Live Nation CEO says it’s ‘disgusting’ that a top executive talked about ‘robbing fans blind’

By Kara Scannell, CNN

(CNN) — The chief executive of Live Nation testified Thursday that it was “disgusting” that one of his top ticketing executives talked about “robbing fans blind” in internal messages.

CEO Michael Rapino, who has led Live Nation since 2005, parsed his answers and pushed back at times to repeated questions about rising ticket fees, exclusivity deals, and Live Nation’s profit margins on venues, ticketing and advertising.

He was called to the stand Thursday in a civil antitrust trial in Manhattan from states alleging that Live Nation, which owns Ticketmaster, operates as a monopoly. Roughly two dozen states say Live Nation is gauging customers by charging high fees through exclusivity deals.

Jeffrey Kessler, a lawyer representing the states, pressed Rapino about the increase in fees fans have paid for tickets over the last several years and artists’ complaints about those fees and ticketing rules.

Kessler confronted Rapino with a 2016 message he sent to a representative involved in Alabama Shakes concert, stating, “Our fees are too high we can’t defend them.”

Rapino said he didn’t remember the email or what it was referring to.

Other artists, including Adele, Paul McCartney and The Cure at times complained about ticketing, Rapino acknowledged.

Rapino defended the company saying he is “very proud” of the business he built.

‘Robbing them blind baby’

Midway through his testimony Rapino was asked about a derisive internal message sent by a Ticketmaster executive about an increase in premier parking fees charged to fans.

In a message sent over the Slack messaging system in 2022, the employee Ben Baker wrote, “robbing them blind baby. That’s how we do.” His colleague responded, “lol.”

Rapino said of the exchange. “It’s disgusting and it’s not the way we operate.”

In another message from 2022, Baker called fees charged for access to a VIP area of a show “f—ing outrageous,” adding “these people are so stupid.”

Baker testified at trial earlier this week that his remark was “indefensible,” and he said he was expressing shock at the amount people would pay, according to the Associated Press.

Rapino agreed that if an artist wants to perform at a venue owned by Live Nation they have no choice but to use the Live Nation promoter. He also acknowledged that fees for tickets, onsite parking, food and beverage and lawn chairs at the amphitheaters it owns comes out of fans’ pockets.

Asked if he thought those fees were “outrageous” as Baker called them, Rapino said, “No.”

Later when questioned about 20% fees Ticketmaster charges for secondary market ticket sales, Rapino retorted, “I’m the only one that says I want to cap secondary, so it goes against the motive you’re trying to deliver.”

Kessler asked Rapino about other past statements including one from a 2019 deposition where Rapino said, “Live Nation is a business model that has an incredible moat around the castle.”

Rapino said the moat is their business model. “You want to build a better mouse trap than the other guy. We were much ahead of the curve in owning ticketing, owning venues and concert promotion. Others replicated that now,” he said.

Kessler later pressed him again, asking if the moat refers to the exclusivity deals binding venues to the ticketing business.

“That keeps competitors from getting in your castle, correct?” Kessler asked.

“Absolutely not,” Rapino replied.

During cross examination, an attorney for Live Nation asked Rapino if he could dictate terms to James Dolan, the owner of Madison Square Garden, the Knicks basketball team and Rangers hockey team.

“Is he the kind of buyer you can push around?” the lawyer asked.

“Certainty not,” Rapino said.

The states are expected to rest their case next week.

The-CNN-Wire
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