Did Live Nation punish a venue by taking Billie Eilish away? | The Verge

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Did Live Nation punish a venue by taking Billie Eilish away?

In the world of concert ticketing, even a winky face may seem like a threat.

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John Abbamondi had orders to let the CEO of Ticketmaster down easy.

In April 2021, Abbamondi was the CEO of BSE Global, the company that ran Brooklyn arena the Barclays Center. BSE Global’s existing Ticketmaster contract would expire at the end of September, and Abbamondi and his team had evaluated proposals from Seat Geek, AXS, and Ticketmaster. The economics of Ticketmaster offer, according to Abbamondi, “was nowhere near as good as the other two.” Seat Geek’s technology was “superior” to Ticketmaster’s on balance, on top of better financial terms including an equity stake in the company, the arena decided. It clinched their decision to go with a newer, smaller player in the field.

When Abbamondi called to break the news to Michael Rapino, the Live Nation Entertainment CEO, the meeting became tense — and a recording of it came back to haunt Rapino in this month’s Live Nation-Ticketmaster monopoly trial. Abbamondi was one of two witnesses who took the stand Wednesday, alongside Mitch Helgerson, the chief revenue officer for the Minnesota Wild hockey team. Both men said that when they considered switching their venues’ ticketing platform from Ticketmaster, executives there threatened them with the loss of vital Live Nation-promoted concerts. It’s the behavior, the Justice Department and 40 state and district attorneys general say, of a monopolist — a charge Live Nation-Ticketmaster denies.

Abbamondi, identifying the voices on the 2021 call to a Manhattan jury Wednesday, said that “the nervous guy was me and the angry guy was Michael.” The few minutes played in court captures an exchange that went “sideways,” as Abbamondi put it, when he tried to thread a delicate needle: rejecting Ticketmaster’s services while trying to hold its parent company Live Nation to a separate contract promising to fill Barclays Center with concerts. At one point, Rapino dropped an F-bomb while discussing his frustration over a contractual dispute. He told Abbamondi he believed they were never planning to renew with Ticketmaster in the first place.

Rapino reminded Abbamondi about the new UBS Arena in Queens, which could draw more Live Nation-promoted shows away from Barclays. Though Ticketmaster theoretically operates separately from Live Nation, Abbamondi took this as a “not-so-veiled” threat — cut off the left arm, and the right arm would swing back. Abbamondi hung up feeling like he’d failed to “do my job there, which was to land the plane smoothly.”

The venue “saw a dramatic decline in Live Nation shows that were booked at the arena”

Abbamondi still signed the deal with Seat Geek, which began in October 2021. Then, he testified, the venue “saw a dramatic decline in Live Nation shows that were booked at the arena.” Artists were just beginning to fill stadiums again after the start of the covid pandemic, including Billie Eilish, who’d had to cancel shows in New York venues including Barclays in 2020. Normally, Abbamondi would have expected Live Nation to rebook her show there next time she was on tour. But when she began touring again in 2021, she booked at the new venue Rapino had warned about — the UBS Arena. When Barclays asked about it, they were told it was the “artist’s decision.” Other promoters, he said, hadn’t reduced their bookings at Barclays by nearly as much.

In 2022, mere months into the Seat Geek contract, Abbamondi was fired. Less than a year later, Barclays announced it was going back to Ticketmaster.

Ticketmaster, in the witnesses’ telling, wasn’t the best option for a ticketing vendor, but Live Nation’s power as a concert promoter forced their hand. In the case of the Minnesota Wild, which played at the then-Xcel Energy Center in St. Paul, Helgerson said the fear of losing Live Nation shows was a large driver behind its decision to stick with Ticketmaster — even though it found it would make $1 million a year more switching to Seat Geek.

The arena was already engaged in tight competition for concerts with the Target Center across the river in Minneapolis, a similarly-sized venue. So when the Wild kicked off negotiations over renewing its contract with Ticketmaster in 2018, the ticketing service knew how to hit them where it would hurt. When the Wild staff mentioned they were planning to consider a proposal from Seat Geek too, a Ticketmaster executive told them that Live Nation could move all of their shows to the Target Center if they switched ticketing vendors, Helgerson testified. “We took it as a credible threat,” he said. “Losing those shows would be almost catastrophic to our organization.”

To ease the risk, Seat Geek offered what it called “Live Nation retaliation insurance” — a promise to compensate the arena for concerts booked at the Target Center on dates Xcel had open. Seat Geek offered the arena a higher upfront bonus and fee share that overall would make the venue an additional $1 million a year compared to Ticketmaster’s offer. But even retaliation insurance couldn’t make up for the loss of the “vibrance of the venue” and the impact on its own employees should Live Nation pull its shows. Ticketmaster’s alleged threat created an “insurmountable challenge.” The venue signed another contract with Ticketmaster.

There were complicating factors in both these cases, which Live Nation pointed out on cross-examination. It was both risky and a lot of work to move to a new ticketing platform. Like switching any enterprise software, it would take a while for staff to get up to speed, and Abbamondi admitted that while Seat Geek’s technology gave them more options over things like how to price individual seats, it was less user-friendly. An executive whom Helgerson worked with worried that Seat Geek’s lack of an interface for concert promoters at the time would be an obstacle to getting them to bring shows to the arena. Abbamondi also said he’s personal friends with Seat Geek’s co-founder, and he testified he wasn’t fired because of the Seat Geek deal — he was given two other reasons.

Seat Geek offered what it called “Live Nation retaliation insurance”

There was also a separate legal dispute between the Barclays Center and Ticketmaster, which appeared to be at least part of the reason that the call between Abbamondi and Rapino broke down. Barclays believed their contract with Ticketmaster would expire at the end of September 2021, as originally stated. But Ticketmaster believed that because the Covid pandemic shortened the regular NBA season, a clause in the contract had been triggered to extend that contract another year. On top of that, in an earlier, unrecorded call between Abbamondi and Rapino, the Ticketmaster CEO suggested that they should be given the chance to counter any offer Barclays received. Abbamondi said he tried his best to respond in a “noncommittal” way, but the implication was that Rapino might have seen it differently.

The jury will have to decide whether the threats Abbamondi and Helgerson described were really as menacing as they believe, one of many factors that will determine whether Live Nation-Ticketmaster should face penalties — including the possibility of a breakup.

In one text exchange, Live Nation executive Patti Kim, a friend of Abbamondi’s, wrote that he should “think about the bigger relationship” with Live Nation, not just who’s writing the bigger check. She added a winky face. “That was my friend saying, ‘you know what I mean,’” Abbamondi said. This week, the jury is expected to get the chance to hear from the rival allegedly offering those bigger checks: Seat Geek CEO Jack Groetzinger.

Lauren Feiner Close Lauren Feiner Senior Policy Reporter Posts from this author will be added to your daily email digest and your homepage feed. Follow Follow See All by Lauren Feiner

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