lobbying
Live Nation chief executive Michael Rapino was in Washington D.C. over the weekend, hosting his own party around the White Correspondents Dinner on Saturday.
The Axios After Hours Presented by Live Nation party on Saturday was held at the National Building Museum with media partner Axios after the White House Correspondents dinner ended and included a private performance from rising country star Lainey Wilson.
Rapino, who received $139 million in salary and stocks last year, according to a SEC fillings, isn’t a major political donor and hasn’t appeared at a major congressional hearing in a decade. But with the Live Nation-owned Ticketmaster coming under fire from lawmakers in recent years over long-standing concerns about anti-competitor business practices and the Taylor Swift ticketing crash in November, Rapino’s presence capped off a frenzied lobbying effort over the last two years to build a political base for the company.
Financially, Live Nation had its best year ever in 2022, posting a record $16.7 in revenue last year and $732 million in income. But the growing music conglomerate has largely been politically inactive in the years following its 2010 merger with Ticketmaster.
That changed in 2019 when the Department of Justice recommended extending a consent degree governing the 2010 merger. Last election cycle, Live Nation spent $1.4 million lobbying Congress, more than it has ever spent before. That spending is expected to continue unabridged in 2023 as Live Nation continues to lobby for ticketing reform legislation to curb illegal scalping activities, floating its own FAIR ticketing proposal as as a possible model for legislation.
Live Nation president/CFO Joe Berchtold might have been the sole defender of his company’s 2010 merger with Ticketmaster at a Senate Judiciary Committee hearing in January, but behind the scenes, he wasn’t alone.
Advising Berchtold and managing key relationships on Capitol Hill is a small army of over 30 lobbyists, deployed to defend the company from growing criticism by senators like Amy Klobuchar, D-Minn., and Richard Blumenthal, D-Conn. Klobuchar, who serves as the chair of the Senate Judiciary Subcommittee on Competition Policy, Antitrust and Consumer Rights, has made repeated calls to the Department of Justice to investigate Ticketmaster and break up the company if any wrongdoing is uncovered during a DOJ review of the consent decree it created to foster competition in ticketing. That review is expected to wrap up soon.
While Live Nation’s lobbying spending has been historically low for a company of its size and domi- nance, that’s changing. Last year, the company spent nearly five times as much on lobbying as it has in the past, according to data from Open Secrets, which uses public records to track such spending. From 2012 to 2018, Live Nation spent an average of $225,000 annually to lobby federal officials. In 2022, its annual lobbying expenses had increased to $1.1 million.
The company’s agendas include defending criticism regarding Ticketmaster’s handling of the Swift presale last November.
One of those insiders is Seth Bloom, a former longtime general counsel for the Senate’s antitrust subcommittee and advisory board member for the American Antitrust Institute. Another is Jonathan Becker, a former chief of staff and chief counsel to Klobuchar who now serves as a partner at law firm Mayer Brown and represented a dozen big-name clients in 2022, including Meta, Microsoft and Phillip Morris.
Live Nation now spends significantly more than its competitors in the touring sector. Last year, enter- tainment conglomerate AEG spent $140,000 on federal lobbying, according to Open Secrets, while secondary-market ticketing competitor SeatGeek spent $170,000 and Viagogo, the British company that bought StubHub in 2020, spent $140,000. Live Nation partner company Oak View Group spent $570,000 on lobbying, while Spotify, which has rolled out a new ticketing offering for concert promoters and is hoping to broaden its reach within the live space, spent $710,000.
Live Nation could spend even more this year as it ramps up efforts to exit the consent decree once the five year extension ends in 2024. The company now has more than seven lobbying firms working for it on issues that include ticketing, event safety and Federal Aviation Administration rules on the use of drones at events.
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