It is a model some ticketing companies use and it is not one Eccles Entertainment co-founder Brent Eccles is keen on.
“They’ve sold their services based on the fact that the promoter can get their money, and we hope that if something goes wrong that they are cashed up well enough to be able to refund the money,” he says.
There is no law saying organisers have to sell tickets to their event through a ticketing company, but Eccles says many do for a variety of reasons, including promotional opportunities. In many cases promoters have no choice because venues insist their contracted ticketers are part of the package.
“Spark Arena is a good example, you have to use Ticketmaster, no ifs or buts ... [it’s] so they can have a consistency as far as how their venue works and how their seating works.”
For Eccles it is also a matter of safety for him and ticket buyers. He uses companies that hold the money in a trust, releasing the funds only after the event has taken place.
“I know the money is safe, I know there’s a good system in place to sell the tickets, I know it’s not going to break down.
“The promoter probably pays a bit and the ticket buyer pays a bit to make sure the system works and I think it’s worth it,” he says.
In the case of Juicy Fest and Timeless Summer, ticketing company Ticket Fairy did not hold on to the money and now with both companies in liquidation, Eccles says the chances of ticketholders getting their money back are slim.
He worries about the impact it will have on the entertainment industry in terms of consumer trust and says if nothing changes, it’s only a matter of time before it happens again.
“We’re trying to get the Government to look at this situation and go, ‘you’ve got to do something about this, this is crazy’.
“There’s so much money involved, millions and millions of dollars that goes through these ticketers and with show business becoming so big in New Zealand [the Government] has to protect the consumer,” Eccles says.
In a written statement, Minister of Commerce and Consumer Affairs Scott Simpson told RNZ’s The Detail he is disappointed to hear those who purchased tickets have not been refunded. He is also aware of calls for law changes from the industry after this case.
“There are a broad range of existing protections for consumers in New Zealand. For example, a consumer’s rights in relation to cancelled tickets are typically set in the terms and conditions of their ticket. Any statements must be true and not misleading and if there is a breach, consumers may be able to obtain damages for the amount of their loss,” Simpson says.
He encourages ticketholders seeking a refund to also submit a creditors claim form to the liquidator.
“The Commerce Commission is currently investigating this case and I await their findings with interest,” Simpson says.
The Detail also spoke to Consumer NZ reporter Chris Schulz, who has his own experience with cancelled festivals where the organisers have gone into liquidation.
He thinks the cancellations of Juicy Fest and Timeless Summer are only the tip of the iceberg.
“The events industry is like a boom-and-bust industry. In boom times you see all these shows, all these festivals, post-Covid there were so many events.
“Now we’re coming towards the end of that ... we’re still in a recession, there’s not a lot of spare money floating around for things like tickets, people are being pretty picky about what they go to ... and that’s when you start seeing festivals fall over, you’re seeing concerts cancelled because they’re not selling enough tickets,” Schulz says.
But it was not a lack of ticket sales that led to Juicy Fest and Timeless Summer’s demise. Juiicy Fest Limited cited not being able to obtain a liquor licence for its Auckland venue as the reason for the cancellation.
The Auckland District Licencing Committee made the decision based on issues at previous Juicy Festivals, and issued a 198-page decision documenting those problems.
The regulation of ticket sales falls under the Consumer Guarantees Act and the Fair Trading Act.
Schulz says these both work really well, until a company goes into liquidation.
“That money’s disappeared, the company’s no longer running, the festivals haven’t happened and there’s just this really long process for people to get their money back,” he says.
Schulz agrees with Eccles that a law change forcing ticket companies to hold on to customers' money until after the event has happened would make a big difference.
“That is the thing that would protect consumers here, if an events company sold a bunch of tickets, that money should ideally be set aside, so that if it doesn’t happen it can be returned to ticketholders.
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