Friends,
Good news on November 6:
We have some wonderful economic news today.
Regardless of who wins the election, the financial markets are happy.
A split government , House and Senate under different control, is normally viewed on Wall street as desirable.
When we are in that circumstance, the country and hence the economy is not likely to go too far one way or the other.
It now looks very much like we will have a split Congress and Wall Street loves it.
The market has been up several hundred points a day for 5 days in a row.
Larry Fink, head of Blackrock, the world’s largest money manager with $8 trillion dollars under management, and Jamie Dimon, CEO of JP Morgan Chase, the world’s largest banking firm, both have come out publicly today with excellent short and long term predictions.
Most other Wall Street leaders feel the same way. The markets are very bullish now.
In the last 24 hours a huge number of political and medical leaders are now touting the fact that vaccines and therapeutics are indeed coming on online and that anticipate taking control of the virus starting early 2021. Many had previously taken the position that the vaccines and therapeutics were 9 months or more away. This was largely a political play. Now that the election is behind us most everyone is moving toward presenting reality, whatever it may be. Prior to the election some people stated a cure would occur very soon, some stated it would occur very late. Now, most are looking at the facts, which have vaccines starting in December and by early 2021 projecting positive results. This is big for our industry as it allows us to move toward large crowds.
The clouds have lifted and the political paralysis is now dissipating at a rapid rate. Whoever wins the election, it is widely believed that will not change. The use of the virus as a weapon by both sides is behind us.
The economy stayed strong after April and we are in a great position to move forward. The economy is getting stronger daily and should continue to.
Live Events and Cruise Lines are still the only market sectors totally shut, but that is beginning to change as now almost everyone wants the economy to open. Cruise lines are looking at January sail dates now.
7 Las Vegas showrooms open today.
2 Feld ice shows start tours next week in Texas.
The University of Kentucky has 3 socially distanced concerts scheduled in Rupp Arena.
Broadway is discussing opening earlier than June.
Several theme parks are open.
NASCAR continues to host fans, as does college and pro football.
College basketball starts at the end of this month with socially distance crowds.
All over the country events are being announced.
The flower is starting to bloom.
Whatever your political persuasion, the good news is that the political paralysis that kept the world shut down has started to lift .
Here is a statement this morning from Michael Rupino, head of Live Nation:
Live Nation said it expects live events will be back and big next summer judging by the 86% of fans that kept their tickets for rescheduled shows.
Between those tickets held for rescheduled shows and new sales “We have already sold 19 million tickets to more than four thousand concerts and festivals scheduled for 2021, creating a strong baseload of demand that is pacing well ahead of this point last year,” said CEO Michael Rapino as the company announced expectedly dismal quarterly earnings. “At the same time, surveys continue to show that concerts remain fans’ highest priority social event when it is safe to gather.”
We must look at our industry from a business and human point of view. Whatever the politics may be, we all must work within that framework.
We must adopt to the political climate, whatever it is, in order to succeed.
When you are stuck in quicksand it is best to figure how you get out, not how you got stuck.
We must look forward and plan how to get out and not worry about how we got here.
To wrap up, now that the election is behind us, most of the paralysis regarding the forward looking economy and COVID is rapidly dissipating.
It is clearing two months faster than I believed it would. That is great for our industry.
Indicators are now more than ever that we will have a moderate level of work in late March, moving toward a full work load by June.
This is very positive for the industry and for our people.
Yes, things can possibly change, but the lack of political paralysis allows us all to be the same page as we look at the facts going forward.
We must never ignore the reality of what COVID is, and I am sure we will not.
It should be treated properly and it will be.
That being said, between safety protocols, vaccines and therapeutics, coupled with a realistic nonpolitical mindset, we will slowly work out of this beginning today.
Thank you all for what you do on a daily basis, it matters.
We will continue to push Congress for a relief package.
Below is the November plan to promote the RESTART Act in November.
Tomorrow you will receive the RESTART instructions.
You will receive a target list of Senators next week.
I will share more information about the meeting with the Senate Small Business Committee when it is available.
PLAN TO PROMOTE THE RESTART ACT IN NOVEMBER 2020
We have a 3-prong approach to promote the passage of the RESTART Act to Congress in November 2020.
ACTION # 1
- We Make Events will hold a nationwide activation on November 10th to create the same result as #RedAlertRESTART and clearly identify the need of our industry on a national basis.
GOAL: 1,000 VIDEO PLACEMENTS
- TARGETED PLACEMENTS:
- Video Billboard Trucks on November 10
- Video Billboards on November 10
- Venue Electronic Marquees where available
- Social Media, Facebook, Twitter, Instagram
- Company “email blast” lists
- Send to friends and co-workers and ask that they do the same
- Send to our Congressional Representatives
- TARGETED MEDIA: We have several accomplished and well-spoken interviewees in our own organization to make our case and share their stories!
- TV Stations – run in conjunction with an interview
- Radio Stations – run on their websites with or without an interview
- Media Interviews to promote the video and our website
- Print – do an article with a slide from our video in conjunction with interview
ACTION # 2
- We will initiate a Call to Action identifying the critical Senators we need to convince to sign on as cosponsors of RESTART. You will be asked to write your Senators and convince them to cosponsor RESTART to save all devastated small businesses. We only need 4 additional Senate cosponsors to pass a Senate vote. Our goal will be 8 additional Senators. We have a target list.
ACTION # 3
- We are working toward arranging a meeting with the Senate Small Business Committee chaired by Senator Rubio to convey to them of the dire situation that all small businesses with a 50% or greater reduction in revenue are in. We will explain why RESTART is the only proposed legislation that will save businesses near extinction. This meeting will include a major artist in order to amplify our message.
The RESTART Act will allow all small business with a reduction in revenue of 25% or more (this needs to be raised to 50%) with less than 5,000 employees (this needs to be lowered to 500 employees) to receive 45% of your 2019 income. That money spent on employees, employee related cost, rent, utilities, interest on notes and COVID related items is forgivable. The balance will convert to a 7-year 1% note with no payments in year one, interest only year 2, and normal payments in year 3 to 7. The change to 50% lost revenue and less than 500 employees is to enable the bill to have a total cost of around $300 billion dollars, which is a number that is acceptable to most in Congress.
This 45% income will also be available to freelance people with 1099 or W-2 income. Thus, for these people, Enhanced Unemployment would not be required. The money, if used as payroll to yourself, is 100% forgiven.
Thank you very much.
Onward and Upward,
Michael T. Strickland
Bandit Lites, Inc.
Chair and Founder