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I personally know bands from the US who have come over to play, and who didn't get paid. This is apparently fairly common.
Regarding the fans, they tried to squirm their way out of taking responsibility for refunding fans after they cancelled the Jabberwocky festival at short notice. It was all out in the open on Twitter as people were quoting email responses from ATP on ATP's own page. Ugly stuff in my opinion.
On another topic, how come Stewart Lee has agreed to curate ATP? The same ATP who have ripped off fans and the artists who have made their festivals possible.
http://www.theguardian.com/culture/2015/jun/24/stewart-lee-atp-2016-curator-pontins