In light of the coronavirus pandemic and associated self-quarantine and social distancing measures being taken by citizens nationwide, over one thousand music venues in the U.S. face a dire risk of being forced to close. These venues are in such a vulnerable position due to a complete absence of federal aid.
It has been approximately two months since, among other businesses/public gathering venues, live music shut down across the country in light of the coronavirus pandemic and national and statewide stay-at-home orders and recommendations. The National Independent Venue Association (NIVA) says the majority of its member venues do not have enough cash on hand to survive beyond six months without federal relief, which they are and have not received.
Dayna Frank, board president of the newly formed NIVA, referred to the situation as an “existential crisis.” Per an interview with Rolling Stone, NIVA is a coalition of independent music venues without major backing across the country who recently banded together in an effort to obtain federal funding to stay afloat during this period of social distancing in which their venues remain empty and plunge further into the red on a nightly basis. NIVA told Rolling Stone 90 percent of its 1,300 venues did not have enough cash on hand to survive more than six months without federal intervention, with 55 percent saying they would not be able to make it more than three months.
Rolling Stone also interviewed Frank, president and CEO of Minneapolis-based live music company First Avenue Productions. Frank discussed how longer term shutdowns could ultimately affect the business.
“We were prepared to be down for three months. Six months,” he said. “But now, is it starting to look like 12 months, 18 months? That’s when the existential crisis ensues.”
Frank explained that independent venues have personal guarantees against any debt they carry, since they lack corporate backing. As such, if venues are unable to pay down their debt, owners’ personal assets can be taken. He cited roughly six months from now as being a likely point in time in which many venues would fully feel that squeeze, and cited it as a dire reason for seeking federal aid.
“That’s why we are focused on getting federal funding for our businesses that are shuttered with absolutely no way to have income,” he said. “If we can’t get venues the type of support they need until they can start operating at full capacity, where are the artists going to play? They’re going to get on a bus and have no place to pull over to.”
NIVA and venues like the Troubadour at risk of shutting down join growing list of artists, festivals and other elements of the industry as a whole experiencing drastic changes and impacts due to the coronavirus. Bands like The Lumineers and festivals such as the Newport Folk and Jazz festivals continue to postpone or outright cancel on a seemingly daily basis.
Photo Credit: Owen Ela
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