The business of maintaining a steel orchestra whether it be small, medium, or large is not an easy task and the overhead expenses can range from $1 million to $6 million a year.
The Business Guardian spoke to several bands on what it takes to be sustainable yearly.
President of bpTT Renegades, Colin Greaves, said the Carnival season usually costs between $1.6 to $1.7 million a year and the organisation can run into an excess of $5 to $6 million a year.
Greaves said if one does the math in terms of how much the steelband makes even if they win Panorama earning $1 million, 10 per cent must be given back to Pan Trinbago, as that’s part of the agreement, so the band now ends up with $900,000.
“Then by the time you look at paying all the bills, you’re always in a deficit. For instance, in the Carnival season alone the player’s bill is almost $700,000, catering is over $100,000, tuning is over $100,000, uniforms are....you know it adds up quite quickly. Then there are special effects, decor, pyrotechnics, and all those things are over $100,000,” he detailed.
Greaves noted that it is important to find other ways to offset the cost through commercial activities.
“We have a bar, we have a gift shop, so we generate revenue and sales from the sale of merchandise for the season. Of course, we have corporate sponsorships and also have performances that the band will do throughout the season as well as the year. All those things kind of come together in one ecosystem to help cover the cost.”
Asked how much money the 125 players earn for the panorama season Greaves said it can be anywhere between $3,000 and $6,000, depending on the placement of the band in the finals.
On the topic of self-sustainability, which was discussed at the Business of Pan panel discussion at last week’s T&T Energy Conference, the bp Renegades president said while it is not impossible, steel bands will have to change their organisational structure and become more business-savvy and business-oriented to achieve that.
“It’s not necessarily a profitable business, but there’s a move for sustainability. You need money to operate, right? So in light of that, bands will have to start exploring all sorts of different ways that they could earn revenue, apart from performances and virtual lives and ways to monetise the music. Outside of corporate, bands will have to be creative. Now, luckily for bands who have sponsors, like Renegades, a lot of emphasis over the years has been placed on the human resource development that manages the band. We’ve had a lot of training, and also a lot of the people that are affiliated with the band through different committees on the board, are trained professionals,” Greaves said.
A struggle
Heritage Skiffle Steel Orchestra manager Junia Regrello said the band’s bill in transportation from San Fernando to participate in Panorama is $200,000, unlike the north bands, who are in close proximity to the Queen’s Park Savannah.
“Its another cost when you have to break down pan racks and load them back up to head to their panyards in the South. This is why south bands have been suffering over the years because of that drastic gap between north and south bands. This is why we cannot make any progress,” Regrello lamented.
He said Skiffle Steel Orchestra receives $600,000 for Panorama from Heritage, which is $200,000 more than their last sponsor, who was Caribbean Airlines Ltd.
Regrello encouraged corporate T&T to place monies into the unsponsored bands as there are many.
“ Look at Heritage Petroleum Company: They are sponsoring us and Siparia Deltones, which is a good start, and others should follow, as upkeep expenses for a band yearly is a lot. Corporate Trinidad gets a tax incentive of up to $200,000, so more can be surely done”
He said to tune the pans in Heritage Skiffle alone costs $100,000, then uniforms, and purchasing tenor pans, so the steel orchestra bill a year can be $2 million.
“Luckily, we made it to the finals, because if the band just makes it to the semifinals, you get no money. We are still paying bills from last year at Panorama.”
Corporate Trinidad can do better
Phase II Pan Groove, is no longer sponsored by Hadco and went into the Panorama semi-finals unsponsored. Speaking on this, arranger Len “Boogise” Sharpe said every year it took $1.2 million for them to get ready to hit the Savannah stage but that changed this year.
“Hadco is no longer with Phase II, but I thank them immensely for their support over the eight years. They have been good to me and the band.”
The drill master for the band, Damian Alexander, noted that contrary to what is being said by some, the band and Hadco are not enemies.
“Phase II wants to thank HADCO for participating in our journey. You know, like when a child gets big, and they have to leave the home? So, we are thankful for Hadco. We don’t have any qualms with Hadco. The narrative that you may have been hearing for quite some time, is not our truth. Our truth is we are moving on,” he explained.
Alexander said that different individuals came together for the band to make it to the semi-finals on Sunday.
Asked whether the band is looking for another corporate sponsor to help cover their overheads especially when the band has international gigs, the drill master said, “When that happens, we will know. But for now, we’re going from strength to strength.”
Speaking exclusively to Business Guardian on Tuesday, executive chairman of the Hadco Group, John Hadad, said the company and Phase II were in a complementary relationship, involving both parties standing by principles and having shared cultural values, along with other things.
“When that starts to divert is the time for us to start looking at separation. I would like to think that the separation between Hadco and Phase II happened quite amicably, we still have a very good relationship and who knows what the future might bring. For now, once there is a diversion in branding, and other things such as principles Hadco will not be a sponsor. We have sponsored the band for nine years,” Hadad disclosed.
On the issue of steel bands being self-sustainable, he outlined that it is very possible for that to happen as there can be events at the panyard throughout the year, and a band can start selling merchandise such as T-shirts, cups, and other branded items.
Also commenting on self-sustainability, Hiram Murillo, the managing director of Witco, which has been partnering with Desperadoes Steel Orchestra for close to 60 years said, “The possibility of self-sustainability for the band is already taking shape. We view our relationship as a symbiotic partnership, where the financial support we provide allows the band the freedom to advance our culture through music. Nonetheless, the band continues to make significant strides towards self-sustainability.
Recently, Desperadoes completed a series of training and capacity-building initiatives that directly support this possibility. In collaboration with the National Entrepreneurship Development Company (Nedco), comprehensive classes were designed to develop essential skills for our pan players. This robust curriculum featured courses in leadership, an entrepreneurial mindset, financial literacy, and financial management. Through these initiatives, the band members have been able to enhance their talents and prepare for a prosperous future.”