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Event Management

This document discusses considerations for landowners interested in hosting events on their property. It emphasizes that events can generate significant revenue if managed well by increasing public awareness of the venue. It recommends landowners create a business plan and budget to determine costs and pricing. Landowners have options to hire an event organizer, run the event themselves, or appoint an event manager. Setting up a limited company and entering contracts appropriately can help manage risks. Supply contracts should clearly define responsibilities and key issues like intellectual property licensing, financial terms, liability, insurance, force majeure provisions, and termination conditions.

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42 views2 pages

Event Management

This document discusses considerations for landowners interested in hosting events on their property. It emphasizes that events can generate significant revenue if managed well by increasing public awareness of the venue. It recommends landowners create a business plan and budget to determine costs and pricing. Landowners have options to hire an event organizer, run the event themselves, or appoint an event manager. Setting up a limited company and entering contracts appropriately can help manage risks. Supply contracts should clearly define responsibilities and key issues like intellectual property licensing, financial terms, liability, insurance, force majeure provisions, and termination conditions.

Uploaded by

aryasanu
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Page 1

Event management risky business or revenue generator?


Serena Hedley-Dent | October 2010 It was the 40th anniversary of the Glastonbury Festival this year. Since its humble beginnings the event has grown out of all recognition to become a major international festival. Michael Eavis and his daughter, the owners of the festivals main site, Worthy Farm, remain central to the organisation of the festival and have built up an enormously valuable business. Not all landowners would want to emulate the Glastonbury example. Over the last decade, though, the number of events held on privately owned land has increased. Good examples are the Blenheim Triathlon, the V Music Festival (held at the split sites of Weston Park / Hylands Park), the Ice Rinks at the Natural History Museum and Hampton Court, the London Fashion Week and the Summer Series at Somerset House and the Festival of Speed and Glorious Goodwood. Events such as these demonstrate that landowners can run events themselves, or strike a better deal in terms of revenue, rather than simply hire a venue/property to an event organiser for a flat fee. Events can increase the profile and public awareness of the venue and generate significant returns for the landowner, if managed well.

Event budget and business plan


Key to the financial success of any event will be a sound business plan and event budget. The costs of staging the event are likely to be ascertainable in advance; this will be invaluable in helping to price the event and to determine the break-even point. With the basic event costs established, landowners can develop lucrative ancillary revenue streams. Where possible, landowners may seek sponsorship and broadcast revenues, for example. In addition, there will be merchandising opportunities: common examples are concessions/trade exhibitions at the event, for which the stall/stand holders are charged a fee, as well as the sale of event-specific merchandise. Creative thinking about these ancillary activities can significantly add to financial success. It is worth remembering, though, that it can take several years for an event to establish itself and it is unlikely to be very profitable in year one.

How to organise an event


There are numerous options. The simplest is hiring out the venue to an event organiser for a flat fee, although landowners may want (or be prepared to accept) a portion of the fee to be based on the events turnover. The advantage of this approach is that someone else organises the event and assumes the risks. The downside is that control over what is happening on your land is lost, and financially you may not get the best return. Alternatively, landowners can look to own and run the event themselves. If they do so, then it is advisable to take steps early on to protect the event brand, for example by registering the name and/or logo as a trade mark. The landowner then needs to consider whether to organise the event himself or the third option to appoint a third party event manager (possibly to work alongside the landowner). Landowners who have not previously run events may find an event manager brings experience and contacts and can help make the most of a propertys assets. In either case, it would be sensible from a risk management point of view to consider creating a limited company (a) to hold the rights in the event (even if these only amount to a name and logo) and (b) to be the party which enters into the required contracts.

Telephone: +44 (0)20 3375 7000

Email: [email protected]

Web: www.farrer.co.uk

Page 2

It is important to ensure that supply contracts are entered into. The potential number of supplies required for an event may be vast, covering all sorts of logistics and infrastructure. Regardless of what the supply contract is for, certain key issues should always be dealt with, even in the contract with the event manager. We have summarised the critical points below. Issue What is being supplied by the other party? Event Manager Set out clearly which aspects of the event the manager is responsible for. If it is all aspects of the event, the event plan, timetable and budget should be annexed to the contract. The event manager will need a licence to use all of these to deliver the event. Supplier Be clear as to what is being supplied. Make sure that elements of supply do not fall between suppliers.

Licence of Intellectual Property Rights in Event Name

Only those suppliers who need to use the name and logo on suppliers being provided for the event will need a licence (e.g. ticketing/ advertising suppliers will need a licence; a supplier providing trade stands is unlikely to). Costs with suppliers are likely to be easily predicted on the basis of their standard supply terms.

Financial Terms

There are different financial models. The event manager is likely to want some sort of management fee for the work undertaken (usually a percentage of the revenues). Where an event manager is appointed you will want to provide that the event manager is liable for the things it undertakes. You should require it to take out insurance with a reputable company. Note: as the landowner some liabilities will still rest with you (e.g. occupiers liability and, potentially, public liability) so you will still need insurance. A standard force majeure clause may not be appropriate because a force majeure act affecting one element of the event should not mean the whole event is cancelled Where the event is likely to run for a few years, you may want to include the ability to terminate early if the service is not up to standard.

Legal Liability and Insurance

Liability for the provision of a particular aspect of the event should rest with the supplier (e.g. a catering supplier should assume liability for the quality of the food).

Force Majeure (Act of God)

A standard force majeure clause may not be appropriate for the same reason, and you may need to require suppliers to find an alternative source or to meet the costs of your doing so. Termination should be linked to performance, as one means of ensuring the supplier delivers on time and on budget.

Termination/Exit

Developing a consistent and coordinated approach to these issues will assist the overall contract management task and be for the benefit of the event. In addition to the contracts that create the event infrastructure, contracts may also be needed with, for example, sponsors and broadcasters, as well as with companies who will deal with marketing, ticketing and other promotional issues. Consideration will also need to be given to issues such as planning, licensing, policing and Health and Safety. Consultation with local and other authorities will be necessary, and certain requirements may have to be met. We will explore how to approach local authorities in an article in the next Newsletter and at our November seminar. Serena Hedley-Dent

Telephone: +44 (0)20 3375 7000

Email: [email protected]

Web: www.farrer.co.uk

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