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Alberta

Update – Your event has been cancelled

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12 minute read

Update:  Ilan appeared with Edmonton radio station 630 CHED’s J’lyn Nye on October 5th, 2020 where they discussed the severe challenges in the live event industry.  You can read Ilan’s original story below.

Click to listen to Ilan Cooley’s interview with J’lyn Nye.

Your Event Has Been Cancelled

By Ilan Cooley

The live event industry is in serious trouble. It was the first sector to go dark due to the pandemic, and it is expected to be the last to be allowed back to work.

The people behind the scenes of your favourite events are the mavericks and risk takers you likely don’t know about. They create the events that make you smile until your face hurts, cheer until you lose your voice, and dance until you can’t stand up. They make the magic that fills your social feeds, and the moments that live in your memories.

You may have gotten an email saying “your event has been cancelled” – they lost their livelihood.

“People don’t understand how bullseye targeted this virus was at our industry,” says Jon Beckett, owner of Production World. “It was a 100% bullseye. You couldn’t hit it more dead centre. It’s not like it hurt us – it took it away. People don’t understand that until you talk to them about your industry.”

Production World Staff

Beckett’s company used to employ 50 people. Having lost more than 200 events so far, they have laid off 35 people. Their 25,000 square foot warehouse contains almost seven million dollars worth of staging, lighting and other production equipment.

“We have to house that inventory,” he says. “It is not like we can sell it.”

Similarly, Fort Saskatchewan based Superior Show Service has two separate warehouses full of rental items nobody currently needs, plus tax bills and insurance due. As a 35-year-old family-run event rental company, they cater to tradeshows and large events. Some of the 35 staff they laid off in March have been hired back after accessing relief programs, but with more than 80 events already cancelled, owner Chris Sisson worries about the future.

“It feels like the carpet kicked out from under you,” he says. “I’ve always been able to provide for a great number of families, not just my own, and today I have no idea how to provide for my own. I have been in this industry my entire life, and now I have no idea what to do. It is truly humbling and dumbfounding.”

Chris Sisson of Superior Show Service

Event promoter Mike Andersson prefers not to dwell on what has been lost, instead focusing on building something consumers will want to come back to when it is over. He knows how to manage complex logistics and bring large groups of people together. Even when faced with severe restrictions for events, his company, Trixstar, was busy creating pandemic proof event manifestos, and blue-sky concepts for safe gatherings.

“When everything came crashing down we were putting up material about what events look like after this, and showing some optimism,” he says. “It is important to get people together and to celebrate.” He admits there are good days and bad days. “It is a rollercoaster of emotions,” he says. “Obviously we feel terrible. It affects us, but it affects so many companies. From the security companies, to the ticketing companies, to the tent company, to the production company – all those people are affected.”

Event photographer Dale MacMillan also worries about the people behind the scenes. He has lost more than 100 days of shooting for professional sporting events, large music events, festivals and fairs, which makes up about 60% of his income, and he knows others are in the same situation.

Dale MacMilon takes event photos like this shot of Trixstar

“There’s a guy sitting out there with probably a quarter section of land and he’s probably got 5500 porta potties that are out at ten to 20 events throughout the month, and he is affected tremendously,” says MacMillan. “I see some of the guys that are usually in the business of trucking the machinery to set up the fairs and festivals that are delivering for Amazon now. I look at all of those people who work the booths to break plates. They are not working at all. How else is a guy who owns a plate breaking booth going to get any other business?”

Even artists like Clayton Bellamy are wondering how to pay their bills. As a successful singer/songwriter and member of Canada’s top country band, The Road Hammers, he wishes the gold records on his wall represented a decent living, but admits there is no money to be made without touring. With up to 90% of his income derived from live shows, and almost no revenue from music streaming, he says he will do whatever it takes to feed his family.

Clayton Bellamy performing (pre-COVID)

“Obviously I have kids and that comes first before anything,” he says. “The main thing to do is to find work.” He also knows lack of touring impacts others. “Our band employs a lot of people. It is not just me on the stage – it is the tour manager, and the person in the office answering the phones at the management company, and the manager. We help employ 50 people. If you think about the industry as a whole, there are a lot of people relying on that trickle-down.”

Clayton Bellamy

Beckett says the model for live events has changed forever.

“If we are going to collapse, then we are going to give it all we can. Right now, we are optimistic that we can somehow find ways to juggle.”

Production World is streaming virtual events to online audiences, and delivering reimagined AHS compliant live events with a mobile stage, video wall, and in-car audio for things like graduations, weddings, movies, drive in music events, and even funerals. They are retrofitting churches for virtual services, and recording content to deliver music and sermons to parishioners.

Sisson suggests his industry should collaborate with government and other industry professionals to develop a plan, like doing events by the hour to control occupancy counts, disinfecting surfaces, contact tracing and testing, and utilizing existing technologies like temperature checks and facial recognition.

“I will be ashamed of our industry if we cannot have something that is approved and a way to conduct ourselves by October,” he says. “At the end of the day there are a lot of livelihoods that need to get looked after.”

MacMillan says the advice his parents gave him to plan for a rainy day was valid. He will get creative with other revenue sources and try to take advantage of programs and subsidies.

“If it helps you along one more month, it is one more month that you can make it until things open up again.”

Bellamy tries to keep his mental health in check by maintaining a rigorous schedule of practicing, writing, and working on existing projects. He plans to finish a new record so he can hit the ground running when touring resumes.

“Right now, I have no income,” he says. “I don’t have a safety net. I don’t have a plan B.”

He says if people want to support their favourite artists they should buy music and merchandise directly, like and share posts and music on social media, and send a letter to the government to help change laws that impact fair pay for artists’ streaming rights.

A return to “normal” is a long way off, and no matter when life starts to feel unrestricted again the world will be altered, and things will be different. Behind the scenes, the event industry not just trying to reinvent itself, it is fighting for survival.

“People don’t think about the human side of it and all that goes into it and all the different companies that come together to produce an event,” says Anderson. “Nobody in the entertainment industry is making a dollar right now. Everyone has to figure out how to survive this, and survive it together. So, my optimism is, I think a lot of companies are going to survive this because they are working together. They are going to support each other once we come out the other side.”

On September 22nd Canadian event industry technicians, suppliers and venues from across the country will Light Up Live events in red to raise awareness for the live event industry – which is still dark.

This article was originally published on September 22, 2020.

www.ilancooley.com

Read more on Todayville.

 

Ilan Cooley is an Edmonton-based entrepreneur and writer who proudly works in the live event industry.

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Alberta

Premier Smith says Auto Insurance reforms may still result in a publicly owned system

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Better, faster, more affordable auto insurance

Alberta’s government is introducing a new auto insurance system that will provide better and faster services to Albertans while reducing auto insurance premiums.

After hearing from more than 16,000 Albertans through an online survey about their priorities for auto insurance policies, Alberta’s government is introducing a new privately delivered, care-focused auto insurance system.

Right now, insurance in the province is not affordable or care focused. Despite high premiums, Albertans injured in collisions do not get the timely medical care and income support they need in a system that is complex to navigate. When fully implemented, Alberta’s new auto insurance system will deliver better and faster care for those involved in collisions, and Albertans will see cost savings up to $400 per year.

“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable. When it’s implemented, our new privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”

Danielle Smith, Premier

“High auto insurance rates put strain on Albertans. By shifting to a system that offers improved benefits and support, we are providing better and faster care to Albertans, with lower costs.”

Nate Horner, President of Treasury Board and Minister of Finance

Albertans who suffer injuries due to a collision currently wait months for a simple claim to be resolved and can wait years for claims related to more serious and life-changing injuries to addressed. Additionally, the medical and financial benefits they receive often expire before they’re fully recovered.

Under the new system, Albertans who suffer catastrophic injuries will receive treatment and care for the rest of their lives. Those who sustain serious injuries will receive treatment until they are fully recovered. These changes mirror and build upon the Saskatchewan insurance model, where at-fault drivers can be sued for pain and suffering damages if they are convicted of a criminal offence, such as impaired driving or dangerous driving, or conviction of certain offenses under the Traffic Safety Act.

Work on this new auto insurance system will require legislation in the spring of 2025. In order to reconfigure auto insurance policies for 3.4 million Albertans, auto insurance companies need time to create and implement the new system. Alberta’s government expects the new system to be fully implemented by January 2027.

In the interim, starting in January 2025, the good driver rate cap will be adjusted to a 7.5% increase due to high legal costs, increasing vehicle damage repair costs and natural disaster costs. This protects good drivers from significant rate increases while ensuring that auto insurance providers remain financially viable in Alberta.

Albertans have been clear that they still want premiums to be based on risk. Bad drivers will continue to pay higher premiums than good drivers.

By providing significantly enhanced medical, rehabilitation and income support benefits, this system supports Albertans injured in collisions while reducing the impact of litigation costs on the amount that Albertans pay for their insurance.

“Keeping more money in Albertans’ pockets is one of the best ways to address the rising cost of living. This shift to a care-first automobile insurance system will do just that by helping lower premiums for people across the province.”

Nathan Neudorf, Minister of Affordability and Utilities

Quick facts

  • Alberta’s government commissioned two auto insurance reports, which showed that legal fees and litigation costs tied to the province’s current system significantly increase premiums.
  • A 2023 report by MNP shows
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Alberta

Alberta fiscal update: second quarter is outstanding, challenges ahead

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Alberta maintains a balanced budget while ensuring pressures from population growth are being addressed.

Alberta faces rising risks, including ongoing resource volatility, geopolitical instability and rising pressures at home. With more than 450,000 people moving to Alberta in the last three years, the province has allocated hundreds of millions of dollars to address these pressures and ensure Albertans continue to be supported. Alberta’s government is determined to make every dollar go further with targeted and responsible spending on the priorities of Albertans.

The province is forecasting a $4.6 billion surplus at the end of 2024-25, up from the $2.9 billion first quarter forecast and $355 million from budget, due mainly to higher revenue from personal income taxes and non-renewable resources.

Given the current significant uncertainty in global geopolitics and energy markets, Alberta’s government must continue to make prudent choices to meet its responsibilities, including ongoing bargaining for thousands of public sector workers, fast-tracking school construction, cutting personal income taxes and ensuring Alberta’s surging population has access to high-quality health care, education and other public services.

“These are challenging times, but I believe Alberta is up to the challenge. By being intentional with every dollar, we can boost our prosperity and quality of life now and in the future.”

Nate Horner, President of Treasury Board and Minister of Finance

Midway through 2024-25, the province has stepped up to boost support to Albertans this fiscal year through key investments, including:

  • $716 million to Health for physician compensation incentives and to help Alberta Health Services provide services to a growing and aging population.
  • $125 million to address enrollment growth pressures in Alberta schools.
  • $847 million for disaster and emergency assistance, including:
    • $647 million to fight the Jasper wildfires
    • $163 million for the Wildfire Disaster Recovery Program
    • $5 million to support the municipality of Jasper (half to help with tourism recovery)
    • $12 million to match donations to the Canadian Red Cross
    • $20 million for emergency evacuation payments to evacuees in communities impacted by wildfires
  • $240 million more for Seniors, Community and Social Services to support social support programs.

Looking forward, the province has adjusted its forecast for the price of oil to US$74 per barrel of West Texas Intermediate. It expects to earn more for its crude oil, with a narrowing of the light-heavy differential around US$14 per barrel, higher demand for heavier crude grades and a growing export capacity through the Trans Mountain pipeline. Despite these changes, Alberta still risks running a deficit in the coming fiscal year should oil prices continue to drop below $70 per barrel.

After a 4.4 per cent surge in the 2024 census year, Alberta’s population growth is expected to slow to 2.5 per cent in 2025, lower than the first quarter forecast of 3.2 per cent growth because of reduced immigration and non-permanent residents targets by the federal government.

Revenue

Revenue for 2024-25 is forecast at $77.9 billion, an increase of $4.4 billion from Budget 2024, including:

  • $16.6 billion forecast from personal income taxes, up from $15.6 billion at budget.
  • $20.3 billion forecast from non-renewable resource revenue, up from $17.3 billion at budget.

Expense

Expense for 2024-25 is forecast at $73.3 billion, an increase of $143 million from Budget 2024.

Surplus cash

After calculations and adjustments, $2.9 billion in surplus cash is forecast.

  • $1.4 billion or half will pay debt coming due.
  • The other half, or $1.4 billion, will be put into the Alberta Fund, which can be spent on further debt repayment, deposited into the Alberta Heritage Savings Trust Fund and/or spent on one-time initiatives.

Contingency

Of the $2 billion contingency included in Budget 2024, a preliminary allocation of $1.7 billion is forecast.

Alberta Heritage Savings Trust Fund

The Alberta Heritage Savings Trust Fund grew in the second quarter to a market value of $24.3 billion as of Sept. 30, 2024, up from $23.4 billion at the end of the first quarter.

  • The fund earned a 3.7 per cent return from July to September with a net investment income of $616 million, up from the 2.1 per cent return during the first quarter.

Debt

Taxpayer-supported debt is forecast at $84 billion as of March 31, 2025, $3.8 billion less than estimated in the budget because the higher surplus has lowered borrowing requirements.

  • Debt servicing costs are forecast at $3.2 billion, down $216 million from budget.

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