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Believe’s share price jumped 19.2% to 14.78 euros ($15.93) this week following Monday’s news that a consortium including founder/CEO Denis Ladegaillerie plans to take the company private at 15.00 euros per share. The scant difference between the offer price and Friday’s closing price suggests investors believe Ladegaillerie, along with investment funds EQT and TCV, is likely to get the deal done.
“Believe has a significant opportunity ahead to consolidate the independent music market and create the first global major independent,” Ladegaillerie said in a statement. But the consortium, which has 71.9% of outstanding shares, has a good distance to go. After the group obtains a 75% stake through already agreed-upon transactions with some shareholders, it will acquire regulatory approvals and the opinion of an independent expert before making a tender offer for the remaining shares.
The Billboard Global Music Index rose 1.4% to a record 1,659.96 as 13 of the index’s 20 stocks finished the week in positive territory. That brought the index’s year-to-date gain to 8.2%. Over the last 52 weeks, the index is up 29.4%.
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Thanks to Believe’s double-digit gain and improvements from some large companies such as Live Nation, CTS Eventim and Spotify, the Billboard Global Music Index outperformed many other indexes around the world. In the US, the Nasdaq composite and the S&P 500 declined 1.3% and 0.4%, respectively. South Korea’s KOSPI composite index rose 1.1% to 2,648.76. In the United Kingdom, the FTSE 100 gained 1.8% to 7,711.71.
U.S. stocks had an off week, rocked by news on Tuesday (Feb. 13) that U.S. prices rose 0.3% in January. That led investors to flee from stocks for fear that the higher-than-expected inflation figures would cause the Federal Reserve to keep interest rates high to cool the economy. Then on Thursday (Feb. 15), numbers from the U.S. Census Bureau showed that retail sales fell 0.8% in January, worse than the expected 0.3% decline and well below December’s 0.4% gain.
Spotify gained another 2.2% to $246.18, bringing its year-to-date gain to 31.0%. Live Nation shares improved 4.2% to $93.27 ahead of the company’s fourth-quarter earnings release on Feb. 22. Reservoir Media rose 8.6% to $6.96 a week after the company raised its guidance for full-year results and posted 19% revenue growth last quarter.
K-pop stocks have had a terrible start to 2024, though there was some improvement this week. SM Entertainment gained 9.7% to 80,100 won ($60.11), improving its year-to-date decline to 13%. HYBE, which is down 10.7% year-to-date, gained 4.3% to 208,500 won ($156.46). YG Entertainment rose 3.1% to 43,500 won ($32.64) but has fallen 14.5% in 2024. And JYP Entertainment managed a modest 0.7% gain, bringing its year-to-date deficit to 24.4%.
After a scoreless first quarter, the 49ers’ Christian McCaffrey got the first touchdown of the 2024 Super Bowl, taking San Francisco to a 10-0 lead over Kansas City in the second quarter — and who was right there in the Niners’ end zone to cheer him on? Jelly Roll and a crowd of fellow music stars all sitting in the Live Nation Field Club.
And that was just the first half: After the Chiefs tied it up 19-19 and took the game into overtime, the A-list party got to watch Kansas City march down the field and score the Super Bowl-winning touchdown in that same end zone, directly in front of them. Tate McRae shared a video of the Chiefs’ celebration on her Instagram Story with the caption “wowwwww,” while Kygo posted a video of the game-clinching touchdown in action.
Live Nation took over the field-level suites in the north end zone of Las Vegas’ Allegiant Stadium and brought together some of the biggest names in music across genres and labels to all watch the game with an unbeatable view. Jelly Roll — who caught up with Billboard behind the scenes at the Super Bowl — was the Field Club’s social butterfly, seen connecting with Machine Gun Kelly, Chad Smith of the Red Hot Chili Peppers, Nickelback’s Chad Kroeger, Twenty One Pilots, The Chainsmokers, Imagine Dragons’ Dan Reynolds and Kygo.
Jelly’s friend and collaborator Lainey Wilson was spotted catching up with her “wait in the truck” duet partner HARDY and also hanging out with McRae and The Kid LAROI, who in turn spent some time chatting with MGK.
Peso Pluma and Feid were seen hanging with Marco Antonio Solís, frontman for Los Bukis, who will kick off the first Spanish-language Las Vegas residency in May.
While hanging out with Bob Weir (who is about to start his own Vegas residency at Sphere with Dead & Company in May), the Chili Peppers’ Smith repped for his nearly-Super-Bowl-bound team by wearing a Detroit Lions hat in the Field Club. A couple of Billboard chart-topping duos — Josh Dunn and Tyler Joseph of Twenty One Pilots and Drew Taggart and Alex Pall of The Chainsmokers — were seen sharing a table.
Chloe and Halle Bailey filmed a TikTok from the Field Club soundtracked by Muni Long’s “Made for Me” (with the perfect opening line for the look-alike sisters: “Twin, where have you been?”).
Other stars spotted in the Live Nation Field Club: Post Malone (fresh off his Super Bowl performance of “America the Beautiful”), Travis Scott, Maren Morris, Lizzo, 21 Savage, Jared Leto, Backstreet Boys’ Kevin Richardson, Lil Nas X, H.E.R. (who was a surprise guest during Usher’s halftime show) and Zhu.
Below, find social posts from inside the Field Club, including the Bailey sisters; Jamil Davis of Revels Group alongside Scott and Pluma; and Miami nightlife entrepreneur David Grutman with Pluma, Jelly Roll and Live Nation CEO Michael Rapino.
As the music industry prepares to gather next week in Los Angeles for discussions on how to address climate change within the sector, a new initiative to better understand the scope of the challenge is underway.
On Monday (Jan. 29), MIT’s Environmental Solutions Initiative announced that it’s launching a comprehensive study of the live music industry’s carbon footprint. Co-funded and supported by Warner Music Group, Live Nation and Coldplay, the report will suggest solutions to reduce the environmental impact of live music events across all venue sizes, from, a statement says, “pubs and clubs to stadiums.”
Focused on the U.S. and U.K. markets, the partnership will begin with an initial research phase, with the resulting Assessment Report of Live Music and Climate Change expected to be complete by this July.
The report aims to provide a comprehensive assessment of the relationship between live music and climate change, to identify key areas where the industry and concertgoers can make tangible improvements to reduce emissions, to foster positive outcomes and to provide a detailed analysis of the latest developments in green technology and sustainable practices.
“I’m delighted that we will be working with our partners to co-create recommendations for a sustainable future in music,” says Professor John E. Fernandez, director of the ESI at MIT. “As well as jointly funding the research, I applaud the spirit of openness and collaboration that will allow us to identify specific challenges in areas such as live event production, freight and audience travel, and recommend solutions that can be implemented across the entire industry to address climate change.”
Coldplay has also committed to manufacturing all physical records for their forthcoming 2024 album from recycled plastic bottles, which a statement claims is the first initiative of its kind.
Coldplay is a longtime sustainability leader, with the band saying last June that its Music Of The Spheres tour has so far produced 47% fewer CO2e emissions than its previous tour and that it’s planted five million trees to date.
With fan travel being one of the biggest carbon emissions drivers in the music industry, in 2022 the band partnered with Live Nation and major public transportation providers to offer fans free or discounted rides to foster more sustainable travel. A study found that this initiative fostered a 59% average increase in public transport ridership on show days across four U.S. cities.
Madonna’s management team and Live Nation responded Wednesday to a high-profile lawsuit claiming the music legend harmed her fans by starting New York City concerts later than scheduled, disputing some allegations and saying they plan to “defend this case vigorously.”
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The response statement came after days of silence regarding the proposed class action lawsuit, in which two fans claim the star and the concert giant breached their contract with concertgoers and violated New York state laws by starting three December shows in Brooklyn more than two hours later than the scheduled.
In their joint statement, Madonna’s reps and Live Nation said that the just-completed European leg of her Celebration Tour had “received rave reviews” and vowed the fight back against the lawsuit’s allegations.
“The shows opened in North America at Barclays in Brooklyn as planned, with the exception of a technical issue December 13th during soundcheck,” Madonna’s reps and Live Nation said. “This caused a delay that was well documented in press reports at the time. We intend to defend this case vigorously.”
Ticket buyers Michael Fellows and Jonathan Hadden filed their case last week, claiming that the delays — starting at 10:30 pm rather than the scheduled 8:30 pm — caused real legal harm to ticket buyers who, among other things, “had to get up early to go to work” the next day.
“Defendants’ actions constitute not just a breach of their contracts … but also a wanton exercise in false advertising, negligent misrepresentation, and unfair and deceptive trade practices,” attorneys for the two men wrote in their complaint, filed in Brooklyn federal court.
The three concerts at Brooklyn’s Barclays Center, stops on Madonna’s Celebration Tour, were originally scheduled for July but rescheduled to December due to the singer’s illness. Fellows and Hadden said they expected their show (Dec. 13) to start on time, and “would not have paid for their tickets had they known that the concerts would start after 10:30 p.m.”
“Defendants failed to provide any notice to the ticketholders that the concerts would start much later than the start time printed on the ticket and as advertised,” attorneys for the two men wrote.
Leaving Barclays Center after 1:00 a.m., the two men claimed ticket buyers were “left stranded in the middle of the night,” some “confronted with limited public transportation” options and others with increased prices for ride-share services. They also pointed out that the concert took place “on a weeknight,” meaning they “had to get up early to go to work and/or take care of their family responsibilities the next day.”
Can fans really sue over that? When they formally respond in court, Madonna and Live Nation will probably challenge many of the lawsuit’s claims by arguing that concert fans are on notice that live events sometimes start a little later than scheduled. They could also point to contractual provisions in ticket contracts that could give performers some leeway for unexpected delays.
In addition to Madonna herself, the lawsuit also named Live Nation and Barclays Center as defendants. In technical terms, the complaint alleged breach of contract; violation of New York’s business practices and false advertising laws; and several other forms of wrongdoing, including unjust enrichment.
The lawsuit also included a claim of so-called negligent misrepresentation, saying the concert organizers “knew or should have known” that the concerts would not start at 8:30 because of alleged past instances of Madonna taking the stage late — and should have warned fans.
“Madonna has a long history of arriving and starting her concerts late, sometimes several hours late,” attorneys for Fellows and Hadden wrote. “This history occurred throughout her 2016 Rebel Heart Tour, her 2019-2020 Madame X Tour, and prior tours, where Madonna continuously started her concerts over two hours late.”
Attorneys for Fellows and Hadden did not return a request for comment on Wednesday’s response statement.
The Billboard Global Music Index — a diverse collection of 20 publicly traded music companies — finished 2023 up 31.3% as Spotify’s share price alone climbed 138% thanks to cost-cutting and focus on margins. Spotify is the single-largest component of the float-adjusted index and has one of the largest market capitalizations of any music company.
The music index was outperformed by the tech-heavy Nasdaq composite, which gained 43.4% with the help of triple-digit gains from chipmaker Nvidia Corp (+239%) and Meta Platforms (+194%). But the Billboard Global Music Index exceeded some other major indexes: the S&P 500 gained 24.2%, South Korea’s KOSPI composite index grew 18.7% and the FTSE 100 improved 3.8%.
Other than Spotify, a handful of major companies had double-digit gains in 2023 that drove the index’s improvement. Universal Music Group finished the year up 14.7%. Concert promoter Live Nation rode a string of record-setting quarters to a 34.2% gain. HYBE, the increasingly diversified K-pop company, rose 34.6%. SM Entertainment, in which HYBE acquired a minority stake in March, gained 20.1%.
A handful of smaller companies also finished the year with big gains. LiveOne gained 117.4%. Reservoir Media improved 19.4%. Chinese music streamer Cloud Music improved 15.8%.
The biggest loser on the Billboard Global Music Index in 2023 was radio broadcaster iHeartMedia, which fell 56.4%. Abu Dhabi-based music streamer Anghami finished 2023 down 34.8%. After a series of large fluctuations in recent months, Anghami ended the year 69% below its high mark for 2023. Hipgnosis Songs Fund, currently undergoing a strategic review after shareholders voted against continuation in October, finished the year down 16.6%.
Sphere Entertainment Co., which split from MSG Entertainment’s live entertainment business back in April, ended 2023 down 24.4%. Most of that decline came before the company opened its flagship venue, Sphere, in Las Vegas on September 29, however. Since U2 opened the venue to widespread acclaim and earned Sphere global media coverage, the stock dropped only 8.5%.
For the week, the index rose 1.1% to 1,534.07. Fourteen of the index’s 20 stocks posted gains this week, four dropped in price and one was unchanged.
LiveOne shares rose 15.7% to $1.40 after the company announced on Friday (Dec. 29) it added 63,000 new paid memberships in December and surpassed 3.5 million total memberships, an increase of 29% year over year. iHeartMedia shares climbed 14.6% to $2.67. Anghami continued its ping-pong trajectory by finishing the week up 16.9%.
SiriusXM’s announcement that it planned to merge its stock with Liberty SiriusXM Group, a tracking stock of Liberty Media, helped the SiriusXM share price climb 16.4% to $5.40 this week after it lagged for much of 2023. Friday’s high mark of $5.78 nearly brought the stock back to where it ended 2022, at $5.84 per share.
The deal, which requires regulatory approval and is expected to be completed in the third quarter of 2024, “will create value for all stockholders by eliminating the tracking stock structure, enhancing liquidity and allowing former LSXM stockholders to participate directly in the ongoing performance of SiriusXM,” said Greg Maffei, Liberty Media president/CEO, in a statement released Tuesday (Dec. 12).
Elsewhere, Live Nation climbed 9.2% to $93.00 this week thanks in part to an investor note by Morgan Stanley analysts that raised the price target to $110 from $100. Analysts pointed to a “secular shift” in consumer spending on experiences, the company’s increased disclosure about its Venue Nation business and a “highly unlikely” chance the Department of Justice will break up the company following its antitrust probe. Morgan Stanley’s $110 price target implies the stock, which is up 33.4% year to date, has 18% upside after Friday’s close.
Those big gains from SiriusXM and Live Nation, as well as a 4.1% gain from Universal Music Group, one of the index’s most valuable components, helped the Billboard Global Music Index increase 2.2% this week to a record 1,522.78. Nine of the index’s 20 stocks finished the week in positive territory, 10 stocks lost ground and one was unchanged.
Other indexes soared this week after the U.S. Federal Reserve held interest rates unchanged on Wednesday (Dec. 13) and indicated it would cut interest rates three times in 2024. The tech-heavy Nasdaq composite set a record closing price of 14,813.92 on Friday, marking a 2.8% gain for the week. The S&P 500 is still 2% away from its high mark after finishing the week up 2.5% to 4,719.19. In the United Kingdom, the FTSE 100 rose 0.3% to 7,576.36. South Korea’s KOSPI composite index gained 1.8% to 2,563.56.
The Billboard Global Music Index’s second-largest increase came from Reservoir Media, which gained 15% to $6.82. The stock’s $6.89 closing price on Thursday was its highest since $7.06 on Feb. 16 and is 31.4% above its 52-week low of $5.19 set on Aug. 10. Chinese music streamer Tencent Music Entertainment gained 8.0% to $8.88.
Hipgnosis Songs Fund gained 4.9% to 0.701 pounds ($0.89) after the company announced on Monday (Dec. 11) the sale of 20,000 non-core music assets for $23.1 million. The proceeds will be used to pay down its revolving credit facility. On Friday, the company also announced the appointment of Christopher Mills as an independent non-executive director effective immediately. Mills, who has a reputation as an activist investor, is CEO/investment manager of North Atlantic Smaller Companies Investment Trust and founded Harwood Capital Management in 2011. Following the news, Hipgnosis Songs Fund shares rose 2.3% on Friday.
Music streaming company Anghami dropped 30.4% to $0.94, bringing its three-week decline to 66.5%. Other than Anghami, however, no other stock finished the week with a loss greater than 5%. iHeartMedia fell 4.9% to $2.52 and MSG Entertainment dropped 3.2% to $31.16.
A Taylor Swift fan who filed a class action against Ticketmaster parent Live Nation in the wake of last year’s disastrous presale of tickets to the Eras Tour has agreed to drop her case against the concert giant, months after attorneys on the case said they were engaged in settlement talks.
Swift fan Michelle Sterioff filed her case in December 2022 just weeks after the botched Eras rollout, which saw widespread service delays and website crashes as millions of fans tried – and many failed – to buy tickets. At the time, her lawyers blasted Live Nation as a “monopoly” that had “knowingly misled millions of fans.”
But a year later, Sterioff voluntarily asked a federal judge on Tuesday to dismiss her case. It’s unclear if a settlement was reached, but the two sides reported in August that they were engaged in “ongoing settlement discussions.” Neither side immediately returned requests for comment.
Sterioff’s proposed class action was just one piece of the legal fallout for Live Nation following the error-plagued pre-sale for Eras, which went on the earn hundreds of millions of dollars and dominate headlines as 2023’s biggest concert tour.
After the Nov. 22, 2022 incident, Live Nation quickly apologized to fans and pinned the blame on a “staggering number of bot attacks” and “unprecedented traffic.” But lawmakers in Washington and state attorneys general around the country quickly called for investigations. That included Sen. Amy Klobuchar (D-Minn.), the chair of the Senate subcommittee for antitrust issues, who suggest that regulators consider “breaking up the company” – a reference to Live Nation’s 2010 merger with Ticketmaster.
Days after the incident, the New York Times reported that DOJ had already been investigating Live Nation for months over potential antitrust violations, reaching out to venues across the country to ask about the company’s conduct. Last month, Reuters reported that the probe was ongoing, with federal investigators focusing on whether Live Nation imposed anticompetitive agreements on venues. A Senate subcommittee investigation is also underway, sending out subpoenas last month demanding info about the company’s “failure to combat artificially inflated demand fueled by bots in multiple, high-profile incidents.”
Taylor Swift performs onstage for night three of Taylor Swift | The Eras Tour at Nissan Stadium on May 07, 2023 in Nashville.
John Shearer/TAS23/Getty Images for TAS Rights Management
Sterioff’s case was one of two major class actions filed against Live Nation over the Eras ticket rollout. In her complaint, she accused the company of violating consumer protection and antitrust laws, calling Ticketmaster a “monopoly that is only interested in taking every dollar it can from a captive public.”
“Because Ticketmaster has exclusive agreements with virtually all venues capable of accommodating large concerts, Taylor Swift and other popular musicians have no choice but to sell their tickets through Ticketmaster, and their fans have no choice but to purchase tickets through Ticketmaster’s primary ticketing platform,” her lawyers wrote.
Sterioff’s lawsuit claimed that Live Nation has exploited that dominance to charge “ever more supracompetitive ticketing fees for both primary and secondary ticketing services,” including for “virtually all venues hosting ‘The Eras’ Tour.”
But the lawsuit has largely been paused for months. In August, both sides agreed that it would be better to wait to litigate the case after a federal appeals court rules on a separate antitrust lawsuit against Live Nation, which will decide whether the company can force ticketbuyers to resolve such legal claims in private arbitration rather than open court.
The other class action over the Eras debacle, filed by an outspoken fan named Julie Barfuss and more than two dozen other spurned Swifities, remains pending in California federal court. In her complaint, Barfuss went even further than Sterioff, claiming Live Nation had tacitly allowed the kind of mass-scalping that caused so many problems during the pre-sale.
“Ticketmaster has stated that it has taken steps to address this issue, but in reality, has taken steps to make additional profit from the scalped tickets,” Barfuss’ lawyer wrote. “Instead of competition, Ticketmaster has conspired with stadiums to force fans to buy more expensive tickets that Ticketmaster gets additional fees from every time the tickets are resold.”
Live Nation has expanded its partnership with SoLa Impact’s SoLa Foundation, funding a major investment in SoLa’s second state-of-the-art youth center in L.A. and a program that will provide fully subsidized educational and workforce training opportunities in music and technology.
The touring giant has agreed to finance the completion of the new campus, which will be named SoLa Tech and Entertainment Center Powered by Live Nation. Opening in early 2025, the new 8,500-square-foot technology and entertainment center will be located on the ground floor of the “Crenshaw Lofts,” SoLa Impact’s new 195-unit workforce and affordable housing development located near Crenshaw and Leimert Blvds.
The center will host the 18-week Live Nation Next Gen Program, which offers paid apprenticeships for historically excluded youth (ages 16-21) from South L.A. The program helps students explore entertainment and production careers and learn directly from Live Nation staff and executives about various aspects of live entertainment — from booking to marketing to operations and more. The program, which will work in partnership with Live Nation’s School of Live, will culminate with the group promoting, ticketing and producing a community concert.
“We are incredibly inspired and encouraged by Live Nation’s continued partnership and their commitment to diversity and inclusion in the live music industry and beyond,” said Sherri Francois, SoLa Impact’s chief impact officer and executive director of the SoLa Foundation. “This is another amazing example of the power of mission-aligned corporate and nonprofit partners working together with focus and determination to solve seemingly intractable challenges.”
The new SoLa Tech and Entertainment Center Powered by Live Nation will service more than 1,000 students annually, with a long-term goal to close the socio-economic access gap for careers in the entertainment, science, technology, engineering, arts and math (STEAM) fields. Within the music sector, students will also be trained in the business and technology of the live entertainment industry, audio engineering and recording, coding, 3D modeling and animation, graphic design, digital content creation, entrepreneurship, and practical life and career skills. The center will also be a space for cultural, economic and civic events for the wider community.
“Live music isn’t a standard part of most schools and colleges, even though it continues to be a growing industry,” added Michael Rapino, president/CEO of Live Nation Entertainment. “By partnering together with SoLa, kids learn the business of music and we help them get first-hand experience, which unlocks a whole new world of careers, which has been incredible to be part of.”
SoLa Tech and Entertainment Center Powered by Live Nation, set to open in early 2025 in South LA.
Courtesy Live Nation
Live Nation will pay its 5,000 employees and service crew working at its club venues a minimum of $20 per hour, company officials announced earlier today.
“Shows wouldn’t happen without the unsung heroes who work in the background to help support artists and fans,” Live Nation CEO Michael Rapino explained, announcing that the wage hike was an extension of Live Nation’s On the Road Again program, first rolled out in September with the endorsement of touring legend Willie Nelson.
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“In addition to developing artists, clubs also help industry professionals learn the ropes, and many of our promoters and venue managers worked their way up from smaller venues,” Rapino continued. “The live music industry is on track for years of growth and offers a great career path, and by increasing minimum wages we’re helping staff get an even stronger start as they begin their journey in live.”
The $20 per hour base pay is significantly higher than federal minimum wage, which currently sits at $7.50 an hour and serves as the defacto minimum wage in 30 states. Washington has the highest minimum wage in the U.S., starting at $15.74 per hour, followed by California at $15.50, Connecticut and Massachusetts at $15 and New York at $14.20.
“Moving forward, base pay for hourly club staff will start at $20/hour, while supervisor roles will start at $25/hour with opportunity for advancement in the company,” a press release announcing the wage rate explains. The increases will impact more than 5,000 crew members who serve as box office attendants, production crew, artist hospitality, guest services, ushers, parking attendants, cleaning crews, sustainability coordinators, and more.”
“Live Nation prides itself on providing advancement opportunities and developing leaders from within,” according to a release announcing the new minimum wage. “And at venues participating in the On The Road Again, nearly half of all crew members were elevated from part-time into full-time roles over the past two years.”
Company officials added that two other initiatives announced by Live Nation — a commitment that all headline and support acts playing Live Nation clubs would receive $1,500 in travel bonuses on top of nightly compensation and zero fees on band merch sold at participating LN venues, would be extended through 2024.
The September announcement did draw criticism from the National Independent Venue Association, which criticized the program saying “Temporary measures may appear to help artists in the short run but actually can squeeze out independent venues which provide the lifeblood of many artists on thin margins.”
One NIVA member however, Thomas Cussins with Ineffable Music Group, which oversees 10 venues across California, said he welcomed the change, noting his company eliminated merch fees at the beginning of the year, noting it is an overall healthier ecosystem and you will actually do better in business because you are doing something that makes the process easier.”
Live Nation officials are at an impasse with a powerful Senate subcommittee over demands that the concert promoter hand over confidential emails, contracts and memos detailing sensitive information about artist compensation.
Attorneys for Live Nation say they have already turned over more than 10,000 documents to investigators working for Sen. Richard Blumenthal (D-Conn.) and the Permanent Subcommittee on Investigations, or PSI, which Blumenthal chairs. Live Nation in-house counsel Dan Wall wrote on Live Nation’s corporate blog on Tuesday (Nov. 21) that the company is willing to hand over more sensitive documents if the PSI agrees to confidentiality protections to ensure the information is kept out of the public domain.
So far, Blumenthal has refused to agree to any restrictions requested by Live Nation and issued a subpoena for the confidential documents on Nov. 16. Live Nation officials plan to challenge the subpoena in court and are preparing for a lengthy legal battle to protect the confidentiality of its artist contracts if the two sides can’t reach an agreement.
“It is only in a subpoena enforcement action [before a federal judge] that Live Nation can assert its rights to protect the confidentiality of this information,” Wall wrote in the blog post.
Live Nation’s insistence on “confidentiality protections” is fairly routine, most legal experts agree, especially when it comes to court proceedings or investigations by government agencies. It’s also common practice for congressional investigators to agree to confidentiality rules while collecting evidence for congressional inquiries, but there’s no legal recourse if a member of Congress or staff discloses confidential information to the public.
News on Monday (Nov. 20) that Live Nation was being investigated by the powerful Department of Homeland Security and PSI surprised many music industry insiders. Created by President Harry Truman in 1941 to investigate wasteful defense spending after World War II, the PSI’s focus for much of its existence has been on matters of national security, including Korean War atrocities, the American Mafia’s influence on major labor unions and the government’s response to Hurricane Katrina.
Under Blumenthal’s leadership, the PSI has shifted its focus to consumer-oriented investigations, like the proposed merger of the PGA and the Saudi-backed LIV Golf league, equity within Medicare Advantage and sexual abuse in federal women’s prisons.
Blumenthal has also long been a critic of Live Nation and its 2010 merger with Ticketmaster, calling for the two companies to be split apart during a high-profile Senate hearing in January. According to a Nov. 16 letter from Blumenthal to Live Nation CEO Michael Rapino, the PSI officially began investigating Live Nation in March, in part for what Blumenthal calls “failure to combat artificially inflated demand fueled by bots in multiple, high-profile incidents, which resulted in consumers being charged exorbitant ticket prices.”
That description is the only public hint of what PSI is focusing on in its Live Nation investigation and doesn’t seem particularly damning of the concert promotion company. While bots, often operated by scalpers, do inflate demand for tickets — especially during high-profile onsales — and can lead to exorbitant ticket prices, it’s almost always Ticketmaster’s competitors in the secondary market who stand the most to gain.
Before Live Nation hands over any documents that contain “highly sensitive client information about artists, venues and others with whom we deal,” Wall wrote in the blog post, the company wants “binding confidentiality protections to prevent its misuse.”
Live Nation’s request might prove more difficult than the company’s leadership realizes, says Andrew Olmem, attorney and partner at Mayer Brown, which specializes in defending clients targeted by major investigations and congressional inquiries.
“Any documents provided to Congress are always vulnerable to public disclosure,” Olmem explains, noting that Congressional members and their staffers enjoy broad protections against criminal and civil liability under the U.S. Constitution’s speech and debate clause.
It is common for attorneys of clients targeted by Congressional inquiries to negotiate terms of documents’ use with investigators requesting the information, Olmem says. Many investigators, he adds, care deeply about reputational trust, knowing that violating confidentiality agreements with targets could make future targets less willing to voluntarily cooperate with document requests and significantly slow down investigations.
“But even if you secure such an agreement, members of Congress and their staffs can’t be liable for releasing confidential documents as part of their official legislative duties, such as submitting (the documents) into the congressional record or reading them on the House or Senate floors for the purpose of informing a legislative debate,” Olmem continues. “There are many circumstances in which members and their staff are incentivized to leak and do leak information for political purposes without consequences.”