Live Nation CEO’s Alleged Threats to Venue Revealed
▼ Summary
– The article centers on a key question in the government’s antitrust case against Live Nation: whether a 2021 call between executives constituted a threat or a reality check.
– The Verge obtained audio from that call, featuring a tense argument between Live Nation CEO Michael Rapino and Barclays Center CEO John Abbamondi over a ticketing contract.
– During the call, Rapino referenced a “new competitor in town” after Abbamondi announced plans to switch from Ticketmaster (a Live Nation subsidiary) to SeatGeek.
– Abbamondi testified that he interpreted Rapino’s comments as a threat that it would be difficult to book concerts at Barclays Center if they stopped using Ticketmaster.
– The case is currently in limbo after a DOJ settlement, though dozens of states are continuing their legal push against the company.
The ongoing antitrust case against Live Nation Entertainment hinges on a critical interpretation: were statements made by its CEO a strategic warning or an unlawful threat? This question lies at the heart of the government’s monopoly allegations, with newly revealed audio from a 2021 call providing a raw look at a contentious negotiation. The recording, entered as evidence, captures a heated exchange between Live Nation CEO Michael Rapino and then-CEO of Brooklyn’s Barclays Center, John Abbamondi, over the venue’s plan to switch its ticketing service from Ticketmaster to rival SeatGeek.
During the call, Abbamondi informs Rapino of the intended change, a move that immediately escalates tensions. The existing contract’s end date was already a point of dispute between the two parties. As the conversation nears its conclusion, Rapino directs Abbamondi’s attention to “a new venue in town,” which Abbamondi later testified he believed was a reference to the newly opened UBS Arena in Queens. Rapino states, “What I’ve told you from day one was, it was going to be a tough time to deliver tickets or concerts with a new competitor in town, regardless of ticketing.”
In court, Abbamondi characterized this remark as a “maybe not-so-veiled threat.” His interpretation was that Rapino implied Live Nation would find it difficult, if not impossible, to route major concerts and events to Barclays Center if the venue ended its relationship with Ticketmaster, a Live Nation subsidiary. The tone and context of the audio, more palpable than a written transcript, allow listeners to judge the nature of the exchange for themselves, with the key comments beginning just after the four-minute mark.
The case’s status remains complex. While the Department of Justice has reached a settlement with Live Nation, dozens of state attorneys general are continuing to pursue their own legal challenges. This recording serves as a pivotal piece of evidence for those arguing that Live Nation leverages its dominant position in concert promotion and ticketing to stifle competition and coerce venues into using its services. The fundamental legal debate continues to revolve around whether Rapino’s words constituted a pragmatic assessment of market competition or an anti-competitive strong-arm tactic designed to maintain the company’s market power.
(Source: The Verge)
