Christopher BarrettTicketmaster-owner Live Nation has been found by a federal jury in New York to have run a harmful monopoly across the US that negatively impacted venues, ticketing services and other concert promoters.
New York state attorney-general Letitia James said, “This is a landmark victory in our ongoing work to protect our economy and New Yorkers’ wallets from harmful monopolies.”
Judge Arun Subramanian will now oversee proceeding to establish the steps Live Nation must take to restructure its operations, which could include selling Ticketmaster. It is also expected that the jury’s finding that Ticketmaster overcharged ticket buyers by $1.72 per ticket will result in financial penalties.
The jury’s decision came at the end of a five-week trial that involved testimony from industry executives including Live Nation president and CEO Michael Rapino and AEG Presents CEO Jay Marciano, Drake’s manager Adel Nur, and artists such as Mumford & Sons’ Ben Lovett. The case also involved evidence that suggested Live Nation ticketing executives had bragged about “robbing them blind.”
Last month, Live Nation reached a preliminary settlement with the US Department of Justice within days of the trial commencing, but state attorney generals from across the US declined to sign the agreement and continued with their legal battle.
In response to the jury’s verdict, Live Nation issued the following statement: “The jury’s verdict is not the last word on this matter. Pending motions will determine whether the liability and damages rulings stand.
“Live Nation will soon renew its motion for judgment as a matter of law, which the Court deferred until after the jury returned its verdict. That motion addresses all liability theories. The Court previously noted that Live Nation’s motion raises serious issues.
“There is also a pending motion to strike the damages testimony on which the jury’s award was based. The Court deferred ruling on that motion as well, while noting significant concerns with the damages expert’s analysis.
“Of course, Live Nation can and will appeal any unfavorable rulings on these motions.
“The jury’s award of $1.72 per ticket applies to a limited number of tickets—those sold at 257 venues, which represent about 20% of total tickets—and only to purchases by fans (excluding brokers) in certain states over the past five years. Based on that scope, we believe the aggregate single damages figure would be below $150 million, which would be trebled. In connection with the DOJ settlement, Live Nation has already accrued $280 million toward state damages and civil penalty claims.
“Injunctive relief will be determined by the Court after the states make a remedy proposal, which we expect in the coming weeks. In the meantime, the Tunney Act proceedings regarding the DOJ settlement will continue. We remain confident that the ultimate outcome of the States’ case will not be materially different than what is envisioned by the DOJ settlement.”
Among those to respond to the jury’s verdict in the UK was Association of Independent Festivals CEO John Rostron, who said, “AIF has long spoken out and provided evidence against Live Nation’s control and practices, which harm artists, consumers and the rest of the live music sector. This jury ruling is a great first step to ending that harm, but this issue goes far beyond ticketing. With similar influence across everything from festivals and concerts to venues and artist management, we now need similarly strong rulings in relation to the entire live music ecosystem across all territories. We hope that the Competition and Markets Authority will use this moment to expedite real action in the UK.”