LOS ANGELES (CelebrityAccess) — The federal antitrust lawsuit towards Stay Nation underscores the corporate’s shut relationship with Oak View Group (OVG), the venue administration and advisory firm launched by former Stay Nation chairman Irving Azoff and Tim Leiweke, the previous President and CEO of Anschutz Leisure Group, Stay Nation’s main U.S. rival.

When Oak View Group launched in 2015, it appeared poised to develop into a significant competitor to Stay Nation by reserving prime artists for its managed arenas and different main live performance venues throughout the U.S., difficult Stay Nation’s dominance in main excursions. The launch of OVG led Stay Nation to explain the corporate as one in every of its “Largest Competitor Threats” shortly after OVG’s inception, in keeping with the federal lawsuit.

Nonetheless, that potential rivalry didn’t materialize, and in keeping with the Division of Justice (DOJ), this was not a coincidence.

The DOJ alleges that emails between senior executives of each corporations reveal a detailed and coordinated relationship. OVG executives described the corporate as a “pimp” and “hammer” for Stay Nation, serving to to convey venues into the Stay Nation/Ticketmaster fold.

“I at all times defend you on rebates, promoter place, ticketing,” Tim Leiweke informed Stay Nation CEO Michael Rapino in a single communication cited by the DOJ lawsuit.

Moreover, the federal lawsuit alleges that Oak View Group successfully ceded the live performance promotion enterprise to Stay Nation, whereas the promoter large backed away from the world house to keep away from encroaching on OVG’s enterprise.

“It has been our coverage to remain on the sidelines in terms of shopping for and particularly selling tour dates as we’re cognizant to not compete with our companion Stay Nation on this facet of the enterprise,” an Oak View Group Senior Vice President informed a colleague by way of e mail, in keeping with the federal government’s lawsuit.

The DOJ cites a 2016 incident wherein the 2 corporations labored to keep away from competitors in negotiations with artist representatives over a possible tour.

“What’s up? We’ve got carried out his [touring] and Vegas[.] Let’s ensure that we don’t let [the artist agency] begin enjoying us off,” Rapino purportedly informed Oak View Group, with OVG’s Tim Leiweke responding, “Our guys bought a bit forward. All know we don’t promote and we solely do excursions with Stay Nation.”

One other incident cited by the DOJ in 2022 adopted an analogous theme.

“Who could be so silly to do that and play into [the artist agent’s] arms?” Rapino reportedly wrote in an e mail to colleagues at Oak View Group. OVG CEO Tim Leiweke, responded, stating, “We’ve got by no means promoted with out you. Gained’t,” and later added, “More than pleased to do these offers by means of LN as I’ve at all times been aligned,” and “I by no means need to be rivals,” in subsequent emails, in keeping with the DOJ.

The DOJ’s go well with additionally claims that Oak View Group helps steer venues to Stay Nation’s Ticketmaster platform. In keeping with the go well with, OVG projected that it could transition at the very least 22 venues to Ticketmaster over the subsequent 4 years.

Oak View Group has not been accused of wrongdoing and isn’t a celebration to the lawsuit.

In response to the federal antitrust lawsuit, Stay Nation’s Dan Wall, Government Vice President of Company and Regulatory Affairs, addressed the corporate’s relationship with Oak View Group in a prolonged assertion launched on Thursday.

“The criticism makes two principal claims regarding Stay Nation’s relationship with the Oak View Group (OVG), a venue administration firm. The primary is disingenuous, as it’s premised on the concept OVG was a severe potential rival to Stay Nation in live performance promotion. OVG owns and manages venues. It has by no means been a live performance promoter, nor aspired to be one—which is exactly the purpose made within the e mail DOJ quotes. DOJ’s declare is predicated on two incidents wherein Stay Nation and OVG have been discussing what to do when an OVG venue wished to e-book an occasional present itself on a darkish evening. To painting that as an settlement to not compete in live performance promotion is farcical—notably when the criticism defines the related promotions market as a marketplace for regional or nationwide excursions and explicitly disavows the suggestion that ‘self-supply’ of exhibits from venue homeowners is a part of that market.

Regardless, OVG’s conduct as a venue operator is absolutely per each main enviornment and stadium within the nation—they should have an in-house booker who helps fill in any other case darkish nights, however they’ve little interest in systematically taking over the chance of ensures that might be within the hundreds of thousands of {dollars} for a present or tens of hundreds of thousands of {dollars} for a tour.

DOJ additionally claims it was anticompetitive for Ticketmaster to compete for and win a ticketing contract OVG supplied. The idea is that the contract gave Ticketmaster an unfair benefit in securing the enterprise of unbiased venues that have been managed by OVG as a result of it creates monetary incentives for OVG to ‘advocate for’ Ticketmaster. However there’s nothing remotely anticompetitive about that. Business preparations that contain incentive or advertising funds are frequent all through this business (and plenty of others). Venue administration corporations like OVG and ASM are ready to advocate for quite a lot of service suppliers, together with however not restricted to ticketing corporations. So there’s competitors for the enterprise alternatives at each the venues they personal, which they management, and the venues they handle, which they don’t management however can doubtlessly affect. Ticketmaster competed and received the contract on the deserves as a result of OVG decided it was the most effective ticketing system obtainable.”

(CelebrityAccess) — Rapper Sean Kingston is dealing with felony expenses in Florida following his arrest for fraud on Thursday.

In line with the Related Press, the Broward County Sheriff’s Workplace stated Kingston was arrested in California on Thursday, primarily based on a warrant issued in Florida. The small print of the allegations leveled towards Kingston weren’t instantly obtainable.

Earlier Thursday, investigators in Broward County additionally arrested Kingston’s 51-year-old mom, Janice Turner, throughout a raid of the rapper’s residence in South Florida. The Broward County Sheriff’s Workplace web site exhibits that Turner is dealing with a number of expenses, together with grand theft, try to realize property value greater than $50,000 by fraud, and fraudulent use of ID with out consent.

The Related Press reported that among the expenses stem from a failed cope with Ver Ver Leisure, who allege in a civil lawsuit that Kingston contacted the corporate in 2023 about buying a 232-inch and having it put in in his Florida dwelling.

As a part of the deal, Ver Ver alleges that Kingston bargained for a decrease down cost by promising to do promotional work for the corporate, together with a business with fellow music star Justin Bieber. Nevertheless, Ver Ver claims that whereas the tv was put in, the promised promotional work didn’t materialize.

Kingston, whose actual identify is Kisean Paul Anderson, is at present on probation in Florida associated to an interstate trafficking in stolen items felony cost from 2023, in line with Florida’s Division of Corrections.

Robert Rosenblatt, an lawyer representing Kingston and his mom, informed the Related Press that he’s conscious of among the allegations his shoppers are dealing with.

“We stay up for addressing these in court docket and are assured of a profitable decision for Shawn and his mom,” Rosenblatt informed the AP.

It’s not going to make ticket costs any decrease.

Assuming that Stay Nation and Ticketmaster are damaged up, or ticketing isn’t unique at venues. Ticket costs don’t have anything to do with Ticketmaster. If something, a treatment will assist different promoters, who will be capable to take part in ticket resale by utilizing one other platform. However for those who assume any change goes to trickle all the way down to the buyer, you’re delusional.

This isn’t as unhealthy because the Amazon Kindle motion, which resulted within the value of e-books GOING UP! Sure, below the aegis of aiding the buyer, the federal government f*cked the buyer. As an alternative of e-books being below ten bucks, they jumped 5 to 10 {dollars} when the mannequin was modified to an company format pioneered by Apple’s iBooks. And all these years later…iBooks has a sliver of the general e-book market. Amazon’s ecosystem was simply too good. And the Seattle firm had a primary mover benefit. You possibly can obtain e-books to your Kindle. Apple didn’t have a competing gadget. Though you possibly can obtain e-books to your iPad, the place you’d have an almost indistinguishable expertise between Apple and Amazon. Truly, I’d say the iBooks app on the iPad is only a tiny bit higher than the Kindle app on the iPad, however the enchancment is almost irrelevant. It’s akin to the battle between VHS and Beta. Though on this case, Beta, i.e. Apple, got here later. Backside line, folks now had an possibility to purchase e-books for a similar value at Apple and nearly nobody did. I don’t see Apple even selling iBooks anymore.

The silver lining was reserved for publishers, who needed the e-book lifeless. They didn’t like the truth that Amazon bought books for under wholesale, to construct a enterprise, to develop the general guide enterprise, regardless of paying wholesale value to the writer. E-books in lots of instances ended up costing as a lot because the bodily guide, and nobody may fathom that, similar to they’ll’t fathom all of the charges that include buying a live performance ticket.

All these charges exist so as to have a pot of cash that acts can’t fee, so the promoter and the ticket firm can revenue. And the soiled little secret is the acts even share within the charges whereas in lots of instances railing in opposition to them.

It’s good for the acts. They offer the impression that they’re on the followers’ aspect, in opposition to evil Ticketmaster, when in reality they love passing the blame for prime ticket costs, which they need and authorize, on to another person.

So that you hate the charges. With out the charges, there aren’t any reveals. Interval.

So let’s simply bake the charges into the general ticket value. Which Stay Nation has begun to do. Let’s be clear, it’s the acts who’ve resisted all-in ticket pricing as a result of as soon as once more, they wish to make it seem like it’s not their fault that the ticket value is excessive.

So let’s say we do away with unique constructing contracts. Then the constructing gained’t have that assured cash that goes straight to its backside line. That means they’re going to should get it someplace else, in any case it’s a enterprise. That means the cash’s simply going to be shifted round, however it can all be behind the scenes, and also you’ll find yourself paying the identical. Not a penny much less.

And also you hate the so-called Taylor Swift ticketing “debacle.” I hate to inform you this, however Ticketmaster is one of the best at what it does. Solely Ticketmaster has the computing energy to promote this many tickets. As for the glitches… Blame them on the bots, the secondary market.

And the secondary market has accomplished a genius job of selling. Convincing customers and lawmakers that followers personal the ticket and might do no matter they need with it. Sounds good in precept, however the finish result’s tickets within the secondary market are oftentimes astronomically priced. And the act doesn’t share in a penny of this uplift. So, acts are charging increasingly, what the tickets are actually price, so that they seize that cash. And the buyer complains. The identical shopper that likes the secondary market as a result of they know in the event that they’re prepared to pay the value, they’ll purchase a ticket on the final minute to any present.

If you wish to deal with excessive ticket costs, you’ve acquired to handle the secondary market. That may be a greater effort for the DOJ. However the unsophisticated public incorrectly believes Ticketmaster is chargeable for excessive ticket costs and due to this fact have to be hobbled.

As soon as once more, if one other promoter desires to make use of a unique ticketing firm, even their very own… That provides them many benefits. Primarily due to the uplift on resale. Sure, go to the Ticketmaster web site and also you’ll see that many tickets for reveals are being resold by the first purchaser. And Ticketmaster takes a share of that, even when it’s not a Stay Nation present. And the act decides whether or not to activate Ticketmaster resale or not. However there’s an enormous pool of cash there, and third occasion promoters are indignant they don’t have entry to it.

As for Stay Nation routing excursions to buildings the place they’ve ticketing contracts… That is hazy. They’ve already been slapped by the federal government as soon as for leveraging this relationship. Nevertheless it makes good enterprise sense. If in case you have the choice between two buildings, why not select your personal, the place you may make extra money? Stay Nation says it isn’t doing this, however how can one show this? You’ll be able to take a look at each date on each tour and it nonetheless may not be clear.

But when Stay Nation places a present in a constructing that has an unique contract with Ticketmaster, the corporate finally ends up making extra money.

Let’s be very clear, live performance promotion is a license to lose cash. Ensures are massive and margins are slim, which is why there’s not an enormous indie sphere. A nasty present or two can put you out of enterprise, whereas Stay Nation can endure a loss. Additionally, Stay Nation pays. It’s not the wild west, for those who make a take care of Stay Nation you’ll get your cash, in contrast to within the outdated days of money and weapons and…

So, if Stay Nation doesn’t have the benefit of Ticketmaster, that may make it a bit simpler for third events to bid for expertise. However Stay Nation can oftentimes nonetheless pay extra, due to sponsorship and different income streams. Some acts would possibly shift their excursions to a 3rd occasion, however that’s assuming the third occasion can pay them as a lot and is nearly as good. And for those who’re a growing act, Stay Nation would possibly even make you a deal for the longer term. You need to use that cash to your benefit whilst you develop your online business. The ticket value isn’t the one income stream. There’s merch, meals, parking… Nearly nobody goes to a present and pays for a ticket and nothing extra.

So, antitrust legislation is about making change to the benefit of the buyer. Nothing the DOJ can do will decrease costs for customers, NOTHING! Since you, the buyer, are prepared to pay the excessive costs to see your favourite acts. One individual would possibly keep at residence, however one other will pony up, in lots of instances even when they’re not wealthy. In any case, IT’S THEIR FAVORITE ACT!

So there will probably be hosannas within the market on Thursday, or each time the DOJ recordsdata their motion. Lastly, somebody is standing as much as Ticketb*stard. Nevertheless it’s a pyrrhic victory. As a result of Ticketmaster isn’t chargeable for excessive costs, not in anyway. As a matter of truth, Ticketmaster takes a de minimis quantity of the general charges.

As for charges which can be equal to the face value… I imply come on, you assume you’ll be able to see these main acts for twenty 5 or fifty bucks? It doesn’t make monetary sense. The act makes it seem like they’re doing the fan a strong and it’s Ticketmaster’s fault costs are excessive. However that’s full b.s. As soon as once more, with out the charges there isn’t a present, they pay for the promoter, the constructing, the staffing…the act doesn’t carry any of those with it.

So we now have to see what the DOJ is asking for. And no matter it’s, there’s no assure they’ll win. Stay Nation may decide on essentially the most advantageous phrases attainable or it may combat the motion in court docket, which may take years!

And in reality, ticketing is a low margin enterprise. Don’t anticipate a plethora of latest opponents to Ticketmaster, it wouldn’t be price efficient, there’s simply not sufficient cash in it.

So, there are true benefits to 3rd half promoters if Ticketmaster is separated from Stay Nation, or unique contracts with buildings are prohibited, however no benefits to the general public in anyway.

And the DOJ’s monitor file isn’t good. They’ll file, however it doesn’t imply they’ll win. Rulings should not based mostly on emotion, however legislation, statutes. There are burdens of proof, can the DOJ attain them?

If you’d like decrease ticket costs deal with the secondary market. Enable the act and promoter to regulate the ticket versus the fan. However the fan doesn’t need this. The fan desires to have the ability to resell their ticket and make a revenue. Somebody’s acquired to endure so as to carry ticket costs down. And Stay Nation and Ticketmaster should not the perpetrator.

Try Bob’s current look on CNBC’s Final Name: (begins at 5m)

https://app.criticalmention.com/app/#clip/view/e5ac0671-1a91-46e5-a181-1372c95887c9?token=9aa51495-6aa6-463e-a087-bf59ccfb92dd