New accounts for Live Nation Entertainment (LNE) owned LN Gaiety Holdings Ltd (LNGH), which owns Festival Republic, show the company recorded 2020 pre-tax losses of £10.4m, despite £5.2m in government grants and a £30.6m Covid-19 insurance payout following the forced cancellation of its festivals including Reading (cap. 90,000), Leeds (80,000) and Latitude (40,000).
As first reported by The Irish Times, LNGH’s accounts also show how much the joint venture between Live Nation and Irish promoter Denis Desmond paid for Desmond’s promoter and venue owning operation MCD Productions.
MCD was owned by Desmond and wife Caroline Downey, 50/50 partners with LNE in LNGH, via their Gaiety Investments company.
The acquisition, which was subject to a Competition & Markets Authority enquiry in 2019, saw LNGH pay £48.3m for MCD, with Desmond and other shareholders in Gaiety Investments receiving £24.15m.
LNGH also owns a controlling share in venue group Academy Music Group.