35% of Grassroots Music Venues have closed in the last 20 years.
93% of Grassroots Music Venues are tenants and the average operator has 18 months left on the tenancy.
Since the start of the COVID crisis the sector acquired over new £90m of debt, yet 67% of the Cultural Recovery Fund grant money was paid to Landlords.
Grassroots Music Venues and Landlords have different motivations. Landlords want to maximise investment. Grassroots Music Venues want to plan for the future, invest in sustainability, accessibility, diversity, artists and the venue itself.
The issue of ownership underlies almost every other challenge that Grassroots Music Venues have faced during the last 20 years: gentrification, noise complaints, under investment, poor economic model and an inability to plan for the future.
The Solution:
Music Venue Trust (MVT) has set up a Charitable Community Benefit Society (CCBS) names Music Venue Properties (MVP). Unlike a Charity, a CCBS can raise money via Community Shares.
By purchasing these shares, music fans and ethical investors will help raise funds MVP will use to buy freeholds, whilst also receiving 3% APR on their investment.
MVT can offer the majority of current operators an immediate rent reduction and help contribute to building repairs and insurance. MVP would be able to offer long-term security and market resistant rents.
MVT #SaveOurVenues campaign raised over £4.1m with over 80,000 people contributing during COVID. The crowd already exists.
What Happens Next?:
MVT want the music community to be shareholders in Music Venue Properties. They us all to become the owners of the grassroots music venues we love.
MVP has identified 9 venues for a pilot project that will allow them to establish proof of concept.
6 venues are in England, 1 in Scotland and 2 in Wales.
The Community Share Offer launches today with a view of purchasing these venues before the end of 2022.
MVT has said:
“This project would significantly improve the resilience of the sector by establishing a protected lease status for music venues which encourages creative practice – if a venue operator can run a great venue, they will have security of tenancy for as long as they can use it.”
For more details please follow this link.
To participate please follow this link.
