Update – Your event has been cancelled

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 22^nd 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

Ilan Cooley

www.ilancooley.com/

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

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Update – Your event has been cancelled

#EdmontonStrong / 5 years ago

Bug in a Jar – Isolation 101

Community / 5 years ago

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Alberta

Equalization program disincentivizes provinces from improving their economies

Published on September 11, 2025

Todayville

From the Fraser Institute

By Tegan Hill and Joel Emes

As the Alberta Next Panel continues discussions on how to assert the province’s role in the federation, equalization remains a key issue. Among separatists in the province, a striking 88 per cent support ending equalization despite it being a constitutional requirement. But all Canadians should demand equalization reform. The program conceptually and practically creates real disincentives for economic growth, which is key to improving living standards.

First, a bit of background.

The goal of equalization is to ensure that each province can deliver reasonably comparable public services at reasonably comparable tax rates. To determine which provinces receive equalization payments, the equalization formula applies a hypothetical national average tax rate to different sources of revenue (e.g. personal income and business income) to calculate how much revenue a province could generate. In theory, provinces that would raise less revenue than the national average (on a per-person basis) receive equalization, while province’s that would raise more than the national average do not. Ottawa collects taxes from Canadians across the country then redistributes money to these “have not” provinces through equalization.

This year, Ontario, Quebec, Manitoba and all of Atlantic Canada will receive a share of the $26.2 billion in equalization spending. Alberta, British Columbia and Saskatchewan—calculated to have a higher-than-average ability to raise revenue—will not receive payments.

Of course, equalization has long been a contentious issue for contributing provinces including Alberta. But the program also causes problems for recipient or “have not” provinces that may fall into a welfare trap. Again, according to the principle of equalization, as a province’s economic fortunes improve and its ability to raise revenues increases, its equalization payments should decline or even end.

Consequently, the program may disincentivize provinces from improving their economies. Take, for example, natural resource development. In addition to applying a hypothetical national average tax rate to different sources of provincial revenue, the equalization formula measures actual real-world natural resource revenues. That means that what any provincial government receives in natural resource revenue (e.g. oil and hydro royalties) directly affects whether or not it will receive equalization—and how much it will receive.

According to a 2020 study, if a province receiving equalization chose to increase its natural resource revenues by 10 per cent, up to 97 per cent of that new revenue could be offset by reductions in equalization.

This has real implications. In 2018, for instance, the Quebec government banned shale gas fracking and tightened rules for oil and gas drilling, despite the existence of up to 36 trillion cubic feet of recoverable natural gas in the Saint Lawrence Valley, with an estimated worth of between $68 billion and $186 billion. Then in 2022, the Quebec government banned new oil and gas development. While many factors likely played into this decision, equalization “claw-backs” create a disincentive for resource development in recipient provinces. At the same time, provinces that generally develop their resources—including Alberta—are effectively punished and do not receive equalization.

The current formula also encourages recipient provinces to raise tax rates. Recall, the formula calculates how much money each province could hypothetically generate if they all applied a national average tax structure. Raising personal or business tax rates would raise the national average used in the formula, that “have not” provinces are topped up to, which can lead to a higher equalization payment. At the same time, higher tax rates can cause a decline in a province’s tax base (i.e. the amount of income subject to taxes) as some taxpayers work or invest less within that jurisdiction, or engage in more tax planning to reduce their tax bills. A lower tax base reduces the amount of revenue that provincial governments can raise, which can again lead to higher equalization payments. This incentive problem is economically damaging for provinces as high tax rates reduce incentives for work, savings, investment and entrepreneurship.

It’s conceivable that a province may be no better off with equalization because of the program’s negative economic incentives. Put simply, equalization creates problems for provinces across the country—even recipient provinces—and it’s time Canadians demand reform.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Joel Emes

Senior Economist, Fraser Institute

Alberta

Provincial pension plan could boost retirement savings for Albertans

Published on September 11, 2025

Todayville

From the Fraser Institute

By Tegan Hill and Joel Emes

In 2026, Albertans may vote on whether or not to leave the Canada Pension Plan (CPP) for a provincial pension plan. While they should weigh the cost and benefits, one thing is clear—Albertans could boost their retirement savings under a provincial pension plan.

Compared to the rest of Canada, Alberta has relatively high rates of employment, higher average incomes and a younger population. Subsequently, Albertans collectively contribute more to the CPP than retirees in the province receive in total CPP payments.

Indeed, from 1981 to 2022 (the latest year of available data), Alberta workers paid 14.4 per cent (annually, on average) of total CPP contributions (typically from their paycheques) while retirees in the province received 10.0 per cent of the payments. That’s a net contribution of $53.6 billion from Albertans over the period.

Alberta’s demographic and income advantages also mean that if the province left the CPP, Albertans could pay lower contribution rates while still receiving the same retirement benefits under a provincial pension plan (in fact, the CPP Act requires that to leave CPP, a province must provide a comparable plan with comparable benefits). This would mean Albertans keep more of their money, which they can use to boost their private retirement savings (e.g. RRSPs or TFSAs).

According to one estimate, Albertans’ contribution rate could fall from 9.9 per cent (the current base CPP rate) to 5.85 per cent under a provincial pension plan. Under this scenario, a typical Albertan earning the median income ($50,000 in 2025) and contributing since age 18, would save $50,023 over their lifetime from paying a lower rate under provincial pension plan. Thanks to the power of compound interest, with a 7.1 per cent (average) nominal rate of return (based on a balanced portfolio of investments), those savings could grow to nearly $190,000 over the same worker’s lifetime.

Pair that amount with what you’d receive from the new provincial pension plan ($265,000) and you’d have $455,000 in retirement income (pre-tax)—nearly 72 per cent more than under the CPP alone.

To be clear, exactly how much you’d save depends on the specific contribution rate for the new provincial pension plan. We use 5.85 per cent in the above scenario, but estimates vary. But even if we assume a higher contribution rate, Albertan’s could still receive more in retirement with the provincial pension plan compared to the current CPP.

Consider the potential with a provincial pension contribution rate of 8.21 per cent. A typical Albertan, contributing since age 18, would generate $330,000 in pre-tax retirement income from the new provincial pension plan plus their private savings, which is nearly one quarter larger than they’d receive from the CPP alone (again, $265,000).

Albertans should consider the full costs and benefits of a provincial pension plan, but it’s clearly Albertans could benefit from higher retirement income due to increased private savings.