The Evening of the Year 4, organized by 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 roosters. 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 organization 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 the performance contracts the causes of cancellation and the derived responsibilities. “The legal battle will be won by the one who has the best contractual protection,” says Paula Sánchez, head of legal specialising in live music at Sympahty for the Lawyer. The expert insists that the conditions of this type of event, including the provisions on possible causes of cancellation, must be negotiated months in advance (sometimes up to a year before the event), always put in writing and reviewed by lawyers. “In the event that there is no signed contract, it will be necessary to look at the emails and even the WhatsApp messages exchanged by the teams of each of the parties,” explains the lawyer, who recognises that this route can be a source of conflict. The most common causes of cancellation that are included in these contracts are, as pointed out by Iban Diez, partner at Menta Legal, the justified non-appearance of the artist due to death or illness; causes of force majeure; serious disturbances that prevent the event from taking place in a normal and peaceful manner; 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 non-appearance due to illness was the cause of 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 world tour in 2017 due to mental health problems. These figures were reached because the claims also included ticket refunds, travel and accommodation expenses for fans and the loss of profits of 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 will have to return the amount 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 the 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. Among the possible causes of cancellation attributable to the promoter are that the event is not economically profitable, that he is not able to carry it out, that his suppliers have breached his obligations, that he has not obtained the relevant administrative licenses or that he fails to comply 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 technical rider (technical needs of the show), the performance schedules, the suitability of the artist's safety in the venue or meteorological causes.» Cancellations due to inclement weather, natural disasters or other unforeseeable and unavoidable circumstances are usually assumed by the organizer. As Iban Diez points out, in these cases, the artist would only be exempt from paying if the contract includes a specific clause on force majeure. Something that, according to Paula Sánchez, is quite common and that turns the tables. “In this case, the artist must return 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. In addition, it is increasingly common, according to Ochoa, 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 in the planning, preparation and execution of the insured event or show, if it is cancelled or postponed,” he explains. Follow all the information on Economy and Business on Facebook and Xor in our weekly newsletter