Live Nation Can ‘Gouge’ Fans on Fees, Ticket Directors Brag
(Bloomberg) — Two Live Nation Entertainment Inc. The ticket manager boasted about the high fees the company charged fans, joking in internal messages that the company was “ripping them blind” and that “these people are so stupid” that “I almost feel bad taking advantage of them.”
In a series of conversations in 2022, Ben Baker and Jeff Weinhold, two regional managers for ticketing for Live Nation amphitheatres, boasted about their ability to increase so-called “ancillary fees” like parking, lawn chair rentals and VIP access, but still get concertgoers to pay for them. Weinhold once boasted about raising the fee for VIP parking at a concert hall in Virginia to $250.
Baker wrote: “These people are so stupid. I almost feel bad that I’m taking advantage of them” and later added: “I’m giving them a run for their money.”
In another conversation, he boasted of charging “$50 to park on the grass” and “$60 for closer grass.”
“We’re robbing ’em blind, baby,” he said, “that’s how we do it.”
The company said in a statement that the messages did not reflect its values.
Baker is currently the head of ticketing for the Live Nation unit responsible for 150 amphitheatres, and was expected to testify this week in a federal antitrust lawsuit over allegations that the company illegally monopolizes the live events industry.
His testimony was postponed after the U.S. Department of Justice reached a settlement with Live Nation on Monday. A group of state attorneys general is expected to continue filing lawsuits against the company next week.
Previously: Live Nation to Retain Ticketmaster in Surprise DOJ Deal
In a court filing last week, Live Nation asked the judge to exclude a series of six Slack messages between the two men, arguing it would unfairly prejudice the jury. The company redacted the descriptions of the chats in its brief statement. The Justice Department and state attorneys general opposed the request to exclude the chats, arguing they were evidence of how Live Nation used its monopoly to worsen the fan experience.
A group of media organizations, including Bloomberg, petitioned the court to unseal the documents. U.S. District Judge Arun Subramanian ruled Wednesday that the documents should be sealed and ordered states to sue Live Nation to make them publicly available.
“An assistant employee’s Slack exchange with a friend certainly does not reflect our values or the way we work,” Live Nation said in a statement. “Because this was a private Slack message, leadership learned of this when it became public and will investigate the matter immediately.”
Live Nation said its agreement with the Justice Department would cap amphitheater fees at 15% and that it has invested $1 billion in venues over the past 18 months.
Baker and Weinhold did not immediately respond to requests for comment sent via social media.
The company said in its filing that Baker and Weinhold were friends and that the messages reflected “in-the-moment banter, not politics, decision-making or substantive facts.” Live Nation called on the court not to include these people in the trial, claiming that their sole purpose was to “show the company in a bad light and anger the jury.”
In unredacted responses released Wednesday, the states argued that ancillary fees like those discussed in the chats were a way for Live Nation to make more money from its monopoly. The company “can disrupt the fan experience by charging excessive prices for ancillary services without fear of changing artists,” they said, calling it evidence of Live Nation’s monopoly power in amphitheatres.
–With help from Josh Sisco.
(Updates with background on settlement and Live Nation investments in paragraph 12.)
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