Newly released court records have added a twist following Live Nation‘s proposed settlement of the Justice Department‘s antitrust case.
Slack messages between two employees, who were tasked with ticketing duties in Florida and Virginia, revealed them joking about the ancillary fees charged by Live Nation venues for various events.
In one instance, Jeff Weinhold writes to a colleague, Ben Baker, about VIP club admissions, with prices charged up to $199.
“These people are so stupid,” Baker wrote.
“I have VIP parking up to $250 lol,” Weinhold then wrote.
“I almost feel bad taking advantage of them,” Baker wrote.
The Justice Department and state attorneys general wrote that the messages were relevant to the trial because they are “a significant way that Live Nation monetizes its monopoly position in the
amphitheater market.” They pointed to other comments, including an exchange where one of the employees boasts about parking revenue as “robbing them blind, baby.”
Live Nation, however, has characterized the two employees as far from decision makers at the company.
In a statement on Thursday, Live Nation said, “The Slack exchange from one junior staffer to a friend absolutely doesn’t reflect our values or how we operate. Because this was a private Slack message, leadership learned of this when the public did, and will be looking into the matter promptly. Our business only works when fans have great experiences, which is why we’ve capped amphitheater venue fees at 15% and have invested $1 billion in the last 18 months into U.S. venues and fan amenities. “
In its filing, the government said that Baker is now head of ticketing for Venue Nation, a digital account platform owned by Live Nation. The government attorneys wrote that “if artists wish to play large amphitheaters in the United States, they often have no choice: Live Nation is able to impose excessive prices that degrade the fan experience without fear of artists switching to another amphitheater because, in most cases, no alternative exists.”
Earlier this week, the Justice Department and Live Nation announced a settlement, just as an antitrust trial was starting in federal court in New York. The government had sought to break up the live entertainment giant.
Under the terms, venues will be able to use a variety of companies to sell tickets, not just Ticketmaster. That will be a standalone product, using Ticketmaster technology, that will allow companies like StubHub to offer such sales. Live Nation said that it also has agreed to divest 13 exclusive booking arrangements with amphitheaters.
The dozens of states that also are plaintiffs in the lawsuit have yet to sign on to the settlement, raising the prospect that they will proceed with the case on their own. The judge presiding, Arun Subramanian, ordered the parties to try to work out a settlement this week.
Bloomberg first reported on the employees’ Slack exchanges.
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