"The bands always get paid up front because that's how they do business," says a business owner who provided support for last year's Street Scene. Eight months after the event, more than one vendor of sound, lighting, and/or staging services still has not been paid.
"We had to borrow money to pay our employees," says the business owner who claims to have had to struggle to cover his labor costs. "This is more than just someone who doesn't pay their bills; many of us have had a long-term relationship with [Street Scene founder] Rob [Hagey]."
It is estimated that Street Scene's production costs (equipment use, setup and take-down, stage hands) were between $250,000 and $500,000.
"All these people did this work expecting to be paid," says another business owner who claims his company hasn't been paid. "Promoters take a gamble every time they do a show. [Hagey] has to step up and do what is right."
One of the two contractors quoted for this story says he hopes Hagey's plan to pass Street Scene on to Live Nation won't result in the loss of expected revenue. Rob Hagey had no comment.
The first contractor says Hagey, in the past, always paid his bills in a timely enough fashion.
Though Live Nation announced four weeks ago that Street Scene would take place in Del Mar on September 22 and 23, the Del Mar Fairgrounds board of directors meets Tuesday, May 8, to make a decision.
On Monday, it was learned that the two sources for this story received payment for their services.