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The escalating legal battle between Coldplay and its former manager Dave Holmes significantly stepped up this month when the band filed a counterclaim lawsuit in the U.K. courts seeking £14 million ($17 million) in damages.
The court filing comes two months after Holmes announced he was suing the four members of Coldplay — Guy Berryman, Jonny Buckland, Will Champion and Chris Martin — for more than £10 million ($12 million) in damages and unpaid commission relating to the band’s yet-to-be-released 10th and 11th studio albums.
Having examined legal papers filed in the U.K. courts on behalf of both parties, here’s Billboard’s rundown of everything we know so far about the acrimonious dispute between Holmes and his former star clients.
Why Holmes and Coldplay fell out after more than 20 years of success together
Although the precise cause of the fallout between Holmes and Coldplay is not detailed in either lawsuit, legal papers filed by the group’s attorneys on Oct. 5 state that the band made the decision to dismiss the manager last summer following “a period of increasing concern” about his conduct. (Holmes’ position as the group’s manager officially came to an end Dec. 31, 2022).
In particular, the four band members allege that Holmes breached his contractual obligations by “failing” to adequately manage costs for the group’s 2022-2023 Music of the Spheres World Tour leading them to suffer “significant financial losses.”
“Unjustified” touring costs
Examples of financial mismanagement cited in the countersuit include spending 10.5 million euros ($11 million) on the construction of 16 bespoke stage pylons and commissioning the manufacture of a bespoke audio-visual “Jet Screen” at a total cost of $9.7 million that was only used for 10 shows in 2022. Another third-party supplier, listed in legal papers as TAIT, was paid $8.8 million to construct staging for the tour.
Coldplay’s attorneys say that those costs were “disproportionate and unjustified” and, as a result of Holmes’ “failing adequately to supervise and control” the tour budget, the band incurred at least £17.5 million ($21.5 million) in costs “which would otherwise have been avoided.”
That version of events is disputed by sources close to Holmes who deny that the former manager was responsible for tour costs overrunning. Instead, people familiar with the situation tell Billboard that many production decisions relating to the Music of the Spheres were made under the guidance of the band’s long-term creative director Phil Harvey, who has co-managed the band since last summer (following Holmes’ exit) alongside Mandi Frost and Arlene Moon.
Live Nation loans
Coldplay’s lawsuit claims that Holmes breached his fiduciary duties by using his association with the act to borrow a total of $30 million in low interest loans from Live Nation to fund a personal property development venture in Canada. The loans were not fully disclosed to the group and, as such, were secured without its informed consent, claim the four members.
Coldplay’s attorneys argue that these loans – set at a fixed annual interest rate of 2.72% – placed Holmes in a potential conflict of interest when it came to securing the best possible deal for his clients from Live Nation.
At the time when Holmes was negotiating a deal with Live Nation in 2021 and 2022 to exclusively promote Coldplay’s Music of the Spheres tour outside of the United Kingdom, the manager owed the touring giant approximately $27 million, the court filing alleges.
In response, the band is asking the courts to grant it access to Holmes’ financial accounts detailing any profits resulting from the low interest loans and the payment of any monies due to them.
The so-called “Albums 10/11 Agreement”
Holmes’ lawsuit against his former clients’ centers around a proposed contract extension (the so-called “Albums 10/11 Agreement”) that he claims Coldplay entered into in 2021 with his California-based management company, DHMC, relating to its yet-to-be-released tenth and eleventh studio albums.
Attorneys for Holmes claim he is owed outstanding commission from record company advances the manager negotiated on the band’s behalf with its label, Warner Music Group-owned Parlophone Records. Those advances totaled £35 million ($44 million) for Coldplay’s 10th album and £15 million ($19 million) each for the group’s subsequent two studio albums.
In return, Holmes received two payments in 2021 of £1.5 ($1.9 million), each equivalent to a 10% commission fee, state the court documents. However, his attorneys claim he is still due outstanding payment from the remainder of the record company advances paid to Coldplay.
Clearing samples, arranging recording sessions and recruiting Max Martin as producer
Holmes’ lawsuit additionally claims he is due payment for “extensive services” his company carried out for the 10th and 11th albums (and related tours) prior to his termination as manager.
These services include arranging writing and recording sessions in Jamaica and London, clearing an instrumental sample from musician Hal Walker, arranging a recording session on a film set in Boston, and liaising with producer Max Martin’s manager to arrange recording and production sessions.
Holmes says his team also worked on planning promotional campaigns, as well as scheduling, marketing, budgeting, sponsorship and ticket pricing for the United States, Asia and Australia legs of the Music of the Spheres World Tour.
Attorneys for Coldplay’s four founding members dispute their former manager’s claim and say that negotiations between the two parties broke down before “any such agreement might have been signed.”
In its defense and counterclaim filing, the band is seeking repayment of £3 million ($3.7 million) paid to DHMC in 2021 as advances for the band’s 10th album.
What Holmes and Coldplay are saying outside of court
On Coldplay’s part, very little. When Holmes’ lawsuit was filed in August a representative for the band confirmed with Billboard that Holmes’ management contract with the four-piece expired at the end of 2022 “at which point they decided not to start a new one. The matter is now in the hands of Coldplay’s lawyers and the claims are being vigorously disputed.” Representatives of the group declined to comment when contacted by Billboard this week about Coldplay counterclaim lawsuit.
Responding to Coldplay’s legal action, which is dated Oct. 5, a spokesperson for their former manager said, “Accusing Dave Holmes of non-existent ethical lapses and other made-up misconduct will not deflect from the real issue at hand: Coldplay had a contract with Dave, they are refusing to honor it and they need to pay Dave what they owe him.”
The matter will now proceed through the U.K. courts unless a settlement can be reached.
Benji and Joel Madden, the creative forces behind pop punk outfit Good Charlotte, successful music management outfit MDDN and streaming service Veeps are launching their most ambitious project yet.
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Today the famous music brothers are launching Veeps All Access, a new Live Nation-backed online video subscription service built atop the Veeps live-streaming infrastructure developed and launched by the Maddens in 2018 and acquired by Live Nation in January 2021. All Access is a shift for Veeps, which has operated as a pay-per-view business up until now, charging customers to access live and on-demand streams by artists like Southern rockers Tyler Bryant and the Shakedown or soul and R&B star Miguel, typically priced between $9.99 to $14.99.
All Access will grant fans access to all live shows streamed through Veeps as well on-demand content, special artist exclusives and original programing including the newly greenlit “Sidehustles” and “Artist Friendly,” Joel Madden’s music interview podcast-turned-video talk show, premiering tomorrow (Oct. 4) with Brandon Boyd of Incubus.
The price of All Access is $11.99 per month or $120 for annual pass, which is in line with other popular streaming services like Disney Plus which increases from $10.99 per month to $13.99 per month on Oct. 12, or Paramount Plus, which is now bundled with Showtime at $11.99 per month. Veeps also has struck early partnerships deals with Samsung, Ticketmaster, and Verizon and will be available on the Veeps app on iPhone, Android, Apple TV or Roku service.
Veeps All Access will kick off today with the premiere of The Postal Service and Death Cab for Cutie’s sold-out show from AZ Financial Theater, October and November will feature performances from a wide range of artists, including Run The Jewels, performing a special 4-night series live from the Hollywood Palladium October 11-14, pop acts Macklemore, Jessie Ware and Chappell Roan; hard rock, indie and alternative acts A R I Z O N A, Bad Omens, Bishop Briggs, Boys Like Girls, Misterwives, Nothing But Thieves, Senses Fail, Frank Turner and Waterparks; shows from rap and soul artists like OhGeesy, Flatbush Zombies, Kiana Ledé and Phabo and country artists such as Darius Rucker, Jason Aldean and Shane Smith & The Saints. New shows will be added weekly.
Joel Madden tells Billboard that the mission of Veeps has always been to connect fans who can’t attend a concert with their favorite artists, even if the artist is not touring in their city or the show is already sold out. He adds that by providing an affordable subscription option, Veeps is also helping Live Nation drive most artist discovery, connecting fans with a wider range of artists and their fan communities.
Veeps All Access will also include a wealth of archived content from artists including 5 Seconds of Summer, Aerosmith, Amy Winehouse, Dierks Bentley, Fall Out Boy, Imagine Dragons, Katy Perry, J Balvin, Lainey Wilson, Mumford & Sons, Muse, Niall Horan, Norah Jones, Poppy, PVRIS, Rage Against the Machine, Rolling Stones, Shania Twain, Slipknot, Sting, The Killers, The Smashing Pumpkins, Yeah Yeah Yeahs,= and more. Veeps will be powered by a show recommendation engine and nearly all concerts are delivered with spatial sound capabilities and high-quality 4K streaming.
Joel said partnering with Live Nation on the project has been critical to the company’s expansion, noting “If we call anyone inside Live Nation for help, we get support and access to a great group of people.”
Benji Madden added “there’s a lot of generosity with their resources and experience,” noting that “It’s taken a lot of investment build out a Netflix-style experience, but it’s important because everyone involved in this project believes that the future of live entertainment is access.”
That means reaching the far corners of the globe where bands don’t always tour — or finding a way for a fan that can’t be at the show to “have the same access that fans expect for their sporting events,” Joel Madden said. “We know that music fans are going to expect access more and more access with artists and we know that Live Nation is the right partner for to provide that access.”
Kyle Heller, co-founder and chief product officer at Veeps tells Billboard “one of the things that has blown us away on this journey is the attention a viewer pays to a Veeps show. We live in a world of 15-second clips, short-form videos, and quick 20-minute episodes dominating the landscape but when people switch Veeps on it’s not unusual for them to watch 2+ hours of content, uninterrupted. It’s unlike anything I’ve seen before.”
Live Nation CEO Michael Rapino added, “Live performances have a unique magic, and Veeps has done an incredible job bringing fans that experience in their homes. All Access is giving fans a new way to discover music and artists another marketing platform that will only continue to fuel the demand for live with an even bigger world of concerts at our fingertips.”
Subscription plans will initially be available in the U.S. with international expansion planned to meet Veeps’ global usership. Learn more and sign up at veeps.com.
Nine months before Live Nation made the headline-grabbing decision to cut merch fees at 77 of its clubs and theaters across the country, Ineffable Music Group did it first. Now, the company’s CEO, Thomas Cussins, has a piece of advice for other independent venue owners and operators concerned that the concert giant is using this tactic to curry favor with artists and agents and squeeze out their businesses: Everything will be OK.
“Merch money is not what is going to keep us in business,” says Cussins, whose company oversees 10 venues across California, including The Catalyst Club in Santa Cruz, the Ventura Music Hall in Ventura and the Golden State Theatre in Monterey. “What causes independent venues to go out of business is the one in 10 shows where venues pay way too much relative to the draw and end up losing everything they made on the previous nine shows.”
Cussins made the decision to stop charging acts performing at his venues a cut of their merch sales — a standard industry practice — while watching a Jan. 24 Senate Judiciary Committee hearing about Ticketmaster. Cussins says it was members of the band Lawrence’s testimony about how much bands rely on merch money for touring that moved him to change the company’s policy: “It is money that most directly gets into the band’s pocket and the idea that we were taking away from that did not sit right with me.”
Since then, he says the decision has not hurt his business “at all.”
Still, independent venues remain concerned about what Live Nation’s new “On the Road Again” program will mean for them — how can they compete with the deals Live Nation is offering? The National Independent Venue Association (NIVA) released a statement on Wednesday (Sept. 27) following the news, 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.”
Thomas Cussins
Daniel Swan
The statement continued, “The initiative announced yesterday may seem like a move to follow the lead of some independent venues. It is not that. Instead, it appears to be a calculated attempt to use a publicly-traded conglomerate’s immeasurable resources to divert artists from independent venues and further consolidate control over the live entertainment sector. Such tactics threaten the vitality of small and medium-sized venues under 3,000 capacity, many of which still struggle to keep their doors open.”
A NIVA member since 2020, Cussins says he understands why some NIVA members may be upset that Live Nation’s policy might put pressure on their businesses. But, he adds, eliminating merch fees is a net positive for the entire live music ecosystem — one where everyone is benefiting.
“It’s difficult to operate a single venue in a market against Live Nation,” says Cussins. “Venues are low-margin businesses. I’m not here to say that no one should charge merch fees. What I am here to say is that it is my opinion that if you waive those fees, it is an overall healthier ecosystem and you will actually do better in business because you are doing something that makes the process easier.”
What was your reaction when you heard the news that Live Nation was going to waive merch fees for artists?
I was ecstatic. It’s something I’m very passionate about because it fosters a healthier concert ecosystem.
Were you worried about the financial hit Ineffable would take when you decided to eliminate merch fees at Ineffable venues?
No, because merch money is not what is going to keep us in business. What causes independent venues to go out of business is the one in 10 shows where venues pay way too much relative to the draw and end up losing everything they made on the previous nine shows. I think it’s more productive spending one’s time fostering a healthier ecosystem where everybody has a chance to make money. To me, that means not taking artists’ merch money and artists taking more door deals, where the artist has an opportunity to make the most money.
But is that realistic? For many artists, taking a door deal with no guarantee is too risky.
Correct. Some can’t take that risk. But many other artists understand they can make more money on a door deal and lower the risk the venue faces. For independent venues to be healthy, we need volume, which means we need bands to be healthy and touring and making enough money to support themselves. And the money made from merch most directly affects their ability to be out on the road and do well.
What is your reaction to the statement NIVA issued, saying the On the Road Again program is just an attempt to squeeze out indie venues?
They’re doing what they think is in the best interests of their members. We’re members of NIVA and they have done an incredible job for our business. I’m a huge fan. But my take is that merch money is not what’s going to keep these independent venues in business. What’s going to keep them in business is a healthy concert ecosystem, where we’re keeping the bands healthy and keeping them on the road with deals that are fair so that everyone can make a few bucks and eat at the table together and nobody is gouging the other person.
What is the biggest challenge facing artists on the road right now?
It is the travel costs — the price of gas, vehicle rentals, the price to pay crews. If you are going out there and you are doing the same business and your costs have increased 30%, how can you possibly make that up? You might just not tour. I know a lot of bands that have told me they were doing 80 dates a year and now they just want to do 40. They just want to pick the 40 best markets. That hurts independent small businesses. I’m seeing that firsthand. Artists that are in the prime of their career saying, “I want to work less, but each one has more meaning.” And I can’t blame them. But if they can do a longer tour and amortize those costs and play those small secondary markets, then I can be their partner on the ground in markets where I operate venues and keep my hands out of their merch money.
What advice do you have to other venues considering dropping their merch fees?
It’s not one-size-fits-all and it might not be the right solution for everyone. But I am so happy that we made that move — not only from an ethos standpoint, financially as well. It has not hurt me at all.
For some music companies, 2022 was the payoff for weathering the darkest days of the COVID-19 pandemic. When business returned that year — sometimes in record-setting fashion — these companies rewarded their executives handsomely, according to Billboard’s 2022 Executive Money Makers breakdown of stock ownership and compensation. But shareholders, as well as two investment advisory groups, contend the compensation for top executives at Live Nation and Universal Music Group (UMG) is excessive.
Live Nation, the world’s largest concert promotion and ticketing company, rebounded from revenue of $1.9 billion and $6.3 billion in 2020 and 2021, respectively, to a record $16.7 billion in 2022. That performance helped make its top two executives, president/CEO Michael Rapino and president/CFO Joe Berchtold, the best paid music executives of 2022. In total, Rapino received a pay package worth $139 million, while Berchtold earned $52.4 million. Rapino’s new employment contract includes an award of performance shares targeted at 1.1 million shares and roughly 334,000 shares of restricted stock that will fully pay off if the company hits aggressive growth targets and the stock price doubles in five years.
Live Nation explained in its 2023 proxy statement that its compensation program took into account management’s “strong leadership decisions” in 2020 and 2021 that put the company on a path to record revenue in 2022. Compared with 2019 — the last full year unaffected by the COVID-19 pandemic — concert attendance was up 24%, ticketing revenue grew 45%, sponsorships and advertising revenue improved 64%, and ancillary per-fan spending was up at least 20% across all major venue types. Importantly, Live Nation reached 127% of its target adjusted operating income, to which executives’ cash bonuses were tied.
The bulk of Rapino’s and Berchtold’s compensation came from stock awards — $116.7 million for Rapino and $37.1 million for Berchtold — on top of relatively modest base salaries. Both received a $6 million signing bonus for reupping their employment contracts in 2022. (Story continues after charts.)
Lucian Grainge, the top-paid music executive in 2021, came in third in 2022 with total compensation of 47.3 million euros ($49.7 million). Unlike the other executives on this year’s list, he wasn’t given large stock awards or stock options. Instead, Grainge, who has been CEO of UMG since 2010, was given a performance bonus of 28.8 million euros ($30.3 million) in addition to a salary of 15.4 million euros ($16.2 million) — by far the largest of any music executive.
This year, shareholders have shown little appetite for some entertainment executives’ pay packages — most notably Netflix — and Live Nation’s compensation raised flags at two influential shareholder advisory groups, Institutional Shareholder Services and Glass Lewis, which both recommended that Live Nation shareholders vote “no” in an advisory “say on pay” vote during the company’s annual meeting on June 9. Shareholders did just that, voting against executives’ pay packages by a 53-to-47 margin.
Failed “say on pay” votes are rare amongst United States corporations. Through Aug. 17, just 2.1% of Russell 3000 companies and 2.3% of S&P 500 companies have received less than 50% votes on executive compensation, according to executive compensation consultancy Semler Brossy. (Live Nation is in both indexes.) About 93% of companies received at least 70% shareholder approval.
ISS was concerned that the stock grants given to Rapino and Berchtold were “multiple times larger” than total CEO pay in peer group companies and were not adequately linked to achieving sustained higher stock prices. Additionally, ISS thought Live Nation did not adequately explain the rationale behind the grants.
To determine what Rapino, Berchtold and other executives should earn, Live Nation’s compensation committee referenced high-earning executives from Netflix, Universal Music Group, SiriusXM, Spotify, Endeavor Group Holdings, Fox Corporation, Warner Bros. Discovery, Inc. and Paramount Global. Netflix co-CEOs Reed Hastings and Ted Sarandos were paid $51.1 million and $50.3 million, respectively, in 2022. Warner Bros. Discovery CEO David Zaslov made $39.3 million in 2022 — including a $21.8 million cash bonus — a year after his pay totaled $246.6 million, including $202.9 million in stock option awards that will vest over his six-year employment contract. Endeavor CEO Ari Emanuel and executive chairman Patrick Whitesell received pay packages worth $308.2 million and $123.1 million, respectively, in 2021 thanks to equity awards tied to the company’s IPO that year (the received more modest pay of $19 million and $12.2 million in 2022).
Some companies in the peer group didn’t fare well in “say on pay” votes in 2023, though. Netflix, got only 29% shareholder approval in this year’s say-on-pay advisory vote after Hastings’ and Sarandos’ compensations both increased from higher stock option awards while the company’s stock price, riding high as COVID-19 lockdowns drove investors to streaming stocks, fell 51% in 2022. Warner Bros. Discovery’s 2022 compensation squeaked by with 51% shareholder approval.
Minutes from UMG’s 2023 annual general meeting in May suggest many of its shareholders also didn’t approve of Grainge’s compensation. UMG’s 2022 compensation was approved by just 59% of shareholders, and the company’s four largest shareholders own 58.1% of outstanding shares, meaning virtually no minority shareholders voted in favor.
UMG shareholders’ votes could be meaningfully different next year. Anna Jones, chairman of the music company’s remuneration committee, said during the annual meeting that in 2024, shareholders will vote on a pay package related to Grainge’s new employment agreement that takes minority shareholders’ concerns from the 2022 annual meeting into consideration. Grainge’s contract lowers his cash compensation, and more than half of his total compensation will come from stock and performance-based stock options.
Other companies in Live Nation’s peer group received near unanimous shareholder approval. SiriusXM’s 2022 executive compensation received 98.5% approval at the company’s annual meeting. Paramount Global’s executive compensation was approved by 96.4% of its shareholders. Endeavor didn’t have a “say on pay” vote in 2023, but a year ago, it’s sizable 2021 compensation packages were approved by 99% of voting shareholders.
As the radio industry came back from pandemic-era doldrums, two iHeartMedia executives — Bob Pittman, CEO, and Richard Bressler, president, CFO and COO — were among the top 10 best-paid executives in the music industry. It was new employment contracts, not iHeartMedia’s financial performance, that put them into the top 10, however. Both executives received performance stock awards — $6.5 million for Pittman and $6 million for Bressler — for signing new four-year employment contracts in 2022. Those shares will be earned over a five-year period based on the performance of the stock’s shareholder return. Neither Pittman nor Bressler received a payout from the annual incentive plan, however: iHeartMedia missed the financial targets that would have paid them millions of dollars apiece. Still, with salaries and other stock awards, Pittman and Bressler received pay packages valued at $16.3 million and $15.5 million, respectively.
Spotify co-founders Daniel Ek and Martin Lorentzon once again topped the list of largest stockholdings in public music companies. Ek’s 15.9% stake is worth nearly $4.8 billion while Lorentzon’s 11.2% stake has a market value of nearly $3.4 billion. Both Ek and Lorentzon have benefitted from Spotify’s share price more than doubling so far in 2023. In September 2022, the inaugural Money Makers list had Ek’s stake at $3.6 billion and Lorentzon’s shares at $2.3 billion.
The billionaire club also includes No. 3 HYBE chairman Bang Si-hyuk, whose 31.8% of outstanding shares are worth $2.54 billion, and No. 4 CTS Eventim CEO Klaus-Peter Schulenberg, whose 38.8% stake — held indirectly through his KPS Foundation non-profit — is worth $2.25 billion. They, too, have benefitted from higher share prices in 2023. Last year, Bang’s stake was worth $1.7 billion and Schulenberg’s shares were valued at $2.1 billion.
These top four shareholders and three others in the top 10 have one important thing in common — they are company founders. At No. 5, Park Jin-young, founder of K-pop company JYP Entertainment, owns a $559 million stake in the label and agency he launched in 1997. Another K-pop mogul, No. 8 Hyunsuk Yang, chairman of YG Entertainment, owns shares worth $199 million in the company he founded in 1996. And No. 9 Denis Ladegaillerie, CEO of 18-year-old French music company Believe, has a 12.5% stake worth $112.7 million.
Live Nation’s Rapino again landed in the top 10 for amassing a stockholding over a lengthy career, during which he has helped significantly increase his company’s value. Rapino, the only CEO Live Nation has ever known, took the helm in 2005 just months before the company was spun off from Clear Channel Entertainment with a market capitalization of $692 million. Since then, Live Nation’s market capitalization has grown at over 20% compound annual growth rate to $19.1 billion. Rapino’s 3.46 million shares represent a 1.5% stake worth $291 million.
Selling a company that one founded is another way onto the list. Scooter Braun, CEO of HYBE America, has a 0.9% stake in HYBE worth $69.8 million. That’s good for No. 10 on the list of executive stock ownership. Braun, HYBE’s second-largest individual shareholder behind chairman Bang, sold his company, Ithaca Holdings — including SB Projects and Big Machine Label Group — to HYBE in 2021 for $1.1 billion.
These rankings are based on publicly available financial statements and filings — such as proxy statements, annual reports and Form 4 filings that reveal employees’ recent stock transactions — that publicly traded companies are required by law to file for transparency to investors. So, the list includes executives from Live Nation but not its largest competitor, the privately held AEG Live.
Some major music companies are excluded because they are not standalone entities. Conglomerates that break out the financial performance of their music companies — e.g., Sony Corp. (owner of Sony Music Entertainment) and Bertelsmann (owner of BMG) — don’t disclose compensation details for heads of record labels and music publishers. Important digital platforms such as Apple Music and Amazon Music are relatively small parts of much larger corporations.
The Money Makers executive compensation table includes only the named executive officers: the CEO, the CFO and the next most highly paid executives. While securities laws vary by country, they generally require public companies to named executive officers’ salary, bonuses, stock awards and stock option grants and the value of benefits such as private airplane access and security.
And while Billboard tracked the compensation of every named executive for publicly traded music companies, the top 10 reflects two facts: The largest companies tend to have the largest pay packages and companies within the United States tend to pay better than companies in other countries.
The list of stock ownership is also taken from public disclosures. The amounts include common stock owned directly or indirectly by the executive. The list does not include former executives — such as former Warner Music Group CEO Stephen Cooper — who are no longer employed at the company and no longer required to disclose stock transactions.
Live Nation, the world’s largest concert promoter, is launching an ambitious new program to improve the lives of touring musicians and cut down on the growing costs traveling artists facing criss-crossing the country.
Today, the concert giant has announced the launch of “On the Road Again,” a new program inspired by legendary singer/songwriter Willie Nelson to support developing artists and their road crews. The program — which has no expiration date and is expected to save artists tens of millions per year — tackles the growing costs of travel expenses and the ability of artists to make money through merch sales.
“Touring is important to artists so whatever we can do to help other artists, I think we should do it. This program will impact thousands of artists this year and help make touring a little bit easier,” said Nelson, who provided his famous hit song On the Road Again as the anthem for the program.
Starting today, all acts playing Live Nation owned and operated clubs, from headliners to support acts will receive a $1,500 gas and travel cash stipend per show to all headliners and support acts, on top of nightly performance compensation.
As part of the program, the company’s clubs will no longer charge merchandise selling fees, allowing artists to keep 100% of merch profits. Many artists rely on merch sales to generate cash for the band while they’re on the road. In January, Ineffable Music Group became the first company to wave merch fees for the companies 10+ venues and showrooms. The decision by Live Nation to waive these fees will likely lead to more cash in the hands of touring artists.
“Touring is a crucial part of an artist’s livelihood, and we understand travel costs take one of the biggest bites out of artists’ nightly profits,” a press release from Live Nation reads. “By helping with these core expenses, we aim to make it easier for artists on the road so they can keep performing to their fans in more cities across the country.”
The On the Road Again also includes financial bonuses to local promoters that help execute at shows as well as tour reps and venue crew members that have worked over 500 hours in 2023. On the Road Again also includes $5 million to Crew Nation, a fund created during the pandemic to support crew across the industry facing unforeseen hardship.
“Delivering for live artists is always our core mission,” said Michael Rapino, President and CEO of Live Nation in a statement to Billboard. “The live music industry is continuing to grow and as it does, we want to do everything we can to support artists at all levels on their touring journey especially the developing artists in clubs. Like Willie says, this is all about making it a little easier for thousands of artists to continue doing what they love: going out and playing for their fans.”
Conpany officials added that On the Road Again is “a true collaboration that draws on insights from Nelson’s years on the road as well as feedback from touring artists, their teams and venue operators to help support day to day life on tour. All benefits from On the Road Again are being provided directly from the venue’s existing earnings, with no increases to consumers.”
For more information on the program and a list of participating venues, visit roadagain.live
Courtesy Photo
The management division of Kygo‘s Palm Tree Crew has partnered with Live Nation. The new partnership is intended to expand opportunities for Palm Tree Crew Management’s dance/electronic-focused roster, which currently includes Kygo, Dean Lewis, Gryffin, Sam Feldt, Frank Walker, Forester, Thomas Jack and Petey Martin. Palm Tree Crew Management was founded in 2018 by Kygo (born Kyrre […]
Of all Jimmy Buffett‘s accomplishments, from classic hits such as “Margaritaville” and “Changes In Latitudes, Changes In Attitudes” to building a billion-dollar travel-and-lifestyle empire, one of the biggest was an unprecedented, decades-long amphitheater deal in which he received a whopping 105% of the gross ticket receipts. This anti-mathematical trick stunned the concert business.
“Early in our careers, we would all whisper about Buffett’s rumored deal. Could he possibly be getting not just the lion’s share of the show profits, but all of the box-office gross? Or in some cases more than the box-office gross? What?” asks Fielding Logan, a Q Prime manager who represents country star Eric Church. “Like a mythical white whale, we’ve been chasing that deal ever since.”
How did Buffett, who died Friday at 76, pull off this legendary deal, which several concert-industry sources confirm was in place through his very last amphitheater tours?
In the late 1990s, when SFX Entertainment bought out promoters around the country, the new concert-business giant offered touring stars huge payments to anchor its summer-amphitheater lineup — and avoid losing them to rival companies. Back then, artists were asking — and receiving — 90% of the net ticket sales after expenses, leaving 10% to the promoter.
Buffett took this trend to a new level on his annual summer runs, which drew more than 3.9 million fans and grossed $215.4 million over 196 shows in the 2000s, according to Billboard Boxscore. “Here’s the thing about Jimmy: 90-10 wasn’t good enough for him. He started demanding 105%! All of the gate plus 5% of the gross,” Barry Fey, the late Denver promoter who competed with SFX at the end of his career, wrote in his 2011 book Backstage Past.
Promoters agreed, knowing they could take a cut of ancillary revenues, like parking, food and ticket service charges and — especially with Buffett’s hard-partying Parrotheads — alcohol. “It worked out for me and the other promoters because of beer sales,” Fey wrote.
In 2000, Clear Channel Communications bought SFX, then spun off the concert-promotion business into a new company known as Live Nation — which maintained his deal, sources say. So, for example, in 2005, when Buffett’s show at Arrowhead Pond (now the Honda Center) in Anaheim, Calif., made $1.13 million at the box office, according to Billboard Boxscore, Buffett would have taken home roughly $1.136 million.
Buffett, who toured through spring 2023, set a financial precedent that younger stars, such as country singer Kenny Chesney, were able to replicate, according to sources. “Jimmy was a key artist in establishing and solidifying the amphitheater model,” says Brock Holt, a longtime Nashville promoter who is now a touring consultant, “and opened the doors for a higher financial return for artists.”
“He was the only one who had the leverage to do it. He toured perennially and did the same amount of business each time. The Parrotheads came out. It was a yearly ritual,” says Randy Phillips, former CEO of promoter AEG Live, and now a consultant for Silver Lake, an investment group whose portfolio includes Madison Square Garden Sports and Endeavor. “He was the anchor to Live Nation’s schedule so it was really critical. He used that to negotiate.”
Buffett’s longtime touring reps, including Live Nation, attorney Joel Katz and agent Howard Rose, did not respond to requests for comment.
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Travis Scott is going back on the road, as he’s announced a new tour almost two years after the Astroworld tragedy.
The UTOPIA rapper broke the news through a post made on Tuesday (August 29th) through his Instagram account. The caption to the post bearing an NSFW image was brief, beginning with “UTOPIA Tour” and relating that tickets sales for the tour would begin at 10 A.M. on Thursday (August 31st) before adding his website and ending off with “Hsbsdbbddbsbsnsjsbdnd”.
The UTOPIA Circus Maximus Tour (inspired by his recent Rome concert) will kick off in the fall, beginning at the Spectrum Center in Charlotte, North Carolina on October 11th. It will then cover most of North America, with the largest headlining date projected to be at the SoFi Stadium in Los Angeles, California on November 5th. The tour will conclude at Scotiabank Arena in Toronto, Canada on December 29th. Tickets can be purchased at the website, and Live Nation said that $2 from each sale will be donated to Scott’s Cactus Jack Foundation, a nonprofit aimed towards enriching the lives of youths in the Houston area.
One noticeable feature of the tour is that while there are two stops in Texas (Dallas on October 17th and Austin on November 21st), there is no tour date in Houston, Travis Scott’s hometown. Sylvester Turner, the mayor of Houston, had previously issued a statement earlier this month saying that Scott and the promotion team had “booked the Toyota Center for a concert in October.” Mayor Turner also said that the city expected the concert to be like others that have occurred there. “Before (Tuesday’s) announcement, Toyota Center representatives convened meetings with public safety officials and the city’s special events office. They will continue working together to ensure this concert’s safety, not unlike the thousands of concerts held at Toyota Center each year,” it read.
The tour announcement with Live Nation comes almost two years after the tragedy at the Astroworld Festival which occurred in November 2021 where 10 people died after a massive crowd crush. Earlier this year, a grand jury in Houston decided that Scott as well as Live Nation and other organizers would not be held criminally responsible for those deaths at Astroworld. They are still contending with civil lawsuits from over 400 individuals stemming from the incident.
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Live Nation Entertainment continued to profit from the red-hot live music market in the second quarter, beating earnings expectations with $5.6 billion in revenue — up 27.1% year over year and coming in a whopping $680 million over expectations. The company generated earnings per share of $1.02, which was $.40 higher than expected.
The financial results, which marked Live Nation’s strongest second quarter ever, also saw the company’s operating income rise 21% year over year to $386 million this quarter, while adjusted operating income was up 23% to $590 million and operating cash flow came in at $491 million, a 41% increase. The earnings report continues an upward trend at the company, indicating that 2023 will again set a revenue record for the concert promotion giant.
“We believe this is a time on a global basis when live will see incredible growth for years to come,” Live Nation chief executive Michael Rapino said on an earnings call after the company’s financial results were released Thursday (July 27).
The report noted that a record number of fans have attended Live Nation concerts this year, with 117 million tickets sold year-to-date for Live Nation shows — an increase of 20% year-over-year. Ticketmaster clients reported sales of 151 million fee-bearing tickets sold so far this year, with Ticketmaster on track to sell 300 million fee-bearing tickets in 2023. The company also reported a double-digit increase in sponsorship revenue and $4.3 billion in event-related deferred revenue, up 37% over last year, while double-digit attendance growth is expected next quarter.
In terms of venue size, stadiums saw the most growth, with attendance up 28% to 8.0 million fans, led by Europe and Asia Pacific. Arenas saw the second-highest growth rate, up 19% to 10.7 million fans, largely from Canada, Asia Pacific and Latin America. Finally, festivals grew 14% to 4.5 million fans, driven by global demand across all markets.
Capital expenditures at Live Nation totaled $158 million year-to-date, driven by investments in on-site venue enhancement and the expansion of the company’s venue portfolio. The 2023 capital expenditures forecast remains at $450 million, two-thirds of which is allocated for revenue-generating projects.
Despite the rosy earnings report, shares were slightly down Thursday after close to $96.93, marking a drop of less than 1%.
Below is a summary of 2023 Q2 results:
Total revenue: $5.6 billion, up 27% from 2022 Q2
Adjusted operating income: $168.1 million, up 37% from 2022 Q2
Concert revenue: $4.6 billion, up 29% from 2022 Q2
Ticketing revenue: $709.3 million, up 23% from 2022 Q2
Sponsorship and advertising: $302.9 million, up 15% from 2022 Q2
North American concerts: 8,111, up .67% from 2022 Q2
International concerts: 4,130, down 8% from 2022 Q2
North American fans: 18.5 million, up 6% from 2022 Q2
International fans: 18.6 million, up 13% from 2022 Q2
Fee-bearing tickets: 78.9 million, up 10% from 2022 Q2
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Live Nation is treating concertgoers to the ultimate summer promo: four tickets for $80. The Summer’s Live sale starts Wednesday (July 19) and will go until Aug. 1 or until tickets sell out. This year includes a stacked lineup of artists with upcoming tours and concerts.
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Yes, you read that right. You can really get four tickets to any qualifying concerts for only $80 total.
Some of the musicians you can get tickets for are the Jonas Brothers, Jelly Roll, 5 Seconds of Summer, Keith Urban, Maroon 5, Snoop Dog, Big Time Rush, Dominic Fike, Neon Trees, Chelsea Handler, Sam Hunt, Young the Giant, Counting Crows, Rod Stewart and many, many more. The promo isn’t live yet, but you can add it to your calendar here to ensure you get $80 concert tickets the second the deal starts. The last thing you want is to see the dreaded “sold out” message.
Want tickets earlier? Rakuten is offering members the ability to skip the line and purchase tickets during an exclusive presale on Tuesday (July 18). Click here to sign up and learn more or click the buy button below.
Rakuten Summer’s Live Presale
In order to get early access to the deal, you’ll need to sign up for Rakuten, then you’ll be able to take advantage of the four for $80 concert tickets deal.
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