Kiwi fans of daredevil freestyle motorcycle show Crusty Demons are being warned to carefully consider buying tickets to their New Zealand shows next year after the Australian promoter went into administration.
Four Crusty Demons shows across the ditch have been "put on hold" after promoter Complete Events Group (CEG) - which is directed by Matthew Phillip Mahoney - said on November 16 that they had received "several serious threats".
CEG said at the time that all tickets remained valid and revised show dates would be announced after a police investigation had taken place.
Recent Crusty Demons shows from CEG in Australia have been criticised online, with allegations of double-booked seats, a lack of facilities, or "boring and uneventful" shows.
Security company Protection Plus Security NQ told news.com.au last month they had still not been paid in full by CEG for providing security at a show in Townsville in August.
On November 22, CEG became insolvent, appointed external administrators and ceased trading, according to a statement on their website .
A letter from administrators RSM Australia Partners dated yesterday said "the Company has insufficient funds to provide any refunds to any ticket holders for the cancelled shows.
"Should funds become available, creditors may be entitled to receive a dividend."
Three New Zealand Crusty Demons shows are scheduled to take place in New Zealand next year during their Rise of the Demons Tour in Auckland, Masterton and Christchurch.
A spokesperson representing CEG to media, gave assurances today that the New Zealand shows will go ahead because they are being managed by a "separate" promoter.
“This company has not been affected by the voluntary administration of the Australian company
"The promoters are working under Matt's NZ company CEG NZ – this company has not been affected by the voluntary administration of the Australian company and is proceeding with the New Zealand shows as planned," the spokesperson said.
According to Companies Office records, CEG NZ was incorporated on September 9 this year, with Mr Mahoney as the Director.
The ultimate holding company is Australia-based Mahoney Group Promotions.
The CEG spokesperson insisted the Australia and New Zealand versions of CEG are "completely separate", despite being directed by the same person.
Kiwi Rachelle Derek bought two tickets to the Auckland show at the Kumeu Showgrounds a month ago, paying about $197, but is now worried it won't go ahead.
"My partner and I didn't have a lot of money to get anything too big for Christmas this year, so when that came up, we decided to buy a ticket," Ms Derek said.
She is now in the process of trying to get her money back, but her bank told her since she had given the money willingly, it wasn't a matter of fraud and the payment couldn't be reversed.
She said if she could give a message to Mr Mahoney, it would be to "do the right thing and give people back their money".
“Be really careful about purchasing tickets to the New Zealand shows
Fair Go Reporter Anna Burns-Francis, who has investigated consumer ticketing issues in depth, said New Zealand fans should think carefully about buying a ticket to the New Zealand shows.
"We'd warn any Crusty Demons fans to be really careful about purchasing tickets to the New Zealand shows," she said.
"Even if you bought ticket insurance, it's unlikely you could make a claim if the shows were cancelled, because there's already publicity in Australia that the promoter's in trouble - so it wouldn't be unreasonable to think the same thing might happen here, and therefore you had fair warning of the issue.
"The Consumer Guarantees Act means, in theory, you should get a refund if the goods or services aren't delivered – but if there's no money left in the company, then you won't see a cent – no matter what the law says.
"It's also a good reminder to only purchase tickets from the primary seller – that's the agency the promoter tells you to use – because you've got even less protection if you buy from a secondary seller like Viagogo.
"If you haven't bought tickets yet, we'd advise you to have a careful think about whether this is something you want to purchase."
A spokesperson for the Commerce Commission said one complaint has been received in relation to the New Zealand Crusty Demons tour.
"Primarily this would be a contractual issue so would fall outside the Commission's remit under the Fair Trading Act," a Commission spokesperson said.
"Depending on the circumstances the only provision of the Act that may be relevant is section 21(c) of the Fair Trading Act which states that it is an offence to demand or accept payment for goods or services if, at the time of the demand or acceptance a person does not have reasonable grounds to believe that it will be able to supply the goods or services."
Crusty Demons rider Seth Enslow today posted on his Instagram account that "I'm equally as disappointed with the cancelled shows.
"Please understand this has nothing to do with the rider or the Crusty Demon brand."
No contact details are available for Mr Mahoney, with the Complete Events Group website referring all queries to RSM.
News tip or more information? Email Luke Appleby or Follow @lukeappleby
SHARE ME