SOCAN Tariff 9: Sports Events Fees

Summary#

The Copyright Board published SOCAN Tariff 9 – Sports Events (2018–2023), which sets the fees organisers must pay when music is played at live sports events between 2018–2023. The main rule is a fee of 0.1% of ticket revenue per event, with a minimum charge of $5 in some years and simple reporting and payment rules (reports due within 30 days of each quarter).

What it does#

• Covers performances of music (live or recorded) at sports events such as baseball, football, hockey, basketball, skating competitions, races and track meets.
• Sets the per-event royalty at 0.1% of gross ticket receipts (taxes on sales and amusement excluded).
• Treats a complimentary ticket as worth half the lowest paid ticket in the same category.
• Sets minimum fees:
  • For 2018–2020, an event with free admission pays $5.
  • For 2021–2023, every event (including free ones) has a minimum fee of $5.
• Does not authorize music at opening or closing events if an extra admission charge is added for those parts.
• Requires users to file a report and payment no later than 30 days after each quarter ends.
• Gives SOCAN the right to audit a user’s records with reasonable notice.
• Unpaid amounts incur interest calculated daily at 1% above the Bank of Canada rate on the last day of the previous month; interest does not compound.
• All amounts are listed before any federal, provincial or other taxes.

Who's affected#

• Event organisers and promoters who put on sports events (teams, private promoters, municipalities and venues).
• Venues that sell tickets for sports events.
• Anyone who plays music at those events, either with live performers or recorded tracks.
• It is not clear from the notice whether broadcast or online streams of the event are covered; the tariff specifically refers to performances “in connection with” the event itself.

Why it matters#

• Organisers must budget for a small royalty on ticket sales: 0.1% is modest, but the $5 minimum ensures very small or free events still pay something.
• The complimentary-ticket rule can change how organisers count and value free seats for royalty calculations.
• The quarterly reporting, payment deadline (30 days) and possible audits add some administrative work for organisers.
• For most fans, the change is unlikely to be noticeable; the direct effect is on the costs and record-keeping of the people running sports events.