The Evening of the Year 4, organized by the streamer Ibai Llanos, which was held on Saturday, July 13, ended with controversy: the performance of Puerto Rican Anuel AA, which lasted barely eight minutes and he left amid boos. The organizers have stated that Anuel showed up an hour and a quarter late, that he did not want to go out and that his voice sounded very weak and with roars. In fact, Ibai Llanos has hinted that he will not pay the reggaeton singer his fee for his poor performance. For his part, Anuel has alleged that he only arrived five minutes late and that the organizers sabotaged him.
These types of conflicts in the live music sector are more common than it seems and, to avoid bloodshed, promoters and artists negotiate (or should negotiate) in performance contracts the reasons for cancellation and the resulting responsibilities. “The legal battle will be won by whoever has best protected themselves by contract,” says Paula Sánchez, Head of Legal specializing in live music from Sympathy for the Lawyer.
The expert insists that the conditions of this type of event, including provisions on possible causes of cancellation, must be negotiated months in advance (sometimes up to a year before the event), always be in writing and reviewed by lawyers. “In the event that there is no signed contract, the parties will have to take into account the emails and even to the whatsapps that the teams of each of the parties have crossed paths,” explains the lawyer, who recognizes that this route can be a source of conflict.
The most common reasons for cancellation included in these contracts are, as noted by Iban Diez, partner at Menta Legal, the justified non-appearance of the artist due to death or illness; force majeure; serious disturbances that prevent the normal and peaceful development of the event; damage or destruction of the facilities; problems with capacity; or that the performance cannot take place because there are legal provisions that do not allow it.
The artist’s failure to appear due to illness was the reason for the recent cancellation of a concert by Isabel Pantoja in Valladolid. As a result, the promoter is claiming 330,000 euros from the tour producer: 200,000 euros for the singer’s fee and 130,000 for production costs. An insignificant amount compared to the more than 60 million dollars claimed from Justin Bieber and his team for the cancellation of his Purpose Tour in 2017 due to mental health problems. These figures were reached because the demands also included ticket refunds, travel and accommodation expenses for fans and the loss of profits for local companies that depended on the concerts.
“If the artist cannot perform for health reasons, it is generally considered a justified cause for cancellation, but the responsibility falls on him,” explains Inés Chaguaceda, a lawyer at Menta Legal. This means that the artist or band must return what they have received up to that point if the reason for cancellation is justified and, if it is not, they will also have to pay compensation to the organizer for damages.
Inclement weather
On the other hand, if the reason for cancellation is the promoter’s responsibility, the promoter must pay the artist his fee and, if he is at fault or negligent, compensate him for any damages suffered. Possible causes of cancellation attributable to the promoter include the event not being economically profitable, the promoter not being able to carry it out, the promoter’s suppliers not complying, the promoter not having obtained the relevant administrative licences or the promoter not complying with any of the obligations of the contract.
However, determining which party should be responsible for the cancellation of the show is a very contentious issue. The origin of these disputes, says Paula Sánchez, are usually aspects that were not fully regulated in the contract “such as lack of agreement on the rider technical (technical needs of the show), performance schedules, the suitability of the artist’s safety in the venue or meteorological causes.”
Cancellations due to bad weather, natural disasters or other unforeseeable and unavoidable circumstances are usually assumed by the organiser. As Iban Diez points out, in these cases, the only way out of paying the artist is if the contract includes a specific clause on force majeure. Something that, according to Paula Sánchez, is quite common and turns the tables. “In this case, the artist must reimburse the fee charged, although exceptions can be included when the cause is covered by the insurance contracted by the promoter,” says the lawyer.
A concert involves a multitude of risks, both for the promoter and for the artists. For this reason, both usually cover their backs by taking out insurance. Laura Ochoa, partner at Clyde & Co, points out that there is a wide variety of products that could provide coverage for this type of event. “From multi-risk policies to specific civil liability insurance for shows and concerts,” she explains.
Furthermore, according to Ochoa, it is becoming increasingly common for concert-goers to have event cancellation insurance, artist non-attendance insurance or travel insurance. “Through event cancellation insurance, the insurer guarantees payment of the expenses incurred by the insured party in the planning, preparation and execution of the insured event or show, if it is cancelled or postponed,” he explains.
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