The chief government of Live Nation testified Thursday that it was “disgusting” that a prime ticketing employee talked about “robbing fans blind” in inside messages.
CEO Michael Rapino, who has led Live Nation since 2005, parsed his solutions and pushed again at occasions to repeated questions about rising ticket charges, exclusivity offers, and Live Nation’s revenue margins on venues, ticketing and promoting.
He was referred to as to the stand Thursday in a civil antitrust trial in Manhattan from states alleging that Live Nation, which owns Ticketmaster, operates as a monopoly. Roughly two dozen states say Live Nation is gauging clients by charging excessive charges by exclusivity offers.
Jeffrey Kessler, a lawyer representing the states, pressed Rapino about the rise in charges fans have paid for tickets over the past a number of years and artists’ complaints about these charges and ticketing guidelines.
Kessler confronted Rapino with a 2016 message he despatched to a consultant concerned in Alabama Shakes live performance, stating, “Our fees are too high we can’t defend them.”
Rapino stated he didn’t keep in mind the e-mail or what it was referring to.
Other artists, together with Adele, Paul McCartney and The Cure at occasions complained about ticketing, Rapino acknowledged.
Rapino defended the corporate saying he’s “very proud” of the enterprise he constructed.
Midway by his testimony Rapino was requested about a derisive inside message despatched 4 years in the past by Ben Baker, who’s at present head of ticketing for Venue Nation — which incorporates the corporate’s amphitheaters — about an improve in premier parking charges charged to fans.
In a message despatched over the Slack messaging system in 2022, Baker wrote, “robbing them blind baby. That’s how we do.” His colleague responded, “lol.”
Rapino stated of the change. “It’s disgusting and it’s not the way we operate.”
In one other message from 2022, Baker referred to as charges charged for entry to a VIP space of a present “f—ing outrageous,” including “these people are so stupid.”
Baker testified at trial earlier this week that his comment was “indefensible,” and he stated he was expressing shock on the quantity individuals would pay, according to the Associated Press.
Rapino agreed that if an artist desires to carry out at a venue owned by Live Nation they don’t have any alternative however to make use of the Live Nation promoter. He additionally acknowledged that charges for tickets, onsite parking, meals and beverage and garden chairs on the amphitheaters it owns comes out of fans’ pockets.
Asked if he thought these charges have been “outrageous” as Baker referred to as them, Rapino stated, “No.”
Later when questioned about 20% charges Ticketmaster expenses for secondary market ticket gross sales, Rapino retorted, “I’m the only one that says I want to cap secondary, so it goes against the motive you’re trying to deliver.”
Kessler requested Rapino about different previous statements together with one from a 2019 deposition the place Rapino stated, “Live Nation is a business model that has an incredible moat around the castle.”
Rapino stated the moat is their enterprise mannequin. “You want to build a better mouse trap than the other guy. We were much ahead of the curve in owning ticketing, owning venues and concert promotion. Others replicated that now,” he stated.
Kessler later pressed him once more, asking if the moat refers back to the exclusivity offers binding venues to the ticketing enterprise.
“That keeps competitors from getting in your castle, correct?” Kessler requested.
“Absolutely not,” Rapino replied.
During cross examination, an legal professional for Live Nation requested Rapino if he might dictate phrases to James Dolan, the proprietor of Madison Square Garden, the Knicks basketball crew and Rangers hockey crew.
“Is he the kind of buyer you can push around?” the lawyer requested.
“Certainty not,” Rapino stated.
The states are anticipated to relaxation their case subsequent week.
Correction: Ben Baker is at present head of ticketing for Venue Nation, a division of Live Nation. The story was up to date to replicate his function on the firm.
