Live Nation's post-coronavirus concert pay cuts give artists short end of the stick
Live Nation owns TicketMaster
New policies from concert giant Live Nation include cutting artists' monetary guarantees by 20 percent in 2021 as the company deals with the coronavirus pandemic's impact on live entertainment, according to a Live Nation memo obtained by Rolling Stone.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LYV | LIVE NATION ENTERTAINMENT INC. | 94.65 | +6.36 | +7.20% |
Live Nation will also require artists who cancel performances in breach of contract to pay the promoter two times the artist's fee, which is an unusual move, Rolling Stone reported. The company will cut payments for artists whose shows are canceled because of poor ticket sales from 100 percent to 25 percent, according to the memo.
TICKETMASTER, CONCERT ORGANIZERS UNDER FIRE OVER CORONAVIRUS REFUNDS
"We are in unprecedented times and must adequately account for the shift in market demand, the exponential rise of certain costs and the overall increase of uncertainty that materially affects our mission," Live Nation said in the memo according to Rolling Stone. "In order for us to move forward, we must make certain changes to our agreements with the artists."
Live Nation did not respond to a request for comment.
In this June 2, 2018 file photo, Ariana Grande performs at Wango Tango in Los Angeles. (Photo by Chris Pizzello/Invision/AP, File)
Live Nation owns TicketMaster, which processes its sales and is facing legal action over unpaid refunds for events affected by coronavirus. Live Nation is the biggest company of its kind in the United States.
Meanwhile, some artists like Bishop Gunn's Travis McCready have restarted their concerts with socially distant events.