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Article:

COVID-19: Organisers of cancelled events can now apply for compensation

02 April 2020

Latest update on 23 April 2020.

(Note that the scheme is being updated by the Danish Business Authority and therefore they have temporarily closed the application module)

It is going to be rather complicated for many sport clubs and for concert and exhibition organisers, among others, to work out whether they are entitled to compensation for their cancelled events as a consequence of the coronavirus. Here, we give you a quick overview of the regulations involved.

Access for applying for compensation of cancelled events with many participants has been expanded and now includes many more events, but you have to really keep your wits about you. Organisers must be well prepared before applying for a support package. The reason is that very specific information is required about a lot of things if one is to have any hope of compensation. Applications for compensation for more than DKK 500,000 must be appended by a declaration from an independent auditor. The cost of this is covered by the state for amounts up to DKK 30,000. In most cases, this will result in a 100% refund.

 

Who can apply for compensation?

In the initial stage, this is open to anyone who had organised an event with participation in excess of 350 people during the period from and including 6 March up to and including 31 August 2020 and who has had to cancel, postpone or materially change this as a result of the special social gathering regulations as a consequence of COVID-19, better known as the coronavirus. The Danish Business Authority temporarily closed the application module

The access to compensation in the shape of a financial support package applies regardless of whether the event was free for participants or required participant payment.

 

Who can NOT apply for compensation?

Organisers of cancelled fairs and exhibitions, etc., for which a total number of participants in excess of 350 across several days are not entitled to compensation. It is a condition that the organiser expected 350 participants at the same time.

It is also not possible to apply for compensation if a postponed event is held in a different jurisdiction, but with the same owners, inside a year of the original event date.

Organisers who have had their losses as a consequence of COVID-19 covered by insurance or other state compensation schemes can also not apply for the support package as it is a requirement that the loss can be documented to relate to the cancellation or change as a consequence of COVID-19 and cannot be mitigated or covered in some other way.

 

What are the amounts covered by the support packages?

It is possible to apply for compensation for the loss caused by the cancellation or change. This will, as a starting point, mean lost ticket earnings. It is also, however, possible to apply for cover for direct and indirect costs where these can be related to the event and are also affected by COVID-19. There is no ceiling on the size of compensation available to individual organisers.

 

We can help you in relation to COVID-19   

At BDO, we know the regulations related to the coronavirus and can therefore help with the assessment as to whether a specific organiser is entitled to compensation. We can also assist with the filling out of the application form for the support package and also, of course, with the auditor’s declaration where this is required. We have offices nationwide.


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