Bass, Berry & Sims attorney Tim Browne authored an article for the Nashville Business Journal examining the lasting effects of COVID-19 on the sports and entertainment industries.
Just as commercial agreements were adjusted to account for the greater threat of event interruption and enhanced security requirements in the wake of 9/11, the COVID-19 pandemic will force sports and entertainment companies to account for the very real risk that an entire season, tour or festival can be immediately halted.
“‘Force majeure’ provisions will need to be permanently adjusted, and given the extended nature of a pandemic (as well as the uncertainty as to when conditions might improve), contracts will need to directly address such issues as the mechanics of event cancellations and customer refunds, ‘make good’ benefits to account for potential lost value for sponsors and the potential imposition of government regulations,” said Tim.
Additionally, since many events are still occurring but with severely limited attendance, agreements with sponsors will likely need to address the fact that there are fewer “eyes” on a sponsor’s signage and some in-venue activations for fans are not taking place altogether.
The full article, “COVID-19’s Lasting Impact on Sports and Entertainment,” was published January 22 by the Nashville Business Journal and is available online.