In anticipation of the economic climate post-COVID-19, Live Nation will slash payouts for artists in an unprecedented move which would shift a substantial amount of financial responsibility from the promoter to the performer.
“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,” the company writes in the memo. “In order for us to move forward, we must make certain changes to our agreements with the artists.”
As per the document – reported by Billboard and acquired by Rolling Stone – if a show is cancelled due to poor ticket sales, the artist will receive just 25% of a predetermined guarantee. This is unheard of in the current music landscape, where artists would always receive 100%.
Additionally, in an “unheard of” move, Live Nation will require artists who cancel their performances due to illness, or any other reason in breach of contract, to pay out twice their artist’s fee.
“We are fully aware of the significance of these changes, and we did not make these changes without serious consideration,” Live Nation states at the end of the memo.
Since coronavirus has taken the music industry offline, Live Nation stock has experienced a 48% drop, and the company has enacted sweeping salary reductions, furloughs and hiring freezes.
Read the full memo below:
Live Nation Memo to Talent Agencies
The global pandemic has changed the world in recent months and with it the dynamics of the music industry. 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. In order for us to move forward, we must make certain changes to our agreements with the artists. The principle changes for 2021 are outlined below.
Artist Guarantees: Artist guarantees will be adjusted downward 20% from 2020 levels.
Ticket Prices: Ticket prices are set by the promoter, at the promoter’s sole discretion, and are subject to change.
Payment Terms: Artists will receive a deposit of 10% one month before the festival, contingent on an executed agreement and fulfillment of marketing responsibilities. The balance, minus standard deductions for taxes and production costs, will be paid after the performance.
Minimum Marketing Requirements: All artists will be required to assist in marketing of the festival through minimum social media posting requirements outlined in artist offer.
Streaming requirements: All artists will be required to allow their performance to be filmed by the festival for use in a live television broadcast, a live webcast, on-demand streaming, and/or live satellite radio broadcast.
Billing: All decisions regarding “festival billing” are at the sole discretion of the promoter.
Merchandise: Purchaser will retain 30 % of Artist merchandise sales and send 70% to the artist within two weeks following the Festival.
Airfare and Accommodations: These expenses will be the responsibility of the artist.
Sponsorship: The promoter controls all sponsorship at the festival without any restrictions, and artists may not promote brands onstage or in its productions.
Radius Clause. Violation of a radius clause without the festival’s prior authorization in writing will, at the festival’s sole discretion, result in either a reduction of the artist fee or the removal of the artist from the event, with any pre-event deposits returned to the festival immediately.
Insurance: The artist is required to maintain its own cancellation insurance as the promoter is not responsible for the artist fee in the event of a cancellation of the festival due to weather or a force majeure.
Cancellation by Artist: If an artist cancels its performance in breach of the agreement, the artist will pay the promoter two times the artist’s fee.
Cancellation Due to Poor Sales. If a show is cancelled due to poor ticket sales, the artist will receive 25% of the guarantee.
Force Majeure: If the artist’s performance is canceled due to an event of force majeure – including a pandemic similar to Covid-19 – the promoter will not pay the artist its fee. The artist is responsible for obtaining any cancellation insurance for its performance.
Inability to Use Full Capacity of the Venue: If the promoter – either because of orders of the venue or any governmental entity – is not permitted to use the full capacity of the venue, then the promoter may terminate the agreement, and artist will refund any money previously paid.
We are fully aware of the significance of these changes, and we did not make these changes without serious consideration. We appreciate you – and all artists – understanding the need for us to make these changes in order to allow the festival business to continue not only for the artists and the producers, but also for the fans.
65 Comments comments associated with this post
Report: In 2021, Live Nation to Slash Payments to Performers, Shift Financial Burden to Artists in Unprecedented Move - jambands.com - South Dakota Online News
October 11, 2020 at 3:48 am[…] Click here to view the original article. […]
MAGA4LIFE
June 19, 2020 at 11:29 amAnd The Cap recently signed on with Ticketmaster
LOL
Why?
“ to make it better for YOU!”
you can’t make it up
David Letterman
June 19, 2020 at 12:56 amTicketmaster. Those bloodsucking, beady-eyed weasels!
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DJ Farfig
June 18, 2020 at 10:31 pmThe balance of power has once again shifted from aritsts/agents to promoters. Recognize. Until artsts & their teams can handle in house the local ground production, local knowledge, venues and all local vendors worldwide (possible w/skilled teams and capital) then promoters remain invaluable & irreplaceable. Less money for everyone going forward. Many artists have been making crazing money per night for a loooonnnng time. Haircut time all around. Oh, good news for independent promoters and AEG, always new going public for LN would be a huge liability in a “market correction”.
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MAGA4LIFE
June 18, 2020 at 8:53 pmBecause you’re FRAUDS
And more importantly, your Heroes are FRAUDS
They’re gonna take it dry just like you Custies will
VIP!
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MAGA4LIFE
June 18, 2020 at 7:30 pmSounds like the Voice of Experience, Joe
Need a hug? Wait, Nevermind
Line up , Custies
You’ll be paying 40 bucks a pop to park again in no time
PHISH! DnC! Gilmore!
YAaaayy
Go LN!!
niptuck
June 18, 2020 at 7:38 pmwhy are you fighting everyone MAGA4LIFE? you like live nation don’t you? it would be fitting to assume so
Joe
June 18, 2020 at 7:23 pmAs if we needed any more reason to hate this corporation. Fuck Live Nation, till their asshole bleeds
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SDFB
June 18, 2020 at 7:11 pmWHy are re-posts in the comments feed?
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Roland St Germain
June 18, 2020 at 8:58 pmBREAKING NEWS: Live Nation joins the thousands of local club owners when it comes to stiffing artists, blames COVID-19 for its newly-found greed. Film at eleven.
Jeff RoTull
June 23, 2020 at 5:43 pmYou’re either dyslexic or have very poor reading comprehension.
wah
June 18, 2020 at 5:13 pmstub hub, the online rapist
MAGA4LIFE
June 18, 2020 at 4:55 pmSauds bought 500 mil.
Mark Cuban bought a little less
Speak facts and STFU and buy your Phish and Dead n Co tickets like Good Custies
GO LN!
Larry Hulst
June 18, 2020 at 4:45 pmThis is the same live nation that just sold 8 billion in stocks/ownership to saudi arabia. F.U. Livenation and the rock star you rode in on.
[email protected]
June 18, 2020 at 4:31 pmJack you nailed it, I appreciate that artists like moe. use smaller regional ticket supplies when/where possible.
Jack M
June 18, 2020 at 3:31 pmWe’ve yet to see any legal consequence or even report of investigation of Ticketmaster’s software scalping ploy. We’ve become a nation of consumer sheep. People continue to pay LiveNation ludicrous prices for live events when they know full well the bulk of the ticket profit goes to people that have the least to do with the actual artistry.
Live streaming and subsequent direct donations to the musicians should be sparking the fire under bringing the monopoly of LiveNation to the point of non-existence. And all the thieving scum scalping corporations that have leached themselves onto this monopoly like Stubhub will become just a bad memory.
Not to tarnish the point, but the lack of real united representation for artists, and the failure of the public to recognize the importance of taking art back out of the hands of those who only recognize it for potential profit.
We need to see that we as the audience have everything in common with the artist, and nothing in common with the promotor.
Douglas Buzby
June 18, 2020 at 3:53 pmWell said, Sir!
wah
June 18, 2020 at 3:16 pmmy asshole has finally healed, because of no more handling charges, FUCK Livenation, dick ,me master, ticket bastard, go out of business and be gone…. at least with handling charges, jiggle my balls…. have a nice day!!
Ed Cribari
June 18, 2020 at 3:38 pmGet rid of live nation/ stubhub and all the other crooks
John Tull
June 18, 2020 at 3:10 pmIt’s not just about ticket sales, Live Nation OWNS many VENUES. If they go, someone will have to pick them up.
Ha Hurrah
June 18, 2020 at 4:25 pmSo What? No-one Has to do anything.
TOMG
June 18, 2020 at 2:56 pmFuck LiveNation
paddyVee
June 18, 2020 at 2:49 pmHave not been to a LiveNation or AEG show in over 20 yrs, don’t miss them at all. Support local, live music!!
DumpDonald Chump
June 18, 2020 at 2:36 pmIt’s about time the monopoly was disbanded by Washington or the courts.
lgtcd
June 18, 2020 at 4:29 pmnope. F washington and the courts. LN will destroy themselves because they are chewing off their own feet, they are so greedy
me
June 18, 2020 at 2:02 pmFunny how scum like Live Nation only work in one direction… when they rake artists over the coals during the good times, the top brass get super rich, but when they get hit in the pocket, they… that’s right, they fuck the artists again. Fuck You Live Nation… as bad as ticket scalper scumbags are, Live Nation is at the top of that greedy pile of ticket selling shit! I hope scalpers got fucked bad, I hope Live Nation/Ticket Master/Stub Hub all go belly up. It’s time for a lot to change in this country! Certainly, ticket sales pale in comparison to treating people decently, but this just might be the opening needed to get the scum out of the music industry.
phuckdat
June 18, 2020 at 1:32 pmThis is the ultimate sign of federal ineptitude. Not only is the monopoly going after customers but also it’s own product. You can’t make this shit up
Rob
June 18, 2020 at 1:18 pmI hope Live Nation goes out of business!
P
June 18, 2020 at 12:51 pmSo in order for the Black Crowes to make $$, they need to book 4x as many shows cause they’ll all be cancelled due to low ticket sales…
Hip Hurray
June 18, 2020 at 12:36 pmPerfect! Now the artists can give LiveNATION THE big middle finger and just say No! SO what about canceled sporting events due to injury/illness? does the team have to pay? F U Livenation. Can’t wait to see you crash and burn…good riddance with bad rubbish