Electric Picnic Promoters Received Insurance Payout Following Cancellation of 2020 Event
The promoters of the Electric Picnic music festival received an insurance payout following the cancellation of the 2020 event due to the COVID-19 pandemic.
As reported by The Irish Times, MCD managing director of MCD Denis Desmond, who operates Electric Picnic with Live Nation, said that last year’s music festival was covered by a global Live Nation insurance policy, and, "we had cover and we have had no issues getting payment."
Desmond reportedly made the above comments as new accounts for the Live Nation controlled Festival Republic Ltd in the UK revealed that it received a COVID related insurance payout of £13.27 million (€15.52 million) for 2020.
Desmond, who is a director and co-owner of Festival Republic through LN Gaiety Investments, reportedly said that the insurance payment to Festival Republic related to insurance for 2020 events cancelled due to the COVID-19 pandemic, and that the 2021 Electric Picnic festival, which was cancelled last month after Laois County Council refused to grant it a licence, is not covered by insurance "as insurers as of January of last year decided that they wouldn’t give pandemic cover."
Festival Republic Revenues And Pre-Tax Profit
Revenues at Festival Republic, which operates the Leeds and Reading music festivals in the UKalong with many others, reportedly decreased by 98.7% from £56.42 million to £732,681 last year, and the company reportedly recorded a pre-tax profit of £8.42 million after recording "other operating income" of £14 million, which was reportedly made up of the insurance payout of £13.27 million and £738,862 in payments from the UK government's Coronavirus Job Retention Scheme.
The £8.42 million pre-tax profit was reportedly a 16% increase on the pre-tax profit of £7.25 million that was reportedly recorded for 2019.
1.6m People Attended Festivals In The UK During The Summer
Desmond reportedly said that 1.6 million people attended the company’s festivals in the UK between July 19 and September 19, and, "We are very happy that there was no exponential spike in cases or hospitalisations. That is a fact."
The 1.6 million attendance figure reportedly includes 90,000 people per day each attending Reading and Leeds music festivals
"Hopeful" For Ireland
Desmond reportedly said, "We had a very, very good summer festival-wise in the UK.
"I am hopeful that we will reopen at full capacity in Ireland - it is phenomenal that we had a 90% take up on the vaccines here.
"You look at the rest of the world - at the UK, at the US - they are open for business and I sincerely hope that our industry reopens at full capacity from October 22nd."
"Looking Forward To Getting Back To Work In Ireland"
Desmond reportedly said, "We are looking forward to getting back to work in Ireland. It is now 532 days since we have done a concert in Ireland at full capacity."
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