Achi news desk-
One of my Business Voice columns in April examined the case for introducing a ticket levy on the price of all major stadium and arena gigs in the UK. The Music Venue Trust, which is behind the proposal, said the money raised by the levy would be used to help the many struggling small shops at the bottom of the food chain. the location.
And they certainly need help, given the precarious financial position many grassroots venues find themselves in. A survey by MVT said that while the remaining 835 members of the Music Venues Alliance staged more than 187,000 events in 2023, generating over £500m in revenue, those venues made a profit of just £2.5m – a margin of 0.5 %.
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As my column pointed out, the levy proposal has been welcomed by industry figures in Scotland. The Scottish Association of Night Time Industries told The Herald it was “absolutely heartened” to endorse the “call for a support mechanism for businesses grappling with rising operational costs”, stating: “It cannot be overstated the state of independent and grassroots settings in this crisis.”
With 123 venues closing in the UK last year, including the Bath Moles and the Chameleon in Nottingham, and continuing to close at a rate of two a week, talk of a crisis is not overstated.
At stake are venues that play an important role in the economic ecosystems of towns and cities and, from an artistic perspective, provide essential stepping stones for bands.
Grassroots venues that offer the first opportunities for bands and young singers to play in front of an audience and hone their craft. But where would such actions start if these outlets disappeared?
The idea of raising a levy on grassroots venues was also welcomed by one of the best known names in the music scene in Glasgow. Donald MacLeod, managing director of Hold Fast Entertainment, owner of the Garage and Cathouse venues in Glasgow and a promoter of CPL, told The Herald he supported the idea of a levy in principle.
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However, he said any levy would have to be backed up by legislation and, echoing the NTIA, said several key questions would have to be answered first.
Mr MacLeod said: “It would need to be placed in tablets of stone, and who has that power? Is it the UK or Scottish Government? Can it be a devolved issue?
“The French model, with 3.8% of gross ticket sales going into a fund, is possibly the best model. But who is going to govern and administer that fund? And what will the application process be like?”
Another of my columns in April dealt with a related theme, with the article expressing support for plans by Event Campus Scotland to build a new, larger conference center on the banks of the Clyde. SEC chief executive Peter Duthie said building such a facility next to the OVO Hydro and SEC Hydro music venues and the existing SEC Center conference venue would allow the resort to attract “massive events”.
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My piece acknowledged that Mr Duthie’s call for public investment in the project could meet with resistance but agreed with his claim that the project could start paying for itself quickly.
The piece also made the point that the SEC has the pedigree to make it work.
“If Mr. Duthie and the SEC did not have a track record of delivering large infrastructure projects, it would be easy to dismiss such a bold claim,” the column noted.
“But the fact is that the SEC has shown its name very clearly in this area, considering the exceptional impact that the OVO Hydro has had on the city over the last decade.
“The Hydro is now arguably the most prominent live music venue in Scotland, regularly attracting shows from the biggest names in the global entertainment industry.”
This article was first published in the Herald’s Business Headquarters Monthly supplement
