The acts have to play to empty seats.<\/p>\n
So Barbra Streisand decides to go back on tour.\u00c2\u00a0 Makes a deal with Michael Cohl.\u00c2\u00a0 You know the drill, he advances a shitload of money and you perform.\u00c2\u00a0 Only one problem, Barbra couldn’t sell the tickets.\u00c2\u00a0 Prices were too high, she’d already done her farewell tour.\u00c2\u00a0 But do you think Michael Cohl’s gonna lose all that MONEY!\u00c2\u00a0 Of course not.\u00c2\u00a0 So he asks Barbra for a reduction. America’s Movie Star Diva?\u00c2\u00a0 OF COURSE NOT!\u00c2\u00a0 So then Cohl whips out his ultimate trump card.\u00c2\u00a0 No problem, I’ll just let you play to an empty house.<\/p>\n
Well, not truly empty, Barbra sold some tickets.\u00c2\u00a0 But half-empty?\u00c2\u00a0 Two-thirds empty?<\/p>\n
Barbra Streisand caved.\u00c2\u00a0 She made less money, but her reputation remained intact.<\/p>\n
Live Nation’s got to stop giving away the tickets, stop doing discount deals and let the acts play to half-filled houses.\u00c2\u00a0 Believe me, then the managers and agents will cave.<\/p>\n
But Live Nation won’t do this.\u00c2\u00a0 Because they want the parking and concession revenue.\u00c2\u00a0 And it’s a public company.\u00c2\u00a0 Hell, are you scratching your head wondering why no fee shows were only available in June?\u00c2\u00a0 Live Nation had to get that money NOW, for its quarterly earnings report!<\/p>\n
In order for Live Nation to survive, it has to exact some pain.\u00c2\u00a0 The acts have to play for lower guarantees.\u00c2\u00a0 You can say they can go elsewhere, but really?\u00c2\u00a0 Sure, GaGa doesn’t need Live Nation’s advance, she can get it from somewhere else.\u00c2\u00a0 But Styx?\u00c2\u00a0 The Doobie Brothers?\u00c2\u00a0 All those acts playing Live Nation sheds?<\/p>\n
And it’s not only the seventies and eighties has-beens.\u00c2\u00a0 So many of the modern acts don’t earn their guarantees.\u00c2\u00a0 But all of them like the fact that Live Nation will buy the entire tour, guarantee a shitload of money.\u00c2\u00a0 What if Live Nation says NO!<\/p>\n
Do you really think JAM and IMP are gonna pay those heinous guarantees?\u00c2\u00a0 And AEG is about creaming the top off the business.\u00c2\u00a0 And how much money is AEG making anyway, does Phil Anschutz want to take MORE risk?<\/p>\n
It might hurt its stock in the short run, but Live Nation has to exact pain in the marketplace in order to not only cure its ultimate stock price\/business, but the touring industry.\u00c2\u00a0 Overpayment must stop.<\/p>\n
A hell of a lot of other stuff must stop too.\u00c2\u00a0 Check out this sales receipt: <\/p>\n
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