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well I want to talk primarily about bars

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Live Music Venues and touring because it

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does seem as if you guys are gonna be on

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the last of the list you're even going

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to be behind live sports because life

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sports they can hold them in empty

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stadiums but it really doesn't make

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sense to hold live music in an empty

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venue so anyway yeah talk about the the

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challenges that you guys are facing

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being a company that has so many Live

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Music Venues bars etc and how you're

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going to be able to survive this because

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mayor Garcetti is on record saying we

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are a year away just I know you guys are

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outside of Los Angeles also but just to

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talk about LA for a second that yeah

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they're a year away from those type of

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places being able to be open yeah look

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you know in fact entertainment we're a

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little bit of a different animal like

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you said we're not just in California

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thankfully but all my hospitality is all

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our bars and restaurants let's disco

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bars and restaurants for example you

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know we have some other projects in

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other states going we have some venues

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that have restaurant capability and

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connection to restaurants but yeah that

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I feel like I don't feel like I know the

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bar and restaurant side at least at

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minimum we're able to do takeout and

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delivery now that isn't that's not doing

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anything but keeping us relevant you

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know that people still see our name out

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there on socials and that we're in the

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media and they're talking about and

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we're keeping our customers happy and

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I'm keeping a couple people at work in

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in most of our bars and restaurants but

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really when I say a couple people you're

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talking about a GM a chef and maybe one

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backup person that's in there to help

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with trap or help pick up you know pick

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up phone calls but we're only all of us

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surviving because we're not paying rent

47
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you know that's that's the reality is if

48
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we have to start paying rent it's over

49
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and we can get into the PPP program in

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that whole world but in terms of I go to

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live music you know we own the Regent

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theater downtown we're partners on that

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you know we're the Desert Days Festival

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that's over

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my my conversations with other leaders

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in the industry and that's a commune Oh

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a constant conversation from you know

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the CEOs of Live Nation across the board

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is you know we're looking at like 2021

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which is mind-blowing

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because we're in we're in May you know

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what it means so it's like and there's

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so many reasons for that and some I

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agree with some I don't it's you know

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giving us a scale of down capacity Jim

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is not you know if you have a thousand

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cap room and tell me you know when you

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want hit me with questions let me know

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but you know we have a thousand cap room

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if the city says okay

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you've met all these stipulations you've

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got the you know the thermal thermal

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recognition on temperatures all your

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staff is gloved you've got the

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separations you're sanitizing UV light

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whatever all the bells and whistles are

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you have a thousand cap room you can't

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open it 250 it's not even worth it at

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that point and and you know is there

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even a band that's going to come through

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and play at that cap they have to be

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local right know touring band is coming

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through unless they live in California

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California's Pacific and then it's like

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is the band even going to get together

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are the five guys or girls going to even

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play together yeah yeah let's let's take

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the various entities in order and talk

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about each one I think it's gonna be the

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best way to do this so you've got the

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bar restaurants that I want to talk

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about and then you've got these a

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smaller size music venues and then you

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get the large amphitheater festival type

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ones so staying on the smaller one that

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you're talking about a thousand seat

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place even if they said 25% capacity my

98
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first question would be well how do you

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monitor that inside of your room I mean

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when the band takes the stage everybody

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wants to rush toward the front of the

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stage so even if you've got a thousand

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seat capacity or standing capacity and

104
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and you're limiting yourself to 25% are

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you gonna have to put X's down on the

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floor everywhere as to where I stand

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I mean it's a

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a fantastic point and we talked about it

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this year as it related to big outdoor

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shows first which was are we gonna have

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to go out there with spray paint make a

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Nile and then make a box of like her six

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cuz you know two to six is there gonna

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be family members I wish I had the

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answer to that right now I would I would

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assume that we would have to separate

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and do that I mean or we kind of do it

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like we do when we have certain venues

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where you have to keep separation of

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under 21 and over 21 but even that

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they're still grouped together it's a

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kind look we're talking about it but I

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don't know how to do it really that it

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is 100% that you're not going to get

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coronavirus Kovan 19 how do you you know

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like I said if we do the UV lights and

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everybody's got masks on and we're doing

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you know we're spraying her and we've

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checked temperatures then my assumption

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would be okay the 250 people in there

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should be able to possibly congregate as

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it is but maybe not I mean then and then

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you've got the issue even if they could

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as you set a profitability because your

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lease rate is set at a level that

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expects this place is going to be busy

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if you were doing 25 percent of your

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business you're ain't going to be making

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money so no 100 percent and that's the

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conversation that we are having with all

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our landlords - it's okay the leasable

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space that we started with here call it

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the 10,000 square feet at one of our

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venues downtown for that thousand cap is

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no longer usable space I cannot pay that

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usable space rate anymore I can only pay

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what that is and I can't even pay that

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because I don't know what that return is

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we used to be able to run pro formas

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based on all of these markers that none

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of us can do anymore

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because let's say we're gonna say it's

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gonna be 250 well one is the band's

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gonna have to be in a door deal I can't

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pay you a guarantee because I don't care

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that you used to bring in finer people

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now I don't even know if you're gonna

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bring in a hundred and do I know 250

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people are even going to show up at that

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capacity it could be 75 and what's the

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drinking per head at 75 even at 10 bucks

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a head and no there's there's really I

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mean even 50% even 50% capacity is not

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gonna pencil out right though the way

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most of the way you run venues and let's

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just let's talk a thousand cap when

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we're running these pro formas and how

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we've been doing it for 30 years is

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reality is you know first if you make

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most your money on booze as it is right

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you're not making a lot of money on the

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ticket you're not making a lot of money

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on the fees it's really alcohol-related

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and that's got that's gotten sort of

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making money on the door back in the day

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used to be a better figure now if you

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make thirty percent of the door net

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you're very lucky but when we look at

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venues we base it usually on four to

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five winning shows per month so the 30

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days in a month four to five shows that

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are at a thousand cap are gonna cover

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your nut the rest is gravy and you may

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only do 12 shows a month and the reality

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is most shows are only 50 cat 50%

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capacity anyway you're not selling out

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those shows and you've got private

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events dance nights or mitzvahs weddings

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all those other things that are part of

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it you cannot do a thousand Cab venue or

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any venue at a scaled-down capacity

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because all the other pieces that are

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around it will not work anymore and

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who's doing who's doing private events I

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mean that's the other not permitted

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business right not permitted right now

197
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so how do you what does that negotiation

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look like with the landlord because

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right now you can't do anything we know

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that at some point you're going to be

201
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allowed to do something that's probably

202
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going to be half capacity and then at

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some point none of us can imagine it

204
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right now unfortunately at some point

205
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you're gonna be back to business as

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usual so multiple ways most of the

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landlords we've had across the country

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and again we're a bigger company in that

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in that realm in that we have been some

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of our landlords we've had for 20 years

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you know so the first thing I did out

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the gate was essentially as I saw this

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happen and I knew we'd be shut down who

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knew at this point we thought we'd be

215
00:08:56,460 --> 00:08:55,920
like 30 days right 60 days but as soon

216
00:08:58,740 --> 00:08:56,470
as we saw

217
00:09:02,400 --> 00:08:58,750
start to like tip a little bit we just

218
00:09:05,100 --> 00:09:02,410
sent them immediate like here's how much

219
00:09:08,160 --> 00:09:05,110
rent we have paid over the decade here's

220
00:09:11,160 --> 00:09:08,170
how much money you have made we are not

221
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going to pay rent at minimum for 90 days

222
00:09:15,540 --> 00:09:13,210
it's just not gonna happen plus all

223
00:09:16,980 --> 00:09:15,550
these states said you cannot even evict

224
00:09:19,140 --> 00:09:16,990
and you cannot even come after us for

225
00:09:21,030 --> 00:09:19,150
the 90 days right so that's where we

226
00:09:23,400 --> 00:09:21,040
went at it first like we knew okay I got

227
00:09:25,110 --> 00:09:23,410
90 days they can't do anything and I

228
00:09:26,910 --> 00:09:25,120
would say almost every landlord we had

229
00:09:29,550 --> 00:09:26,920
was like look we understand it's

230
00:09:31,470 --> 00:09:29,560
nationally you got shut down you're not

231
00:09:34,050 --> 00:09:31,480
a deadbeat tenant you've always paid on

232
00:09:36,570 --> 00:09:34,060
time and you've paid us X amount of

233
00:09:39,000 --> 00:09:36,580
dollar so they get it the next phase is

234
00:09:40,710 --> 00:09:39,010
gonna be the rough phase more so in the

235
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venue's in the bars restaurants it's

236
00:09:51,740 --> 00:09:46,660
like hey landlord I'm sorry we're not

237
00:09:53,010 --> 00:09:51,750
open until 2021 we're not paying so

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either

239
00:09:58,830 --> 00:09:55,810
you're willing to sit or you can come

240
00:10:02,430 --> 00:09:58,840
get the keys and good luck

241
00:10:05,190 --> 00:10:02,440
excuse my language I'm I have no fear of

242
00:10:07,200 --> 00:10:05,200
that honestly and that's my I can see

243
00:10:08,640 --> 00:10:07,210
mom and pop organizations where they're

244
00:10:10,200 --> 00:10:08,650
like oh my god the landlord's gonna take

245
00:10:11,960 --> 00:10:10,210
it what do you what is this landlord

246
00:10:15,030 --> 00:10:11,970
gonna do with that commercial space

247
00:10:16,740 --> 00:10:15,040
10,000 20,000 30,000 square feet if you

248
00:10:20,040 --> 00:10:16,750
really want to take it away from us and

249
00:10:22,290 --> 00:10:20,050
you want to boot us out you're gonna sit

250
00:10:25,530 --> 00:10:22,300
there six months at minimum dead and

251
00:10:27,240 --> 00:10:25,540
then who's coming to pay it at any lease

252
00:10:29,970 --> 00:10:27,250
rate that's viable and who's in our

253
00:10:32,520 --> 00:10:29,980
industry that's going to do that so I'm

254
00:10:36,090 --> 00:10:32,530
not here to screw our landlords my goal

255
00:10:39,440 --> 00:10:36,100
is let's take this year add another year

256
00:10:41,760 --> 00:10:39,450
onto our lease right one just push it I

257
00:10:44,040 --> 00:10:41,770
got a five-year lease left or three

258
00:10:48,060 --> 00:10:44,050
years make it four years because I

259
00:10:49,650 --> 00:10:48,070
certainly cannot pay you when I open the

260
00:10:51,300 --> 00:10:49,660
losses we've taken or will be closed

261
00:10:55,890 --> 00:10:51,310
immediately I certainly can't pay back

262
00:10:59,130 --> 00:10:55,900
the PPP I'm talking over over all right

263
00:11:00,660 --> 00:10:59,140
I want to be fair with my landlords I

264
00:11:02,610 --> 00:11:00,670
understand they're getting screwed to is

265
00:11:05,340 --> 00:11:02,620
I'm not here to bash the landlords like

266
00:11:06,540 --> 00:11:05,350
they're there unless their banks unless

267
00:11:08,520 --> 00:11:06,550
you're a private owner and you have a

268
00:11:10,410 --> 00:11:08,530
built you know millions of dollars and

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it doesn't bother you

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and you know hopefully your banks are

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working with you otherwise you know my

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my hope is that the government backs the

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insurance companies and we can trigger

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our loss of revenue coverage you know

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just like we wouldn't a fire or anything

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else we had a big fire in Boise two

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years ago called burnt almost you know

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huge fire we had loss of revenue

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coverage that triggered but until the

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insurance companies never gonna Trevor

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trigger pandemic ever right yeah let's

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talk about that real quick cuz that was

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on my list of cover with you which is

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typically called business interruption

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insurance and there's been some talk

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about it but it's my understanding that

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virtually every policy out there has an

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exclusion for pandemics I heard

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somewhere that kind of started with the

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Spanish flu that they started doing but

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I'm sure there was some major pandemic

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that caused anything okay we're gonna be

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wiped out if we cover pandemics so they

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all write that out now apparently there

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are some court challenges to it trying

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to argue that well gee it's not the

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pandemic it's not the reason we're

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closed it's because the government

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ordered us to be closed it's exact thats

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the argument the are even right now is

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even when we're filing we're not the

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insurance only wait you're fine for