Music Festival Rights

[The Digital Channel]

Following the disappointment of my first post and working on the one feedback I got, I would detail the business opportunity...worth a try

My company has been offered rights to a 2 day music festival in the UK, which is planned to be staged in AUG 2007.

The event will be staged over two days, with 15,000 tickets on sale each day. My company has been involved with the event organisers for the last 18 months, supporting and developing the project from a digital marketing and advertising perspective.

We have also developed a full e-ticket service which will allow streamed access via online and mobile for those who can’t make the event.
The event organisers have secured the venue as well as local government agreement as well as passing the health and safety requirements. They have also got provisional Headline acts and a great support line up.

The event was due to go ahead last year, however the organisers financial partner let them down. They then approached me and offered a rights package on the festival, which would include some ownership of digital media, rights to represent the festival’s advertising and marketing media and possibly a % of ticket sales.

We tested a couple of digital marketing campaigns which to date has generated a database of 4878 “ticket enquires” and around 15,000 “e-ticket enquires” The event organisers also have a large social network on myspace and facebook, which has generated a marketing database of around 75,000 music fans and bands.
T
he event has direct costs of around £325,000 to put on and is projected to generate around £790,000 in ticket sales and online sponsorship. There is also the digital revenue, generated from e-ticket sales, content and mobile downloads as well as advertising and sponsorship.
The organisers have also secured the venue for a further 4 years, upon a successful first event and the venue could increase capacity to 30,000 per day.

The organisers are hoping that by selling some of their rights to us, they can make the deposits and down payments required to allow tickets to go on sale from which the other costs can be taken.
We discussed the figures and are looking at a minimum of £20K-£45K to ensure the event goes ahead.

Unfortunately my company is only small and we got caught in the middle of a client buy-out and liquidation which impacted greatly on our cashflow and profitability. The company also has limited paper trading history (£38K in its first year) and my credit history and current income stops me from traditional bank lending.

I have been pulling my hair out for the last 4 weeks and thought I would give forums ago to find out if the opportunity is as good as I think it is. If it can get past the cynical forum lurkers maybe someone could see an opportunity)))

[Brian Turner]

It sounds like a slightly risky but otherwise interesting project - the only query is that for a project suggesting £325k in costs, why do you specifically require around £5-10kk investment??

[The Digital Channel]

quote=Brian Turner;115302]It sounds like a slightly risky but otherwise interesting project - the only query is that for a project suggesting £325k in costs, why do you specifically require around £5-10kk investment??[/quote]

There is always risk in an investment)), but I think the ground work and stage of this has reduced the risk levels significantly. With regards the investment level, I detailed that the festival requires £20K -£45K investment, not £5K-£10K.

Once initial costs are covered, the ticket revenue and sponsorship will allow outstanding costs (£300Kish) to be covered over the run up to the event (11 months.)

The £5k you mention may be in relation to my other post, which although connected is independent to this project, i.e either or both opportunities can operate as standalone companies.

We already have additional companies ready for incorporation.

Hope that makes sence.....

[Brian Turner]

Ah, apologies for mixing up the projects
.