Bulletin YOUR DAILY ENTERTAINMENT NEWS UPDATE MARCH 27, 2020 Page 1 of 25 INSIDE ‘Everyone Else Will Likely Go Out of • Amid Stubhub Business’: Why Most Ticketing Layoffs & Liquidity Crisis, Ticket Brokers Companies Won’t Survive COVID-19 Push for a Bailout • Will Summer BY SIMON RUST LAMB Album Releases Be Coronavirus’ Next Ticketing companies are bracing for no revenue and that is Ticketmaster, AEG, See Tickets will make it Victim? the potential for unprecedented refund requests as through by proxy because they’re owned by Vivendi. live music events disappear from the calendar because Eventbrite will make it through because they have a • House Passes $2 Trillion Coronavirus of the spread of COVID-19, the disease caused by the very large war chest at their disposal,” predicts Sims. Relief Package With novel coronavirus. “Almost everyone else will likely go out of business.” Benefits for Music “I can’t tell you how many times over the last week One issue that makes ticketing companies particu- Workers or two, where I have just thought to myself, ‘Thank larly vulnerable is that many now play an important • Acimagnist faccus God this didn’t happen when I was running my ticket- role financing shows and festivals. The mass cancel- volupie nditibus con ing company,’” says Todd Sims, founder and former lation of events and festivals cause by the outbreak posania chief executive Flavorus, which was bought by See of coronavirus, many partially funded by ticketing Tickets in 2016. “What if, seven or eight years ago, advances, has left ticketing companies particularly • Sony Outlines Flavorus and Insomniac faced this? We wouldn’t have vulnerable. Coronavirus Impact on Music, Film and made it through this; it would have been end game. “Generally, I did not advance money to promoters Game Divisions Those companies will survive now but only because until the show was over unless I was comfortable with they’re owned by much larger companies.” who they were—which happened in rare cases,” ex- • UK Music Industry So how will things shake out? Not great for most plains Fred Rosen, who was Ticketmaster CEO from Welcomes ‘Vital Lifeline’ for Self- ticketing companies — layoffs have already been 1982 to 1998. “When I advanced money, Ticketmaster Employed, But Warns announced at ShowClix and Audienceview, which secured it in various ways and always got paid—in Two Month Wait Too bought Vendini last year, with more on the way. some cases, we even received liens,” says Fred Rosen. Long “The only ones who are really going to survive this In order to incentivize venues and promoters to are going to be the ones with the resources to make grant their long-term exclusive ticketing rights, ticket- it through. You’ll see a landscape at the end of this (continued) ACCESS THE BEST IN MUSIC. A DIGITAL VERSION OF EVERY ISSUE, FEATURING: COVER STORIES . SPECIAL REPORTS . CHARTS . REVIEWS INTERVIEWS . EVENT COVERAGE & MORE AVAILABLE FREE TO CURRENT BILLBOARD SUBSCRIBERS billboard.com/iPad Gotta Have It_07_032820.indd 1 3/23/20 11:45 AM Page 3 of 25 IN BRIEF ing deals may include a substantial advance, serves as the company’s Managing Member). “We’ve seen instances where the ratio extra ticket fees and/or the ability for their But even though Ultra stands behind the le- was 50/50 on refunds versus keeping tick- clients to pre-settle shows—meaning, the gal language of its ticket purchase agreement, ets,” says Boris Patronoff, chief executive ticketing company will advance the client fans unhappy with the festival’s decision may for See Tickets North America. “If you com- ticket sales money from future shows. In re- still dispute the charge through their credit municate well and tell the fans you can get a cent years, competition between ticket com- card provider and pursue a chargeback. How refund or keep your ticket, and you’re clear panies has led to more promoters with less many fans seek refunds and how the credit and you’ve been treating them well in the financial security accessing ticketing money card companies handle such requests will past, you will have people that will support prior to an event’s completion. Promoters determine Ultra’s fate. you and they will keep their ticket to go to have used these advanced funds without (Billboard made multiple attempts to the show.” restriction, paying corporate overhead and contact Marc Jenkins, chief executive of Ticketing companies are connecting with legitimate show-related costs like artist and Showclix owner Patron Technology but did their promoter and venue clients and reas- venue deposits. not receive a response. Earlier this week, sessing their policies. Eventbrite paused Some promoters, however, have used the Patron let go of 30 percent of its staff ). advanced payouts to its clients and is work- money to cover past losses or blown it on When a fan wants a refund, credit card ing on solutions within its ecosphere and extravagant expenses. Fyre Fest founder companies generally have obliged — in ad- beyond. Billy McFarland was advanced ticketing dition to the ticket price and possibly the “That spans from lobbying efforts, like the money for his ill-suited even far in advance, service fee, any promoter or ticketing com- recent letter we sent to White House and much of it disappearing into a cloud of pany is also responsible for a per transaction Congressional Leadership on behalf of event private jet exhaust long before the festival chargeback fee that ranges from $15 to $35. creators across America, to refund reform production bills become due. If any promoter does not have the funds that preserves the loyalty of the ticket Refunds become the ticketing company’s to issue refunds, then the liability for the buyers so critical to live music’s eventual problem when a promoter does not have the money flows through the ticketing company, return,” says Andy Donner, Eventbrite’s money to issue refunds. The name of the the Independent Sales Organization (ISO), svp of music and corporate development, via ticketing company, not the promoter, ap- the sponsoring bank, and finally Visa, Mas- email. Earlier this month, Eventbrite chief pears as the vendor on the credit card bill. tercard or American Express. executive Julia Hartz wrote Pres. Trump When Ultra Music Festival postponed its “The industry is going through an aberra- and requested the federal government 2020 Miami festival to March 2021, the com- tion — and the public’s not going to lose any make SBA Economic Injury Disaster Loans pany promised to honor 2020 festival tickets money on these shows. In the end, if you’ve available nationwide, approve as many loan at either the 2021 or 2022 festival in Miami. got a festival and they don’t want to give types and loans as possible and send direct The festival did not offer refunds. Ultra sold your money back to you, charge it back on payments to individual taxpayers. tickets through Showclix Inc. via a white your credit card,” Rosen says. Despite the economic uncertainty, See label ticketing company Ticketfreak, LLC If an event is postponed, not all fans de- Tickets is “continuing pre-settling funds (Ultra Festival partner, Adam Russakoff, mand refunds. with some promoters and we’ve adjusted DECISIVE INTELLIGENCE. 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Page 5 of 25 IN BRIEF with others after a discussion with them,” from sports leagues and Ticketmaster. those in ticketing (and live events in gen- Patronoff says. “If the promoter is doing That’s because teams and promoters eral) to stay afloat,” he tellsBillboard . “We all the right things with a clear plan while are trying to reschedule games, postpone would like to see ticketing and live events being fully transparent with the consumers concerts and do everything they can to avoid put in the same category as airlines, hotels and us and if it makes business sense then paying back tens of millions of dollars worth and cruise lines when it comes to applying we support them.