December 15, 2004

From: Deep South Entertainment
Management for Stryper
Raleigh, North Carolina

Re: Stryper / Mexico City

On November 20, 2004, Stryper was contracted to play Mexico City at the Palacio de los Deportes. Unfortunately Stryper was forced to cancel their appearance, which came as a direct result of several counts of Breach of Contract on the part of the show’s promoter.

The members of Stryper, their crew, and staff were very saddened by the events that surrounded this situation, but in the end, after much prayer and deliberation, were left with no alternatives. Stryper sincerely regrets any disappointment and inconvenience to the fans, the other bands performing, and even the promoters and their staff involved.

Stryper does, however, plan to tour in 2005, including a possible return date to Mexico.

The Details:

The primary, but not only, Breach of Contract counts were those of financial ones and failure to secure proper travel documents in a timely manner. The promoters failed to fulfill their contracted financial obligations on more than a dozen occasions and were given ample opportunities to amend this breach.

In addition, it was (and always is) the responsibility of the promoter to secure the proper travel documents needed to safely, and legally, travel to internationally. Extreme delays, and possibly even complete lack of these documents for the band and crew were the final count in forcing the cancellation. There was a very probable risk of unsafe, and even illegal, travel on the part of Stryper and their crew as a result of the promoter’s failure to attend to this matter.

Although there were other counts of Breach Of Contract, these two, proper travel documents and financial obligations, were the two primary, and most significant ones.

Over the years Stryper has performed thousands of concerts worldwide. In addition, their management has handled thousands of concerts worldwide, dealing with a wide array of promoters and artists.

It was this promoter’s first attempt at a large concert and they were unfortunately not equipped to properly handle a concert of this magnitude.

No one is more upset about this cancellation than Stryper. The band and crew, who all live in various parts of the country, had flown in to one destination to begin rehearsals. Flights to Mexico were booked. Merchandise was already shipped to Mexico. Gear was packed, some of which was already en route to Mexico. All arrangements had been made on the band’s part to make this show a reality. Stryper fulfilled their obligations of the contract in every manner, and in the process spent incredible amounts of money doing so.

Stryper is a large organization, staffing upwards of 15 people, not including the band members.

The promoters were, on at least a dozen occasions, encouraged by Stryper’s management to reschedule the show if they were not going to be able to fulfill their obligations of the contract. Repeatedly, Stryper’s management warned that a forced cancellation would be extremely costly on Stryper’s part. And repeatedly Stryper was given assurance from the promoters that these obligations would be fulfilled. In the end, this proved untrue.

The non-refundable deposits from the promoter had long since been allocated and disbursed on expenses directly related to the show.

The North Carolina based company Deep South Entertainment manages Stryper.

Co-Founder of Deep South Entertainment, Dave Rose comments, “We are all extremely saddened by this situation. In simple terms: We do concerts like this worldwide, everyday, with a wide variety of artists. The process is actually quite simple and standard throughout the industry. We (management and promoter) agree to the basic terms (i.e. Date, Venue, Payment amount, technical and travel obligations, etc.). Once these terms are agreed to, both parties sign a standard performance contract outlining the terms, just as was done in the case of this concert. If the artist fails to meet the terms, they are held responsible. If the promoter fails to meet the terms, then they are held responsible. In this case, it’s as simple as that; the promoter failed to meet, on multiple levels, the terms of the contract.”

He goes on to explain, “The cost to operate a major band, such as Stryper, depends on several variables. One of which is ‘Touring Season versus a Non-Touring Season.’ If a show happens during a Non-Touring Season, often referred to in the industry as a “one-off”, it almost doubles, sometimes triples, the cost of the show and thus the price of the band. The band, crew, and team, has other obligations during the Non-Touring Season. These obligations must be set aside and a team that is otherwise immobile, must be mobilized. This is very costly. During a Touring Season, however, the costs can be amortized over many shows, thus making the cost of each show minimal. With a band such as Stryper, expenses begin to incur from the moment a show is contracted, which is the reason that all standard performance agreements require non-refundable money up front.

Early in our talks with the promoters, but very prior to contracting this show, we believed that Stryper MIGHT be in the middle of a touring season around the date in question. When it was quickly discovered (early on in 2004), and again, very prior to contracting the date, that this was not the case; that Stryper would not be touring during this time, we then, still very early in our talks, proposed other dates. The promoters, however, insisted on this date of November 20. They were made fully aware of the fact that this would be a Non-Touring time frame for Stryper and thus would be more costly than if we were to try to pick another date. So, a price was set, and agreed to, and a contract was issued and signed by both parties.”

He adds, “But contract’s aside, we realize there’s a human aspect to this as well. And even though Stryper was promised things that were not delivered, we still wish no harm to the promoters. They are nice people and we would love to work with them, even still, in possibly rescheduling another date. In the meantime, we have set up a collector’s package on Stryper.com in which 100% of the net proceeds go to help out the promoters and their families. We expect encouraging results from the sale of this package.”

It always has been, and always will be, Stryper’s goal to entertain, uplift, and offer hope through their music. The reason for performance contracts is to protect both the artist and the promoter so that future performances will be a reality for both parties. Stryper would not be able to continue to reach millions of people through their music if they simply disregarded the very real business aspect of their organization, including performance contracts.

Stryper greatly appreciates the prayers and support of friends and fans worldwide and is excited about a big year in 2005.