As concerts and events have been canceled left and right this season due to the COVID-19 pandemic, top concert promoters like Live Nation and AEG are asking for help. They’ve joined forces to collectively ask for federal aid due to the major damage caused. In the memo, they call on Congress to broaden the Paycheck Protection Act to companies in the industry with 500 or fewer employees. It also asks for more loans to mid-sized businesses under the CARES ACT and the Federal Reserve’s Main Street Lending program.
“Our businesses were the first to close and will be the last to reopen, Without immediate financial assistance, the future of the public entertainment and event industry is in question. Accordingly, Congress must act now to address the severe impact that governmental closures orders have had on this industry “
The events industry has specifically seen a hit due to the Coronavirus. They’ve faced unilateral cancellation through almost all of North America and may face the possibility of going an entire year without any revenue.
“Many insurance carriers have pre-emptively asserted that property damage and event cancellation policies will not provide coverage related to the COVID-19 pandemic. We expect the industry will continue to be disproportionately impacted, as it is likely that even once many of the current orders are relaxed there may well continue to be restrictions and limitations imposed upon public gatherings for an extended period”
As of now, 25,000 jobs have been lost and the industry will face a $10 billion loss this summer. This number has the potential to double if all larger events are shut down until 2021. As it seems, as America slowly starts to relax their stay-at-home orders, the event industry could still be out of commission for much longer due to their huge crowds.
We will keep a close eye on this story and hope for the places we like to call our ‘happy place.”