Venue Execs Say Live Nation Used Major Tours to Pressure Ticketmaster Deals

Live Nation
Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images

Venue executives have told a US federal court that Live Nation used the promise of major tours, including Billie Eilish, to pressure arenas into maintaining Ticketmaster ticketing deals.

As the high-stakes antitrust case against the live entertainment giant continues in Manhattan this week, John Abbamondi, the former CEO of BSE Global which operates Brooklyn’s Barclays Center, said his arena experienced a sharp drop in Live Nation-promoted concerts after deciding to switch its ticketing platform from Ticketmaster to rival company SeatGeek in 2021, per TicketNews.

According to Abbamondi, the decision prompted an immediate change in Live Nation’s booking behaviour – including the relocation of a planned Billie Eilish concert from Barclays Center to the newly opened UBS Arena in nearby Queens.

He told jurors that Barclays Center chose SeatGeek after concluding that Ticketmaster’s economics were not as strong as competing offers. He said SeatGeek’s pitch, including technology and deal terms, helped confirm the choice. But after the switch took effect, he claims Live Nation dramatically reduced the number of concerts routed to the venue.

He also described tense conversations with Live Nation leadership when informing them of the decision to change ticketing providers, claiming executives warned the move could make it “difficult” for the arena to secure major tours. Prosecutors have pointed to these alleged interactions as evidence that Live Nation used its touring power to punish venues that declined to work with Ticketmaster.

Jurors also heard from Mitch Helgerson, chief revenue officer of the Minnesota Wild ice hockey team, who made similar claims of pressure and threats from Live Nation and Ticketmaster executives when the team were exploring competing ticketing platform proposals. Helgerson said the team’s venue – the Grand Casino Arena (formerly the Xcel Energy Center) – viewed it as a “credible threat”, and that losing those shows would have been “almost catastrophic” for the organisation.

The testimonies form part of the US Department of Justice’s sweeping antitrust lawsuit against Live Nation and Ticketmaster, which seeks to determine whether the live music giant has unlawfully maintained monopoly power in promotion and ticketing.

Love Film & TV?

Get your daily dose of everything happening in music, film and TV in Australia and abroad.

The case centres on allegations that Live Nation leveraged its control of major venues and tours to pressure arenas and amphitheatres into long-term exclusive ticketing agreements with Ticketmaster. Prosecutors argue the company’s integrated model has limited choice for venues, restricted rival ticketing platforms, and weakened competitive pressure on fees and service standards.

The DOJ has been joined by attorneys-general from 39 US states and the District of Columbia, making it one of the most significant legal challenges the modern concert business has faced.

Live Nation has denied the allegations. A lawyer for the company, David Marriott, insisted it “did not have monopoly power” during his opening statement. He argued instead that the live entertainment “marketplace is more competitive than ever it has been before”, asserting that “every customer we get is a hard-fought battle in a competitive market”.

The trial is expected to run for several weeks and will feature testimony from industry executives, venue operators, and artists including Kid Rock and Mumford & Sons’ Ben Lovett. A ruling against Live Nation could trigger significant structural changes to the world’s largest live entertainment company, with potential implications for promoters, venues and touring markets globally, including Australia.