News
The Dealmaker
Steve Monnington of
Mayfield Media Strategies
runs the rule over the latest
global exhibition deals
When I write this column these
days, I am aware that things
change so quickly that information I
provide can easily become out of date.
However, there are some new trends
emerging which point at an increasingly
positive sentiment towards our sector.
The main piece of good news is the
reaction towards trade exhibitions by
some governments around the world.
China led the way when the government
allowed the Hunan Auto show to open
on 30 April. Any concerns that this
would be a one-off were dispelled
when the China State Council, and the
Guangdong Health department (which
covers Guangzhou and Shenzhen – the
two largest exhibition cities in Southern
China) agreed that exhibitions could
resume subject to the venues, and
police departments being happy about
Covid-19 safety measures. The Shanghai
government also gave the green light for
shows to start in June.
Germany’s national government and
its 16 federal states agreed that there
should be a differentiation between
‘exhibitions’ and ‘mass gatherings’
– an important distinction which, as
with China, put the onus on the local
authorities and venues to create a safe
environment, as long as the virus stays
in check, and this removes the risk
of a continuing blanket ban. These
moves come despite the World Health
Organisation putting exhibitions in the
same category as festivals and other
major public events.
As of mid-May, the UK government
has not given us any clues as to whether
they understand that exhibitions are not
like beer festivals, and that organisers
can control their environment, for
example by using pre-booking systems
for specific visiting times. Whether they
appreciate that exhibitions can play a
part in kickstarting depressed sectors
of the economy remains in question.
Predictably the US approach has so far
has been divided along political lines
with Republican states more bullish
about when trade shows can resume.
The news that some Las Vegas casinos
are planning to re-open in June is a
good first step.
Also, investors still see exhibitions
as a good long-term bet. Informa’s £1bn
capital raise was reportedly fulfilled
in less than one hour while Hyve also
announced a major rights issue to
raise £126m of new funds which was
fully unwritten. Private equity owned
organisers such as Clarion, Closerstill
Media and Tarsus will presumably be
able to rely on their owners’ financial
muscle to get through this, although, we
can expect their inevitable exits to be
delayed by at least a couple of years.
“Associations that
own exhibitions
often rely on them
for the bulk of
their income”
It’s not all good news though.
Associations that own exhibitions
often rely on them for the bulk of their
income, and as non-profit organisations,
they are limited in the Covid-19 related
financial assistance they can receive.
In the USA where there is a high level
of association owned events, we can
expect to see many of these change
ownership – either outright or as a
joint venture with one of the larger
organisers that already has shows in
their sector.
Independent organisers are also
at risk. Those who postponed their
shows from the first half of the year to
September are now making plans for a
further postponement. Organisers who
have events running in October and
November are currently unsure about
what to do. Although most can currently
cover their overheads – often as a result
of increased digital revenues - crunch
time may come when a postponement
turns into a cancellation, and exhibitors
start to ask for their money back. Let’s
hope that the lifeblood of the UK sector
– the independent organisers along with
all of their suppliers and freelancers
– soon receive the same good news as
China and Germany.
08 — June