Cancel Outline: what damages were suffered by the organizers of the music festival

Entrance to the Moscow plant of automatic lines (“Mosal”)

On the evening of 2 July in Moscow was unexpectedly canceled an electronic music festival Outline. The event, which was held at the Moscow plant of automatic lines and special machines, the organizers have sold about 12 thousand tickets. However, on Saturday evening on the official website festivile there was a message: “Attention! The festival will not take place for reasons beyond the control of the organizers there. Money for tickets will be refunded”.

The blame for the failure of the Outline of the government of Moscow has put in the organizers. In an interview with “Interfax” the prefect of the southeastern administrative district (SEAD) of Moscow Andrey Tsybin has explained that the application for the festival was not filed within 30 days, as required by law, but only on Wednesday, June 29. Violation in the actions of the organizers provided the Prosecutor’s office: official representative of the Moscow Prosecutor’s office Olena Rossokhina reported by RBC that the event was not coordinated with the authorities of the city. The organizers also did not provide the conditions from the point of view of fire safety, said Rassohina.

The evening of July 4 on the page of the festival Facebook appeared an official statement of the organizers. From this it follows that “all necessary security measures” had been taken. “All the formalities associated with the organizational process and obtaining the necessary licenses and permits, we will be strictly followed for many years of experience and a long list of successful events”, — is told in the message. About causes of failure in the event the message doesn’t say.

The total losses of the organizers of the festival “the tens of millions of rubles”, said in an interview with RBC one of the participants of the cancelled event. RBC figured out what losses could be incurred by the organizers and their partners in connection with the sudden cancellation of the Outline.

Basic set

Event organizers surveyed by RBC, dispersed in accurate estimates. So, Victor Shkipin, Director of the electronic music festival Alfa Future People (AFP; will be held July 22-24, near Nizhny Novgorod), in an interview with RBC, estimated the total expenses of organizers for preparation Outline $1.5 million (96 million rubles). He proceeded from the stated scale of the event and the market price for the lease of a site, sound and lighting equipment, rigging stage, construction of installations, of wage workers, and estimates of royalties to artists.

Organization Outline the co-owner of Zeppelin (the company is engaged in holding of the largest music festivals and marketing activities, was the first contractor AFP) Dmitry Ashman in an interview with RBC estimated modest of Skipina, in 30-40 million rubles, of which in the event of cancellation of the festival organizers lose 80% of this amount (24-32 million rubles). In particular, the cost of technical support of such events (construction, equipment rental and videoprojection equipment) he estimated at 10-15 million RUB Ashman noted that normally the loss of this expenditure can reach up to 100%. However, the final amount depends on individual arrangements with the companies-distributors.

Organizers on Saturday announced that he will return the money for tickets purchased, on 4 July announced the date — July 15. As reported by “Kommersant”, the Outline has sold about 12 thousand tickets at the price from 1,5 thousand to 4 thousand. to Return, according to a source close to the organizers, will have the full cost, although approximately 10% of the price of each sold ticket’s already taken a different kind of intermediary, and it is non-returnable part. Thus, on the comeback organizers can lose tens of millions of rubles, based on the fact that some of the tickets were given to sponsors of the event.

The costs of the artists on the Outline — not the biggest expenditure item, said Skipin. “They had a very decent performers, but not the most expensive,” he says. By Skipanim not agree DJ and organizer of the festivals Ultra Music Festival (UMF) and Technopolis Viktor Strogonov. According to him, the costs of inviting the artists to festivals such proportions usually are about 50% of all costs. According to Strogonova, work with foreign artists in such cases is conducted on 100% prepayment. Moreover, the amount includes not only the fee but also payment of flights, accommodation and visa.

On six stages Outline was supposed to be 67 artists, over 40 of which were foreigners. According to the source RBC, close to the organizers Outline the costs of making business visas and flight artists are in the order of €1 thousand each. Also, the organizers have to pay fees ranging from €2 up to 10 thousand, the Interlocutor of RBC stressed that the musicians can return part of the amount in the event if the event is cancelled in advance. In the case of Outline most of the artists have already arrived in Moscow at the time of cancellation of the festival. Thus, only the loss on payments to foreign performers can reach more than 16 million rubles. with an average “sticker price” of €5-6 thousand

Prepayment creators Outline could negotiate with local artists, fees ranging from 5 thousand rubles to 300 thousand rubles, said a source close to the organizers. The DJ Timur Omar, who was to speak on the Outline noted in a conversation with RBC that at these festivals the local performers, in contrast to the foreign, receive a fee after the performance. He also reported that after the abolition of Outline foreign artists were able to perform at other venues. For example, at the site of the Institute “Arrow” was made by French DJ Sasha Mambo. However, for the DJ area is paid to the organizers Outline “symbolic” €500, told RBC a source close to the organizers of the festival. So to return at least part of the funds due to the “migration” of artists in other scenes, the creators Outline unlikely.

Money partners

The revenues of the events usually consists of three components — the sale of tickets, food and beverages, as well as money from sponsors, explains Skipin. “The food, of course, the organizers no longer earn money for the return tickets, leaving only sponsorship. If you have to return them, the resulting losses will be more severe” — said the Director of Alfa Future People. He points out that “in any agreement” prescribes the possibility of a return of sponsorship money in case of cancellation of the event. “Everything will depend on whether the organizers can prove that the cancellation festivals occurred for independent reasons, or it’s their fault,” says Skipin.

General sponsor of the festival Outline was the operator T2 RTK holding (Tele2). A company representative declined to comment. A source familiar with the organizers of the festival, estimated costs for the sponsorship of such events is about 10 million rubles, but the company has not suffered “direct losses” because were postpaid. The representative of another sponsor — Heineken — in conversation with RBC said that his company is not “injured party”. Information about how much the company could boutis partnership with the festival, he refused to name.

In addition to mobile operator, sponsored the Outline was announced brand of non-alcoholic energy drink Burn (distributor in Russia is bottler Coca-Cola HBC). The cost of Coca-Cola HBC was approximately 500 thousand rubles, these funds went to advertising production and logistics organization, told RBC a source familiar with the terms and conditions of cooperation. At the same time the owner of the Burn (amerykaska Monster Beverage Corporation), which is responsible for the global marketing brand promotion, no sponsorship costs incurred as the cooperation took place on postpaid conditions, the source added.

However, if the sponsors, the organizers agreed mainly on the postpaid system, with partners — not always. For example, the main information partner of the festival — “Daily Poster” — has lost about 100 thousand RUB, the Company created to Outline an installation that meets the recycle concept of the festival, told RBC chief editor Ekaterina Dementieva. According to her, all the costs of actually building and lighting was on the organizer of the festival, a “Daily Poster” paid interior decorations, goods, fans and the salary of sellers. According to Dementieva, “Bill Daily” now is interested, rather, in the dismantling and shipping of the created object, rather than to compensation of costs from the organizers.

My installation on a prepared Outline and draft of “Dump”. His co-founder Irina Barinskaja told RBC that at the festival they invited one of the participants, not the organizers. To create installations of several art objects, and given the logistics of the “Dumps” left 150 thousand rubles. However, Baranska clarified that part in the Outline for the “Dump” was a private investment: no payments from the organizers are not supposed to, they only paid the carriage in one direction and part of the materials. Now resolved with the export of art objects from the territory of the plant: who will bear these costs — the organizer or Landfill — is not yet clear, says Barinskaja.

The first festival Outline held in the Russian capital in 2014. In 2015 it was held on the territory of Karacharovsky plant in Moscow.

With the participation of Elizabeth Arkhangelsky, Irina Uzbekova, Alena Sukharevskaya and Elizabeth focht