European event promoter DEAG has reassured its investors that it has insurance cover for Coronavirus-related cancellations – including those where local authorities force the closure of its shows.
This puts DEAG, which turns over more than $200m a year, in stark contrast to Austin, Texas-based South By Southwest (SXSW), which confirmed on Friday (March 6) that it had no insurance cover for the cancellation of its 2020 event.
SXSW’s owners admitted that they did not have event insurance for “bacterial infections, communicable diseases, viruses and pandemics”. They also confirmed that, despite the fact SXSW’s closure was triggered by Austin city representatives declaring a “local state of disaster”, this did not affect the event’s non-insured status.
Berlin-headquartered DEAG is currently promoting upcoming shows by the likes of Iron Maiden, Judas Priest, KISS and The Black Crowes.
Today (March 9), publicly-traded DEAG has moved to reinsure its investors following an announcement from Germany’s Federal Minister of Health, Jens Spahn, stating that major events in the market with more than 1,000 participants could be cancelled.
“In the case [of Force Majeur closures], DEAG has full insurance coverage. Also events canceled by the authorities due to COVID-19 are insured.”
DEAG company statement
“DEAG is committed to its customers and their health but also to their enthusiasm for the respective events,” it said in a statement. “DEAG sees the final decision on the implementation of events with the responsible authorities and at the same time respects the decision of every visitor to take part in major events.
“For the time being, all events will therefore be carried out according to scheduled dates regardless of the number of participants.”
On the matter of insurance, DEAG added: “Any cancellations of events by a ‘high hand’ (force majeur) will of course be implemented immediately. In this case, DEAG has full insurance coverage. Also events canceled by the authorities due to COVID-19 are insured.”
Showing evidence of Coronavirus-related damage, the stock price of DEAG, which trades on the Frankfurt Stock Exchange, fell 23.0% between the trading close of Friday, February 21 (€6.18) and Friday, March 6 (€4.76).
This morning (March 9) at the time of writing, affected by an oil-related global stock market downturn, DEAG’s share price is down double digits again to €4.01 (see below).
As well as promoting concerts in multiple regions including Germany, the UK and Switzerland, DEAG owns the MyTicket platform.
Last year the company acquired control in a string of local promoters including C2 Concerts, in which it took a 51% stake.
In response to fears around COVID-19, DEAG further stated today (March 9): “On the basis of the recommendations of the Robert Koch Institute (RKI) and in coordination with the responsible authorities, DEAG will take and implement the necessary precautions for the safe and orderly running of all events.”
DEAG promotes over 4,000 concerts and events a year and currently sells more than 5 million tickets, of which a “steadily increasing share” is sold via MyTicket.Music Business Worldwide
