Event & Entertainment Contracting

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Information about Event & Entertainment Contracting
Business & Mgmt

Published on March 10, 2014

Author: KPTasch

Source: slideshare.net


For the moderately experienced activities board advisers who are involved in the creation or negotiation of event and entertainment contracts. Based on current trends in risk management and industry best practices, this session presents a core curriculum of event contracting to help individuals brush up on their knowledge or gain a substantial foothold in the often daunting task of executing a contract from an institution's perspective.

Materials for the presentation are available at http://www.slideshare.net/KPTasch/binder1-32139332

Event & Entertainment Contracting Syracuse University The Office of Student Activities Kevin Taschereau Assistant Director Student Activities Syracuse University PRESENTED BY: Matthew Scherr Program Coordinator Student Activities Syracuse University

• Participants will be able to articulate the key definitions associated with the event and entertainment contracting process as outlined. • Participants will know when and how to correctly utilize the provided Standard Documents and will be able to differentiate between the appropriate usages of the Standard House Rider and Standard Contract. • Participants will demonstrate the minimum standards of contracting acceptable by Syracuse University for event and entertainment contracting (including knowledge of the eight areas of concern in third party contracts, the process of contract execution, and the construction of the Complete Contract). • Participants will be able to identify the criteria for the requirement of insurance (specifically utilizing the levels one and two questionnaire) and will be able to articulate the correct usage of Syracuse University’s TULIP (Tenant User Liability Insurance Program) in high and low risk activities. • Participants will be able to demonstrate the proper usage of the Standard Offer Sheet (specifically modification of the sheet for specific uses) and will be able to describe special considerations when utilizing third party offers. Learning Outcomes:

Let’s look at the basics…

What’s an Offer? Formal, non-contractual, written request for a party to perform May also be referred to as a “bid” Not always required

What’s a Contract? A legally binding, formal obligation between two or more parties Usually involves an agreement to pay a specific sum of money in exchange for a performance or specific service

Underlined words in this presentation reference words that can be found in the definitions handout

•Research Performers •Contact Agency •Submit Bid Offer • Review • Edit • Approval Edit •Prepare for Routing •Submit •Sign Execute The Three Phases of the Contracting Process REPEAT REPEAT PHASE I PHASE II PHASE III

1. Research your performers 2. Draw up your offer letter 3. Send the offer to the artist/agency 4. Wait to hear back REPEAT AS NEEDED Offer PHASE I

1. Review the contract and make any edits as needed. 2. Create the Complete Contract by attaching any riders or house documents that you want to be included 3. Send to the artist/agency for their review and approval REPEAT AS NEEDED Edit PHASE II

1. Once returned, complete the Standard Contract Routing Form 2. Send the contract to the appropriate signatory for counter- signing 3. When you receive it back, make copies of the contract for the parties involved 4. Advance the performance and prepare for the event Execute PHASE III

The Standard Documents: 1. Standard Offer Sheet 2. Standard Contract 3. Standard House Rider 4. Standard Contract Routing Form

Phase I: Offer

When do you need an offer? • When working through an agency. • When a price is not explicitly set or it can be reasonably assumed as negotiable. • When you’re asked for one.

What happens when they have their own offer sheet? • Insist on using the Standard Offer Sheet • If they still require you to use their offer sheet: • Make edits to their sheet • When it is in agreement with the Standard Offer Sheet you may submit it to the artist/agency.

Who can make an offer? “Syracuse University students are authorized to inquire about a possible campus performance by an artist” (pg. 17, RSO Handbook) BUT Only authorized employees are allowed to submit an offer on behalf of the University, and only in the capacity of their job responsibilities.

USE CAUTION! Use caution when discussing potential performances over the phone or email. You can be held financially liable for contracts and agreements that are both written AND VERBAL in some states.

The Standard Offer Sheet: I. Engagement Information II. Additional Terms and Conditions III. Authorization

I. WHO? a) …is the offer going to? b) …is sending the offer? c) …is the offer for? II. WHAT? a) …is the billing? I.ENGAGEMENTINFO TheWho,What,When,WhereandWhy


I. WHO? a) …is the offer going to? b) …is sending the offer? c) …is the offer for? II. WHAT? a) …is the billing? b) …are the terms? (how much are you paying and what’s included?) I.ENGAGEMENTINFO TheWho,What,When,WhereandWhy

What are terms?

I.ENGAGEMENTINFO TheWho,What,When,WhereandWhy I. WHO? a) …is the offer going to? b) …is sending the offer? c) …is the offer for? II. WHAT? a) …is the billing? b) …are the terms? (how much are you paying and what’s included?) III. WHEN? a) …is the engagement? b) …are tickets going on sale?

IV. WHERE? a) …is the engagement? • Name of Venue • Address • Website V. WHY? a) …should they accept this offer? • Venue Capacity • Entrance Requirements • Age of Entrance • Ticket Pricing and Special Pricing • Production Specifics I.ENGAGEMENTINFO TheWho,What,When,WhereandWhy

II. ADDITIONAL TERMS AND CONDITIONS: Upfront information is the best practice • No Deposits • Safety Clauses • Merchandise Rates • Ticket Sales • Additional Acts • Hospitality Limitations • Insurance and Liability Requirements • Radius Clause…

THERADIUSCLAUSE Don’tbookanothershow!

III. AUTHORIZATION: The right to send the offer and how long it’s on the table • Purchaser & Signatory • Expiration Date • Rights to Offer • Non-binding Language

Final Considerations: If it doesn’t apply…don’t include it. Everything highlighted should be edited or modified before submission. If the agency or artist insists on using their own offer sheet, make the necessary changes for it to be in compliance with the Standard Offer Sheet.

Phase II: Edit

The Standard Contract: I. The Opening II. Insurance & Liability III. Event Specific Clauses IV. Execution

The Standard Contract I. The Opening:

The Standard Contract II. Insurance & Liability: 2. Each party shall, to the fullest extent permitted by law defend, indemnify and hold each other, as well as their respective agents, representatives, principals, employees, trustees, officers and directors, harmless from and against any and all liabilities, losses, damages, costs, expenses, causes of action, suits, judgments, and claims by or on behalf of any person, firm, corporation, entity or governmental authority if caused by the negligent or intentional act or omission of the indemnifying party, its agents, representatives, principals, employees, trustees, officers or directors. a. Producer shall procure and maintain, at their own expense, Commercial General Liability Insurance written on an occurrence basis with limits of $1,000,000 per occurrence and $2,000,000 aggregate to cover their responsibility referred to in Paragraph 2 above. b. The liability policy shall name Syracuse University as an additional insured with respect to the event. Coverage shall be on a primary and non-contributory basis ahead of any other insurance carried by the Purchaser. 3. The Producer shall file with the Purchaser, certificates evidencing the required insurance that names Syracuse University as an additional insured and indicates the insurance is primary and non-contributory with respect to the event.

Is insurance required? Level One Questions: 1. Is this a well known performer or artist? 2. Is the expected attendance over 1,000? 3. Will the event require a pat down and/or a barricade? 4. Is the performer incorporated? Level Two Questions: 1. Are protests normal with the performer or artist? 2. Is the topic of the performance controversial? 3. Are combative actions such as crowd surfing or mosh pits normal with this performance?

Is insurance required? If you answer “no” to the Level 1 questions: – You will most likely not need to require insurance If you answer “yes” to a Level 1 question but “no” to the Level 2 questions: – You will most likely want insurance, but it isn’t required If you answer “yes” to a Level 2 question: – You will want to require insurance

TULIP (Tenant User Liability Insurance Program) • Better known as events coverage • If the performer doesn’t have or can’t provide insurance • Covers both High and Low Risk Activities: Such as: sports, weddings, seminars and concerts • Cost is associated with the level of risk • Doesn’t cover hang gliding…

The Standard Contract III. Production Specific Clauses:

The Standard Contract IV. Contract Execution:

Working with 3rd Party Contracts

The 8 Areas of Concern in Third Party Contracts: 1. Indemnification 2. Liability and Insurance 3. Force Majeure 4. Severability 5. Scaling & Sales 6. Jurisdiction 7. Authority 8. Exhibits

The 8 Areas of Concern in Third Party Contracts: 1. Indemnification SEE HOUSE RIDER in·dem·ni·ty noun in-ˈdem-nə-tē : a promise to pay for the cost of possible damage, loss, or injury : a payment made to someone because of damage, loss, or injury

The 8 Areas of Concern in Third Party Contracts: 2. Insurance SEE HOUSE RIDER

The 8 Areas of Concern in Third Party Contracts: 3. Force Majeure

The 8 Areas of Concern in Third Party Contracts: 4. Severability 1st Method of Artist Cancellation: 2nd Method of Artist Cancellation: 3rd Method of Artist Cancellation:

The 8 Areas of Concern in Third Party Contracts: 5. Scaling & Sales Payment by ticket sales: Limitations on Free Tickets and Price

The Third Party Contract Areas of Concern: 6. Jurisdiction OR

The Third Party Contract Areas of Concern: 7. Authority

The Third Party Contract Areas of Concern: 8. Exhibits The Types of Exhibits: Hospitality Riders Production Riders Tech Riders and Input Lists Lighting, Rigging and Stage Plots The Standard House Rider

8.EXHIBITS HospitalityRiders THINGS TO WATCH OUT FOR • Cigarettes • Alcohol • Fireworks • Candles/Lighters/Incense • Brand Names • Awkward Requests • Random Requests • Things you don’t know about

8.EXHIBITS ProductionRiders

8.EXHIBITS House/VenueRider(s)

Marks you may see when editing event or entertainment contracts: Instruction: Example: Margin: Inserting Text to not He said “be or to be” Removing Text This is some other wording Keep Removed Text This is some other wording STET Initial Mark X ______ ______ ^ ^ ___ _______________ ___ _______________

X _____KPT _____RLF

The Minimal Standard of Contracting:

The Minimal Standards of Contracting: 1. The Complete Contract will be read through thoroughly. 2. There are no modifications to the Standard Document’s insurance language. 3. Syracuse University is referenced as the contracting party on all documents.

The Minimal Standards of Contracting: 4. Insurance and indemnification language has been removed from all third party contracts and exhibits. 5. No one is assigned personal liability. 6. The Comptroller’s name is under every signature line.

The Minimal Standards of Contracting: 7. All edits have signature marks with the appropriate number of lines. 8. Everything is legible with all edits preferably typed. 9. Everything is consistent across the Complete Contract.

The Minimal Standards of Contracting: 10. Control is always assigned to the House Rider. 11. Jurisdiction is always assign to Onondaga County, in the State of New York. 12. All income tax language is removed.

Constructing the Complete Contract: Standard Contract Routing Form Agency Cover Letter Third Party Contract Standard House Rider Standard Contract Other Exhibits: Hospitality Rider Tech Rider Plots Appropriate Tax Form

Phase III: Execute

Who can sign my contact? Here at Syracuse University, the signatory and executor is Rebecca L. Foote, Comptroller (Make sure you spell it correctly!)

Contract Routing within Syracuse University: 1. Fill out contact information. 2. Provide the name of the other parties and a brief description of the purpose/reason for the contract. 3. Certify that all items have been completed. 4. Attached the needed paperwork for processing. 5. Sign, date and submit.

The Process of Execution: The other Party has signed and Initialed the edits Fill out and attach a Standard Contract Routing Form 3rd Party Contracts or Standard Contracts with Edits Standard Contracts without Edits Send to the Risk Management Office Send to the Comptroller’s Office

For more information: Please visit the Risk Management Office’s website at: http://riskmanagement.syr.edu/

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