In its lawsuit accusing Dwell Nation Leisure, the live performance behemoth that owns Ticketmaster, of being an unlawful monopoly, the Justice Division drew on a raft of inner communications that provided a uncommon behind-the-scenes have a look at the trade.

The Justice Division argued in an in depth criticism filed on Thursday that the merger of Dwell Nation and Ticketmaster, which went by in 2010, had damage competitors, hindered innovation and resulted in greater ticket costs and charges for shoppers. It known as for the corporate to be damaged up.

In response, Dwell Nation, which can also be the world’s largest live performance promoter, has mentioned that it’s not a monopoly, and denied that it has the unilateral energy to lift costs. Opposite to the federal government’s argument about its nice energy, Dwell Nation says it now faces extra competitors than ever, and that the Justice Division’s swimsuit “gained’t scale back ticket costs or service charges.”

Detailing its allegations, the federal government relied on eye-opening emails that it says have been written by Dwell Nation’s chief govt, Michael Rapino, and different high-powered figures within the live performance world.

Listed below are a number of of these accusations.

One episode from 2021 goes to the guts of the Justice Division’s allegations that Dwell Nation went to excessive lengths to guard its aggressive edge.

Late that 12 months, the federal government says, Dwell Nation “threatened business retaliation” towards the non-public fairness agency Silver Lake, which had an funding in TEG, an Australian ticketing and promotions firm that was concerned in a extremely anticipated profit present by Kanye West and Drake on the L.A. Coliseum. Silver Lake had additionally invested in Oak View Group, a venue administration firm with shut ties to Dwell Nation.

Based on the federal government, Rapino complained to an Oak View Group govt that he considered TEG as a competitor, and Oak View Group relayed to the investor that Dwell Nation was “not glad.” Rapino then informed Silver Lake he was “all in” with Oak View Group, “the place the massive play lies with venues — why insult me with this funding in ticketing/promotions and so forth.”

TEG had organized a deal to promote some tickets by StubHub. Based on the criticism, Dwell Nation sought to “frustrate” TEG by blocking these tickets, and because of this “tons of of StubHub’s prospects have been refused entry to the occasion.”

Dwell Nation then “threatened to tug its help from Oak View Group,” and Irving Azoff, the highly effective artist supervisor who was a co-founder of Oak View Group, refused to permit TEG to advertise exhibits with any of the artists he managed. Azoff informed Rapino he would demand that Silver Lake promote TEG, and Rapino replied, “Love ya.” Based on the criticism, Silver Lake sought to promote TEG — and provided it to Dwell Nation.

In a detailed response to the Justice Division’s lawsuit, Dan Wall, Dwell Nation’s govt vice chairman of company and regulatory affairs, mentioned the declare that Dwell Nation had threatened Silver Lake “reveals not solely a disregard for the information, but in addition deep hypocrisy.”

Rapino’s criticism, Wall mentioned, was “basically the identical” as a priority by each the Justice Division and the Federal Commerce Fee over “non-public fairness firms making a number of investments in the identical trade due to aggressive ‘entanglements.’”

In a separate assertion in regards to the live performance on the L.A. Coliseum, Dwell Nation mentioned: “The one factor that we did was frustrate TEG’s efforts to place tickets straight on the secondary market in violation of our unique rights over main tickets.” Silver Lake didn’t reply to a request for remark.

Dwell Nation, the federal government says, initially considered Oak View Group as certainly one of its “Largest Competitor Threats.” However quickly the businesses “colluded,” the federal government says, to “keep away from competing with one another, and chart a mutually helpful marketing strategy to cement Dwell Nation’s dominance.”

Oak View Group, the federal government says, operated as an “agent” for Dwell Nation, even calling itself a “pimp” and a “hammer” for the bigger firm, typically delivering threats on behalf of Dwell Nation to venues that have been contemplating dropping Ticketmaster for one more ticket supplier.

The federal government’s criticism quotes from what it says are emails from 2016 by which Rapino complains to Oak View Group executives about their intention to advertise exhibits with an artist that Dwell Nation works with. Oak View Group backs down, with the corporate’s chief govt — who isn’t recognized within the criticism, however is Timothy Leiweke — saying: “Our guys received a bit forward. All know we don’t promote and we solely do excursions with Dwell Nation.”

Wall, the Dwell Nation govt, mentioned in response that Oak View Group “has by no means been a live performance promoter, nor aspired to be one,” and that it was merely seeking to fill the occasional darkish evening at certainly one of its venues. “To painting that as an settlement to not compete in live performance promotion is farcical,” Wall wrote. A consultant of Oak View Group declined to remark.

In early 2023, The New York Instances broke the news that Barclays Heart, the world in Brooklyn, was dropping SeatGeek, the younger and aggressive ticketing enterprise it had simply entered a seven-year contract with, and signing a brand new cope with Ticketmaster.

The abrupt change raised eyebrows within the trade, and led to questions on whether or not Dwell Nation had denied the venue entry to Dwell Nation’s greatest excursions as retaliation for switching from Ticketmaster to SeatGeek. Dwell Nation denied that on the time, and a evaluation of live performance knowledge by The Instances was inconclusive. The variety of Dwell Nation-promoted exhibits at Barclays had certainly fallen since SeatGeek took over, however so had these by impartial promoters.

The Justice Division’s case omits Barclays’ title from the swimsuit, however Wall confirmed it in a convention name with traders late Thursday. The federal government quotes from an e-mail that it says was despatched to the venue’s chief govt from “a senior Dwell Nation govt” who had heard the venue was switching to SeatGeek: “In any case,” the e-mail says, “ought to take into consideration larger relationship with LN not simply who’s writing an even bigger sponsorship test,” including a “wink” emoji.

Based on the federal government, Dwell Nation “adopted by on its threats, re-routing live shows to different venues.”

In response, Dwell Nation mentioned, “We categorically deny that any live shows have been rerouted to retaliate towards their resolution to go to SeatGeek.”

The federal government argues that Dwell Nation has acquired plenty of firms with an purpose to remove rivals in each live performance promotion and ticketing.

Among the many examples the federal government cites are United Concert events in Utah, which used a regional ticketing firm known as SmithsTix. Based on the what the federal government says have been inner communications at Dwell Nation, the corporate needed a larger ticketing foothold in Utah however selected to not purchase SmithsTix as a result of doing so would “require us to go to the DOJ.” As an alternative, Dwell Nation purchased United Concert events in 2017 and transformed its venues to Ticketmaster; SmithsTix, it mentioned, finally went out of enterprise.

One other is AC Leisure in Tennessee, which had performed a component within the Bonnaroo competition there. Dwell Nation took a controlling stake within the firm in 2016. A Dwell Nation govt considered the economics of the deal as “not tremendous thrilling,” however known as it “a defensive transfer” towards AEG, in accordance with the criticism. In 2018, Dwell Nation purchased Frank Productions, a promoter in Wisconsin that used ticketers apart from Ticketmaster; Dwell Nation acquired the corporate and “flipped the venues to unique Ticketmaster contracts.”

In response, Wall mentioned the deal for AC Leisure was made with a promoter who was in his 60s and needed to retire. “Dwell Nation didn’t have a Knoxville workplace, so for $15 million it made the deal,” Wall wrote. “Severely? The DOJ is difficult that?”



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