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Live Nation Wants Artists to Take Pay Cuts

Discussion in 'Article Discussion' started by Melody Bot, Jun 18, 2020.

  1. Melody Bot

    Your friendly little forum bot. Staff Member

    This article has been imported from chorus.fm for discussion. All of the forum rules still apply.

    Rolling Stone:

    Most of the new policies shift financial burdens to artists: For example, the company wants to decrease the monetary guarantees promised to artists before an event by 20% across the board. Live Nation also says that if a concert is cancelled due to poor ticket sales, it will give artists 25% of the guarantee (as opposed to the 100% that promoters are currently expected to pay). Moreover, if an artist cancels a performance in breach of the agreement, the artist will pay the promoter two times the artist’s fee — a type of penalty that, as Billboard notes, is unheard of in the live music industry.

    “We are fully aware of the significance of these changes, and we did not make these changes without serious consideration,” Live Nation wrote. The company did not respond to request for comment.

    Maybe the CEO didn’t need to be making three million a year.

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  2. surgerone

    Regular Supporter

    Fuck live nation. Take away money from tours and...what do artists have left?
     
  3. cosmickid

    Composer, but never composed.

    So so scummy
     
    falafelmywaffle likes this.
  4. finnstigator

    Newbie Supporter

  5. I have many suggestions on ways they could have better prepared, but the easy one is ... the CEO not being worth a quarter of a billion dollars:
    Rapino earned $70.6 million in 2017 and was reported to have one of the highest discrepancies in salary between CEO and his employees who earned an average of $24,000
    Cause, yuck:
    This shafting of consumers fed one of the largest CEO pay packages recorded thus far in 2017. Michael Rapini, CEO of Live Nation, made $70.6 million last year, including $58.6 million in stock. The average employee at Live Nation makes $24,406, for a CEO/worker ratio of 2,893:1. Put another way, it takes just 41 minutes for Michael Rapini to earn the average worker’s annual wage.
     
    RyanPm40 and yeahrightdude like this.
  6. finnstigator

    Newbie Supporter

    Most of that $70MM was on the sale of stock. When i started 5 years ago, it was at ~$24 per share. 10 years ago the stock was <$10 per share. Michael sold a bunch in the $60-70 range. That's not salary. that's betting on your own company. The consumers didn't pay him $70M...the market value of the company increased because LN is smart at acquiring assets (festivals, venues, promoters). The market believes in LN, so the value goes up.

    If you wanna do the same comparison, look at Tim Cook @ Apple. Worth $625MM. While the person at the apple store makes $25k/yr. Soooooo ....?
     
  7. Yeah, I wanna tax Tim Cook and Apple **way** more too. But Apple isn’t claiming poverty rn and fucking over workers and artists in this way. Your boss could pay for all of you to be working right now, no pay cuts or layoffs needed, don’t hold water for him!
     
    trevorshmevor and surgerone like this.
  8. finnstigator

    Newbie Supporter

    They're fuckin over lots of ppl in china making iphones.

    Look man, i feel you. Artists need to get paid for their work. The challenge is often that if an artist pulls the plug, we're still on the hook for the venue and event staff. not to mention the countless people who put time and effort into getting tours ready. furthermore, if an artist cancels - in breach - it's bc every artist, manager, etc has had the chance to review their upcoming tours and make a decision to cancel or postpone.

    You look at live nation as this corporate empire, but really we're a company of many small businesses like C3, Superfly, Founders, House of Blues. All of whom have staff. All of whom have costs. We rely on tours far more than the artists to do make money. It's literally 100% of our business.

    Re: cutting guarantees... that's just the check an artist gets BEFORE the tour. Before they even get on the tour bus. The artist will be made whole based on the ticket sales of the tour. this is just the upfront cash we're talking about.

    To put a finer point on this, we're talking about the artists that tour with LN. Typically playing larger clubs and Amphitheaters. We're not talking about up and coming acts. The kind of artists that ppl come to this site to read about.

    In summary:
    - If the artist cancels in breach, we dont have the cash to float it bc of the COVID impact.
    - The artist will still get paid and be made whole, but the upfront cash is gonna shave off 20%...bc covid.

    In short, the artist isnt getting fucked over. LN is doing what it needs to do to keep live events happening. If i'm you, i'd be more worried about the NIVA report that 90% of indie venues are at risk of going under. I know you reported on that. But, to me, that has far larger impact on the industry than LN tightening financial agreements with touring artists.
     
    dubey likes this.
  9. Jason Tate Jun 18, 2020
    (Last edited: Jun 18, 2020)
    You saying things I agree with about Apple, doesn't make me think LiveNation is some how now in the right or is handling everything correctly. Saying "look over at this other company" is nothing more than a distraction. I agree with them! Haha

    I know, and I'm saying the dude worth a quarter billion dollars being on the hook to make them whole, and keep people working and paid, instead is more than ok with me. Let's use his money for good. Instead they're claiming "oh gee we can't do this" and I look at the executive salaries for the past few years and ... uh ... it's pretty obvious.

    This is a good reason why you should be pissed off you're struggling while your boss has more money than he'll ever be able to spend.
     
  10. sureshot

    Newbie

    First off, a guarantee is not upfront money. It’s the amount the promoter agrees to pay as a minimum and the artist doesn’t receive it until after the show. If by made whole you mean getting paid what they would have been paid a year ago, they won’t be unless the show does the business and they make it in back end. The artist gets $0 upfront and has to front all the expenses leading up to the show.

    That’s really besides the point because every promoter is doing all of this. It’s easy to target LN because they’re a huge company and are seemingly taking their large market share and bullying artists with their leverage but every promoter is cutting guarantees about the same amount. That goes for AEG and indie promoters too. Promoters have always used their collective power to gauge artists. All clubs CAN charge Merch rates, facility fees and meet and greet fees because all clubs DO charge them. If the big club down the street charges them, then so can the indie club because it’s not like artists will have a choice if everyone does it and the same goes for these guarantee deductions
     
  11. zachmacD

    Trusted

    its shitty but if bands want to play live, they are going to have to make some sacrifices like everyone else in the pandemic. If these venues go out of business, there will be nowhere for them to play.
     
  12. josh-

    Twitter: @joshcaraballin

    I see both sides of it. No one knows what the future holds and there’s a lot of liability booking the first tours and shows back. This is only a temporary fixture, and I’m sure all types of promoters will be enacting something like it to cover their ass. It’s going to be a risky time for bands and promoters. And if promoters can’t feasibly exist then bands can’t tour.
     
  13. cosmickid

    Composer, but never composed.