Investors Turn From Volatile Post Election Stock Market To Music Festivals

Nov. 13, 2012 - PRLog -- In fear of continuing losses from this past week's market sell-off, combined with a predictably poor year-end S&P and NASDAQ forecast, wobbling Asian market, an increasingly unstable Europe, the question of another 4 years of Obama, and a slew of regulations and tax increases to hit in January, investors are frantically searching for a new place to put their sidelined cash before the 2011 tax year ends.

Unwilling to just sit in the passenger seat while the masses are belted in waiting  to drive off the fiscal cliff, once conservative investors have done their research and are inquiring and investing in major music festivals.

With major multimillion dollar cash generators like Bonnaroo, Coachella and Stagecoach becoming annuities for their respective communities, a number of major projects are on the board waiting to match up with angels.

Robert (SFX) Sillerman in NYC has invested hundreds of millions in festivals in just the last few years. Sillerman has a track record for being ahead of the live entertainment business curve turning SFX Entertainment into the world’s largest producer, promoter and presenter of live entertainment. He sold the company to Clear Channel for $4.4 billion in 2000.

A major music festival can cost between $2-$8 million and produce between a $50% and 200% return from regular tickets, VIP tickets, food and beverage, merchandise, vending and sponsorships.

Veteran Festival Producer Hal Davidson says "unlike 3 hour concerts, festivals have many revenue streams, dominate the market, can afford tier 1 talent and repeat year after year growing in popularity and profits. Festivals also offer the community jobs, economic impact, residual tourism and increase the tax base, the bigger the event, better the guarantee of success because you can afford bigger bands and a stronger marketing campaign, but it takes experience because major festivals are complicated and usually involve working with local government".

Maryland based Davidson just returning from preparing a plan for a Melbourne promoter for a 2 weekend festival in Australia for 2013 is now working with Florida based Entertainment Only on securing investors for up to 5 projects in Miami, Las Vegas, Australia and New Zealand. The most profitable events are targeted at the mobile and active lifestyle of 18-35 yr. olds.

"Investors earn 40% of the total net on most of our projects and can be in just once or invest in the production company, reaping long term returns. Big festivals are where the money is at, small ones don't have enough horsepower to get the boat up on plane " Davidson said.

"There are always great new festival looking for solid investors, all they have to do is contact me and we have proposals ready to launch. Davidson concluded.

For more information contact Hal Davidson through www.rentapromoter.com or see his instructional book website www.concert-promotions.com