26 NATPE continued to prosper up until COVID, when it canceled its in-person Miami events in 2021 and 2022, and for financial reasons, its Bahamas event in 2023. After the January 2022 market cancellation, the situationat NATPEunraveled rather quickly. The move to the Bahamas was unpopular with the TV industry, and it is unclear why the location was chosen over Miami (although the official reason was to save money). The change of venue was revealed by VideoAge in its December 2021 Issue, but wasn’t officially confirmed until June 28, 2022. Then, 96 days later, on October 3, NATPE announced in a press release that it would be filing for Chapter 11 bankruptcy protection, and 23 days later, it canceled the Bahamas event (the actual bankruptcy filing was on October 11, 2022). In mid-November 2022, it was revealed that seven companies had expressed an interest in bidding for NATPE’s assets, but a few days later, on November 21, the Fontainebleau filed an objection with the bankruptcy court, asserting that NATPE (which, they claimed, owed the hotel more than $3.41 million) had left the hotel out of the discussions. It is clear that even if NATPE made some money with its 2021 virtual events, the pandemic drastically reduced its reserves. (The 2020 market had caused some grumbling among participants when the computers at the Fontainebleau were reportedly hacked during the market’s hotel check-in portion, but NATPE was able to monetize the incident by reportedly getting some $500,000 refunded from the hotel.) The 2022 in-personmart cancellation, however, was the blow that finally felled NATPE. It was unexpected and, in some ways, unnecessary, considering two previously successful in-person events: MIPCOM in October 2021 and MIP Cancun the following month. Apparently, after learning of some exhibitor defections, NATPE’s management resolved that the cancellation fee to be paid to the hotel was going to be lower than the cost of running the event, especially considering its high food and beverage commitment to the hotel. However, NATPE later reportedly opposed the cancellation fee for “force majeure” reasons (i.e., COVID). It is also unclear if NATPE had by then kept its cancellation insurance policy. The premium reportedly reached $70,000 a year. According to NATPE’s filings with the U.S. Bankruptcy court, as of September 30, 2022, the organization reported $518,548 in cash and $326,072 in investments. Prior to March 31, 2022, it had total cash and investments of $2.5 million. As the same time liabilitieswere shown to be $1.2 million as of September 30, 2022. This compares to $1.5 million as per March 31, 2022. Reportedly, exhibitors who had paid in advance would have been given credits towards the January 2023 event, but that was also canceled. However, NATPE’s court filing does not reflect the separate $3.41 million dispute with the Fontainebleau Hotel. On January 4, 2023, the Toronto, Canadabased company Brunico Communications announced to have acquired the assets of NATPE, which include the brand, and its content markets, conferences and events. According to the release, “Starting with NATPE Budapest from June 26-28 [2023] at the InterContinental Hotel, NATPE will see a full-scale return of its annual slate of events culminating in early 2024 with NATPE Global.” Dick Lippin, chairman of the Los Angelesbased PR firm, The Lippin Group, and on the executive board of NATPE, commented: “NATPE was a great organization for many, many years. It is unfortunate and sad that the onset of COVID and an ever-changing industry has resulted in the position it is in today.” The Lippin Group has been NATPE media and PR representative since in the mid 1990s. Added Andy Kaplan, chairman of the Los Angeles-based KC Global Media Entertainment and NATPE chairman: “The multi-decade legacy that NATPE has forged is unmatched. The future of content has never been brighter and NATPE’s place in that future has never been more exciting.” (By Dom Serafini) NATPE’s Tribulations January 2023 (Continued from Page 24) VideoAge: You took over NATPE with the 2003 market. What kind of financial problems did you uncover, and how did you solve them? Rick Feldman: No major financial problems, but the revenue drain from Las Vegas was of concern. VA: Your first crisis started in 2008 but you were able to solve it by moving the market from Las Vegas to Miami Beach in 2011. All was working well for NATPE, so why were you dismissed in 2012? RF: It wasn’t a dismissal. I indicated that I’d be leaving after the 10th year, and the board preferred not to wait. VA: Did you leave NATPE with a favorable agreement with the Fontainebleau Hotel, the market’s venue, especially considering the controversy surrounding the expensive food and beverage commitments? RF: I left with an acceptable agreement... not necessarily exactly favorable at that moment in time. VA: Did you leave NATPE with a good financial balance sheet? RF: I left with a clean balance sheet and some millions in the bank. VA: The two NATPE CEOs that came after you only lasted for short periods. Why do you think they lasted such a short time? Did the selection committee change its guidelines? RF: I am not sure of any guidelines, but JP [Bommel] was Rod Perth’s choice. I assume the board rubber stamped it. (Editor’s note: Perth succeeded Feldman, and Bommel succeed Perth.) VA: What would you have done to avoid NATPE’s default? RF: Difficult question to answer 10 years out. I assume we would have reallocated our portfolio a while back to be more conservative. We would for sure not have as many payments to non-staff “consultants.” I feel uncomfortable offering more without the data. VA: Finally, what experience do you have in TV that qualified you to helm NATPE? RF: I knew the buyer side and the seller side. I knew how to make deals. I had worked for independents and affiliate [TV stations]… I was well traveled and had many friends in the syndication business. Most of all, I felt that NAPTE needed to exist and that I had the energy, knowledge and contacts to make I happen. Recent developments are a real bummer! Q&A with Rick Feldman, NATPE CEO From 2003 to 2012 NATPE Miami 2012’s Opening Night cocktail party by the pool area of the Fontainebleau resort
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