ESTA response arrived today:
December 12, 2016
Dear ESTA Members,
LDI recently issued an “LDI and ESTA Update” that contains several statements we would like to correct for our members.
LDI Statement said:
As you know, ESTA is an important industry association made up of lighting dealers, distributors, and manufacturers.
As our members are well aware, you work in all facets of the entertainment technology industry including lighting and grip, rigging, staging, scenery, soft goods, cameras, power distribution, special effects, design, consulting, and much more. You are dealers, rental houses, production companies, consultants, designers, distributors, manufacturers, reps, integrators, unions, insurance companies, publications, individuals, and more.
LDI Statement said:
[LDI’s] financial contribution [to ESTA] over the last five years alone has totaled well over seven figures.
While LDI paid ESTA for services and licenses that ESTA provided to LDI, the payments made by LDI were not gratuitous “contributions” as suggested. The payments were negotiated and agreed contractual business obligations of LDI to ESTA under a written agreement that licensed the use of the ESTA name as a sponsor of the LDI Show and required ESTA to provide LDI with specified services that were detailed in the contract. In return, LDI paid ESTA a royalty on booth sales and provided ESTA space on the show floor, hotel rooms and meeting rooms.
LDI Statement said:
… some industry folks seem fixated on the fact that we are owned by a company called Penton, and that management somehow dictated our actions here.
In September 2015, ESTA was notified by LDI that they would not be renewing the agreement upon its expiration at the end of the 2015 show.At that time, we were specifically told that this was a change in Penton’s business model and Penton was ceasing agreements of this type across all of their markets. The minutes of the September 2015 Governing Body and October 2015 Regional Board meetings reflect this. As required in the agreement, LDI made a post-termination payment to ESTA in 2016 and ESTA complied with certain required restrictions in connection with the payment.
LDI Statement said:
…we felt the time was right to re-negotiate new terms.
LDI stated to us that while it was willing to look at ways we might continue to work together, its efforts were not to be construed as a renegotiation of the terms of the existing contract (which had already been terminated), and that ESTA would no longer receive a royalty from LDI on sales of exhibit space.
LDI Statement said:
Versions in which we cut off funding and have no intention of providing any further support for the association going forward.
While we can't control what others have said, ESTA has consistently stated that we have been in discussions with LDI throughout 2016 to try and find ways in which we might continue to work together to the benefit of both organizations. We would continue to welcome this opportunity, and we would welcome any contributions that LDI might make to ESTA in support of our important industry programs.
LDI Statement said:
Recognizing that immediately, we have met regularly with executive director Lori Rubinstein, president Jules Lauve, and various other key ESTA members since last September to come to a new agreement.
Eddie Raymond is the current President of ESTA. Jules Lauve is, as of November 1st, the President-elect.
Both sides have made good faith efforts to find a way forward that would provide ESTA the revenue needed to continue. Numerous ideas have been discussed, including several presented by ESTA that were designed to enhance the show and provide more benefit for ESTA members attending the show as well as all exhibitors. All but two ideas were rejected by LDI as not being directly revenue generating for the show. LDI has stated that it is extremely unlikely that any of the initiatives discussed would get ESTA close to where we need to be to make up for the lost royalty, and that we should “explore partnerships with other entities” as well.
ESTA representatives have been doing exactly that, but realized that these types of agreements can take a great deal of time to put in place and that we did not have the luxury of time if we were going to save the Technical Standards Program. To that end, we began a major fundraising campaign at our Fall meetings, asking supporters to make five year pledges in order to provide secure footing going forward and give ESTA time to put other revenue generating initiatives in place. Forty-seven companies and individuals have stepped up so far with long term pledges to the TSP, giving us a good start on our goal.
ESTA representatives met again on Friday, December 9th with David Johnson, LDI’s Managing Director, and expressed their desire to continue to try and find ways to work together on the LDI show. David stated he would go back to his team to discuss and would come back to us some time in the new year.
We continue to hope to find ways to work with LDI in the future and we wish them every success with the show.
Best regards,
Eddie Raymond, President Jules Lauve, President-Elect
