Thread by @pmdfoster

🚨🚨☀️🌤🕶🏞🎸🎪🌤🕶🚨🚨NEW: just as you thought #COVID19 lockdown was ending and the Summer of Fun was beginning UK festivals & events are warning of cancellations unless government underwrites insurance - stay with me, this could become a thing/1

on.ft.com/3lWLBnX

So what's the problem? Its that with a third wave in Europe the risks of putting on mega events is very high without cancellation insurance - in case, say, the govt reverts to 'max 30 gatherings for EG'. Lots of festivals are SOLD OUT, but that doesn't mean they'll go ahead. /2

How do we know this? Well, some are already cancelling - like the Belladrum Tartan Heart music festival - which specifically cited insurance issues, which is unavailable in the commercial market after $8bn losses in 2020 /3

tartanheartfestival.co.uk

The problem as @tim_thornhill @TysersInsurance tells me is that if you've, say collected £6m in ticket sales for a big festival, you don't spend much money at the start - a bit on marketing etc but the big £££££££ comes later as you start to pay suppliers to build stages etc /4

@tim_thornhill @TysersInsurance This is the so-called "drop-dead date" at which you can either postpone/hand back money without massive financial losses OR push on, commit millions but at that point you need to be very sure it's happening. Otherwise there is huge financial exposure /5

@tim_thornhill @TysersInsurance This is why - with no commerical insurance available - groups like @LiveMusic_UK @ISM_music @UK_Music are URGING the government to underwrite cancellation insurance - as other EU governments have - Germany €2.5bn, Austria and the Netherlands around €300m each. /6

@tim_thornhill @TysersInsurance @LiveMusic_UK @ISM_music @UK_Music Why should the government do this, I hear you cry? Well, one is economic, @UK_Music estimates a £650 scheme would unlock £2bn of economic activity. See P.25 of their report here:/7

ukmusic.org/wp-content/upl…

@tim_thornhill @TysersInsurance @LiveMusic_UK @ISM_music @UK_Music Don't make the mistake of thinking this is all frivolity - UK events industry is worth £84bn a year, according to the Business Visit and Events Partnership: £6bn from festivals, £17.6bn from music, £9.6bn from sports and £14.7bn from weddings and other private events. $$$$ /8

@tim_thornhill @TysersInsurance @LiveMusic_UK @ISM_music @UK_Music IN asking for £650m scheme, then industry also point out that the Govt has provided a £500m for TV and Film productions to cover insurance costs. There is a clear precedent here /9

gov.uk/government/new…

@tim_thornhill @TysersInsurance @LiveMusic_UK @ISM_music @UK_Music & As Greg Parmley @Gregparmley boss of @LiveMusic_UK
tells me, the clock is ticking: “a steady stream of recent cancellations” is already happening.

"...without the development of a government-backed insurance scheme now, the summer is going to time out for many organisers."/10

@tim_thornhill @TysersInsurance @LiveMusic_UK @ISM_music @UK_Music And as Crispin Thornhill CEO of @theoae Age of Enlightenment orechestra tells me: “It’s all about confidence, and if people feel they can plan, they will and the confidence that that generates will move the sector in the right direction and start to heal itself." /10

So what about the government? Well they've not ruled it out, but as culture minister Caroline Dinenage @cj_dinenage said at Westminster Hall debate last week its "difficult" decision and ultimately "for the treasury" to make /11

parliamentlive.tv/event/index/96…

The govt also points out it has provided an unprecedented £2bn culture recovery fund which has already reached 3,800 organisations, including £8m to live events and festivals. /11

@cj_dinenage A spox adds: “We are aware of the concerns raised about the challenge of securing indemnity for live events and are exploring all barriers to reopening and what further support we may provide,” the department added. /12

@cj_dinenage So things may happen yet...but as @BelladrumFest cancellation last week shows....this is fast becoming a NOW problem for events due to take place in July/August...the "drop dead" dates are approaching fast.

Tick-tock....happy summers all. ENDS