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Here are your 15 seconds of fame
Given the average person's wedding is estimated to cost £17,000, a millionaire rock star lavishing his fortune on his only daughter's big day could transform your normally quiet hotel or restaurant into a goldmine. Sound good? Maybe, but there are certain legal implications associated with holding a celebrity event in your establishment, and it'd pay to take professional advice before signing on the dotted line. Richard Findlay highlights the pitfalls of playing host to a superstar…
If you own the restaurant, plot of land or a quaint scotch [sic] castle-hotel, hosting a celebrity event could prove the opportunity of a lifetime. The possibilities are limitless, from birthday parties and charity events, to christenings and weddings – all celebrity-style and usually involving large sums of money. However, it's worth noting that the clients in question, although wealthy, can be the most difficult and demanding people you're ever likely to serve.
First up is the contract; don't be fooled into thinking you can arrange the minutiae of the occasion on goodwill and a firm handshake: verbal agreements aren't worth the paper they're written on. It is of utmost importance to have everything in writing, in advance, so that every aspect of the event is agreed and that the obligations of each party are undertaken. Although each is written on an individual basis and can be lengthy or complex, there are some common aspects to the contracts.
Confidentiality clauses will most likely feature in the agreement. Although many celebrities enjoy being snapped by photographers, it is probable they will wish their event to be a private affair (save for exclusive photo rights with a drossy glossy). It is also likely that the agreement will last a period of years after the event and that everyone involved will be obliged to sign it. Photos of Madonna's wedding to Guy Ritchie in 2000 have still not appeared in public and although possibly attributable to loyal friendships, this is more than likely down to watertight agreements between guest and organiser.
Access and venue hire clauses will define what can be used, by whom, when and for how long. Put simply, this means that as owner of the premises you will grant that your property can be used in a particular way.
Who will be responsible for the insurance at the event, both in terms of costs and responsibility? You may find your existing insurance is neither suitable nor of sufficient value to cover any potential damages, injuries or losses during the event. Indeed you may wish to indemnify yourself against losses or injuries to the celebrity guests. Being mindful of health and safety; new risk-assessment reports should be logged if there are any changes to the existing facilities or accommodation.
By hosting a celebrity event there is the potential for serious earnings and publicity for you and your property. However you should remember that the stakes will be higher than those of your average booking, and you should also be aware that if the buck stops with you and any agreed terms are breached, the results could cost more than the fee earned in the first place.
That said, given the correct specialist advice, you could find the success of your business long outlasts the celebrity marriage…
For specific advice and assistance on the above issues, contact Richard Findlay at Tods Murray LLP, on 0131 656 2276.
E: richard.findlay@todsmurray.com
www.todsmurray.com
There are some key issues to consider when hosting a celebrity function:
- Does the party have exclusive access to your hotel or restaurant?
- Will additional staff need to be drafted in?
- Will your chef be needed, or will the client use their own?
- Who is responsible for the insurance at the event?
- When and for how long will the premises be used?
- What is fee for the use of your hotel or restaurant and when is it payable?
- Can temporary structures be erected on the grounds?
- Will any additional music or liquor licences be required for external or temporary structures?
- Will you require venue and perimeter security to prevent any uninvited guests?
- Can helicopters land on your lawn?
This article has been edited from its original version. For the complete feature please see Catering in Scotland magazine February/March 2007.
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