Contract cancellation clause: What to do when the concert is cancelled?

Until now we have been worried about getting the gig. But what if you or the promoter have to cancel the date? The first element of business is to make sure you have a good cancellation clause in your contract.

Let’s establish some basic concepts. The first, and most important, is that you have an entertainment attorney help you create your performance contract or at least review it for the proper inclusion of clauses relevant to the state you operate from. Each state may have specific legal elements that you need to be aware of and an entertainment attorney licensed to practice in your state will be able to inform you with knowledge. Second, I am not a lawyer. I have had all of my contracts reviewed by attorneys while booking my acts and the ones I offer in my book have been reviewed by various entertainment attorneys. With that established, I want to discuss cancellation clauses because they are an important tool to help protect yourself when special circumstances arise for you or the developer.

I have always included a cancellation clause in my contracts detailing under what circumstances my artist can cancel their contract to perform. I also include a clause outlining the penalties in the event the developer terminates the contract.

We are not discussing cancellation due to acts of God, such as disasters, accidents, death, illness, union strikes, etc. Those are covered in another clause called Force Majeure. Here, we care about cancellation for reasons other than the above.

The artist’s reasons for canceling fall into the category of career advancement. The promoter’s reasons for canceling fall into the category of insufficient funds. As we examine each one, think of times when you might have faced similar situations and had you included a comprehensive cancellation clause in your contract, things might have worked out differently.

Artist Career Advancement:

It is important to understand that you must use this clause with integrity, honesty and a sense of concern for the promoter’s situation while staying true to the career opportunities that present themselves to you. Your business integrity will be questioned if you start using your cancellation clause to cancel one date and accept another on a regular basis, just because the new gig pays a little better. That is not the way to use this clause. The following examples should give you some understanding.

1. Tour support act – You have the good fortune to get a space as a support act for a major artist or at least an artist whose reputation is much higher than yours. This opportunity is rare and has the potential to give you a career boost to a new level in your market. Any booking agent or club promoter understands this and they also realize that a tour like that can increase demand for your act, making you more valuable to them at a later date. When you approach the promoter to cancel, offer them a future date. To sweeten the pot, perhaps offer it with the same guarantee, but increase the percentage or the price of the ticket. After your support tour, having a better ticket price and/or a higher percentage will pay off for both of you. The biggest drawback to opening a full tour is that you will have to cancel more than one date if you have many dates booked in the future. Here, it is important to weigh the benefits of doing the support tour against the tour you have already booked. If you have great dates booked, at great rates, in areas where you normally do very well, make sure the tour you’re supporting really has the potential to make a difference in your future career.

2. Great media outreach opportunity – There are many syndicated radio shows, cable and network TV shows and movies that could help create national or international recognition for your act. Most of these shows schedule their guests well in advance. Canceling a date to perform at one of these media opportunities will leave the promoter with plenty of time to find someone to fill their date without too much trouble. Again, media promotion can cause increased demand for your act, benefiting both you and the promoter in the future.

3. Unique opening act for a major artist – Consider this carefully and re-weigh the benefits of making this date you have to cancel by. How much of a running boost could this do? Will it really be worth it to cancel your appointment for this once-in-a-lifetime opportunity at the headliner audience? Think of ways you can use this opportunity to make it worthwhile and worth the trouble of canceling.

Most promoters and club bookers have faced these situations many times. My experience has been that, given enough notice, they are happy about the act and adapt to the situation. To make the need to cancel as easy as possible, I will offer you the following clause to use or manipulate as your situation requires or your attorney deems necessary.

Buyer agrees that Artist shall have the right to cancel this engagement without liability upon written notice to Buyer no later than thirty (30) days prior to the date of performance, in the event Artist is requested to service an appearance. on the radio or television. , movie, or any career advancement opportunity. The Artist will attempt to reschedule the date with the Buyer for a mutually convenient time.

Thirty days is a standard number of days of use. You can increase the number of days or decrease it as you see fit or as your situation dictates. Thirty days gives the promoter time to find another act and do a proper promotion. Many promoters will sign the contract leaving this clause as it is. Some may cross it out entirely or change the number of days. Be prepared for those discussions. I’ve only had to use the clause a few times in my 20 years as a booking agent, but thank God it was in my contract when I needed it.

Promoter Insufficient Funds:

The promoter or owner of the club may, on occasion, find it necessary to cancel. The situations they may face are as follows.

1. Poor ticket sales – Most promoters do not cancel a program for this reason, although if a promoter is inexperienced or has not properly planned for back-up funds, they may cancel. I have known festival promoters to cancel an entire festival when advance ticket sales were below expectations based on the previous year’s sales.

2. Lack of sponsorship funds – When a promoter plans an event and the expected sponsorship falls through or a major sponsor unexpectedly withdraws their support, the promoter can cancel.

3. Denial of grants – In the nonprofit world, many performing arts centers and government agencies rely on grants to run programming. These promoters often write specific clauses in their contracts that protect them from liability in the event that they are denied financing.

Protecting yourself in these situations is a matter of planning and foresight. You must include the following clause or something similar in your contracts for such an occasion.

If Buyer has reason to cancel this Agreement, Artist must be notified in writing no later than thirty (30) days prior to this commitment. Any notice given less than thirty (30) days will require payment in full by Buyer to Artist as described in the Agreement paragraph (insert paragraph numbers describing your compensation), unless Artist agrees to waive any part of that payment or Buyer and Artist agree to reschedule the engagement for another mutually convenient time.

Certainly, there are other possible ways to write this clause and it is recommended to consult with your lawyer. I have met many artists who faced cancellation and had no recourse. They were not owed any of the contracted rate because they did not include any type of cancellation clause in their contract. Discuss this with your attorney and group and prepare for the variety of situations that often arise. It’s smart business and even smarter planning.