucky, the convention is left with too little to hold the event at all. Smaller conventions are definitely at a high risk here. So COVID could kill the con industry, or at the very least cripple it to where only the big shows are left, but on a smaller scale.

BUT! We have a saving throw here! All of those contracts we talked about earlier? They all include a Force Majeure Clause. ALL of them. That’s super duper important right now. This is how the conventions will be able to do what needs to be done, and still be there next year.

A Force Majeure Clause is a contract provision that excuses a party’s performance of its obligations under the contract when certain circumstances arise beyond the party’s control making performance inadvisable, commercially impracticable, illegal, or impossible.

In simpler terms, the force majeure clause allows the parties to back out of the contract if, say, something wild and unexpected like a global pandemic strikes, and the government says we have to social distance and whatnot.

Here’s where it gets sticky. It is easier to trigger that clause if the city, state, or federal government forces your hand, or if the venue itself forces it. If you are the one who has spent the money (in this case the con), it’s a lot harder to say “hey I changed my mind...”

And just expect them to hand your money back. Venues do not like to give money back, if they already have it in hand. And we’re not talking a tiny $100 deposit. The venue is one of the biggest expenses for a show, by a long shot. We’re talking half or more, a lot of the time.

So these cons that say they’re still planning on being there? I assure you, the convention heads are praying for that force majeure clause to trigger. Nobody wants to do a show right now. The crowds won’t support it. The money isn’t there for them.

We are all reading the writing on the wall. 2020 is a wash, and we all know it. But in order to get out of this thing relatively unscathed, we need the local governments to make that call. And for those conventions further out? The state governments aren’t there yet.

Look, the state governments around me are all talking about opening up. They aren’t entertaining thoughts of September now. They want to see us open in May. We all know that’s not advisable, but whatever, some of these idiots didn’t even realize the virus was transmissible...

If you were asymptomatic, and the damn CDC is in their state. Not naming names here but...

*glares at Georgia*

Anywho, idiots like that are making our job a lot harder. We want to do a successful show, ok? We do. This is a money thing. I freely admit that. BUT.

But like I said before, even if we have everything opened up, we know a show in 2020 is going to be a shell of what it once was. People don’t have the money, for one thing. There are so many people who aren’t working. It’s just impractical to think they could afford it.

But even if they could? They’re scared. And they are right to be scared. Can you imagine con crud, corona style?? That’s a worst case scenario kind of thing, for sure. Nobody wants that. The people who work these things don’t want to bring home the worst con crud ever.

But they’re stuck. Right now they’re stuck. That clause has to trigger, or everything they’ve done up until this point has been wasted. They’re just trying to make it to 2021, like every other business out there.

“Yeah but they’re wasting resources/people’s time/ etc”

Not as much as you would think. Guests, vendors, and all of the pieces that make a convention a convention know what’s going on. We’ve been dealing with this for coming up on two months now. This is our new normal.

We are hoping for the best, but planning for the worst. People aren’t exchanging money, because we know it’s likely to have to be given back, and that’s harder on our staff, and on the systems that conventions use to track and organize the business side of things.

And the attendees? I get it. I do. It’s frustrating. But do you want to have conventions in 2021? Then direct your ire at the venue, at the city, and at the state, who can all make the call to trigger that clause that allows the convention out of their contract.

I lost my convention this year. I’ve (likely) lost a money making guest spot. And I’ve lost all of the conventions I wanted to attend. Y’all, I hit the trifecta. So believe me, whatever side you’re on, I’m there with you.

But I don’t see any reason to be frustrated with the conventions who can’t cancel yet, because I see what they’re doing. They’re just trying to make it to next year. And OMG do I want to have a crazy 2021 con season! I miss that energy. I miss my friends.

Just, I guess, all I’m asking for is patience. If you want to be angry, I get it, but maybe spread some of that anger around to those government entities that need to be making better calls. Be angry at the cons too if you have to, that’s fine. A lot of people are.

People get mad when they see cons making decisions based on profitability and making money. But guys? That’s literally the only reason these things exist. Even the charity events are there to make money. That’s how they keep running. You can’t fund the next con on good vibes.

Anyway, that’s enough boring lecture for today. Key points:

Convention contracts have force majeure clauses that have to trigger to get them out of the financial obligations associated with the venue and all of the other things that make a con a con

Those force majeure clauses really need to be triggered by the actions of the state and/or local governments, or by the venues

The conventions all know they’re likely going to cancel. They just want to make sure they can come back in 2021.

Ok that’s it. Be kind. Vote. And I can’t wait to see all of my convention people in 2021. I miss you guys 💜