The impact of the recent hurricane Sandy in New York has provided a big debate regarding to the amount of losses who has been encountered in the live entertainment industry. Companies as Live Nation, AEG, are suffering in a significant way and the reschedule of the concerts is not a comfortable and convenient thing.
President of AEG, Randy Philips, says that this happening is serious because of involving one of the most significant entertainment industries and the amount of expenses encountered by stakeholders will be hardly recouped. That’s because at the moment it’s difficult to predict what will happen again.
This blog reflects the relationship between artist and promoter who don’t have to pay a guarantee provided that this is a case of force majeure clause application. On the other hand, there have been significant losses related to marketing and promotion costs provided by the cancellment of big concerts, apart from damages that not every venue covers in terms of insurance due weather conditions.