Lawsuit claims Merriweather losing major acts
Producer accused of steering shows away from Columbia venue
By Derek Simmonsen
dsimmonsen@patuxent.com
Posted 6/18/09
The operator of Merriweather Post Pavilion is continuing to pursue a federal anti-trust claim against the world’s largest concert producer, claiming the producer is keeping major acts from performing in Columbia.
It’s My Party Inc. (I.M.P.) and It’s My Amphitheater (I.M.A.), the companies that operate Merriweather, filed suit in March in U.S. District Court in Baltimore claiming the Los Angeles-based Live Nation violated federal and state antitrust laws and has a monopoly on the concert industry.
Live Nation subsequently asked a federal judge to dismiss I.M.P.’s complaint, arguing that it has done nothing illegal. A judge has not ruled on their request, and on June 10, I.M.P. filed its own motion, asking the judge not to dismiss the case.
I.M.P., which also operates the 9:30 club in Washington, D.C., has managed Merriweather for owner General Growth Properties since 2004. General Growth’s plans for redeveloping downtown Columbia call for making Merriweather part of a cultural hub in Town Center and a year-round destination.
“Live Nation has deliberately and unlawfully acquired monopoly power in the national market for the promotion of live popular music concerts,” the March lawsuit March states. “Live Nation has wielded this power to entice and coerce artists to appear only at amphitheaters and other venues it owns.”
The 11-count complaint claims Live Nation controls 19 of the top 25 regional markets in the country and wants to eliminate all competition so it can dominate all aspects of the music business. Live Nation signs deals with artists for entire tours and requires them to perform at only Live Nation-owned venues, the suit states.
That means major artists are performing at Nissan Pavilion, in Bristow, Va. and are skipping Merriweather. In 2008, fewer major acts performed in Columbia than in past years, the suit claims.
As an example, Merriweather points out that the Jonas Brothers performed at 1st Mariner Arena in Baltimore rather than Merriweather, because Live National refused to let them play at Merriweather. Other acts that have performed in the past at Merriweather, including Maroon 5 and Pearl Jam, signed contracts with Live Nation that keep them from performing at the venue.
Nissan has a capacity of about 25,000 people and Merriweather’s capacity is about 20,000, according to court documents.
“We believe Live Nation’s basic business model is anti-competitive and we mean to prove it,” said Seth Hurwitz, chairman of I.M.P. in a statement.
“There is a huge difference between enticing artists to play your venues by doing a better job, versus forcing them to play your venues by controlling the market and the acts. ... All I want is the opportunity to compete fairly.”
Live Nation, which was spun off from Clear Channel Entertainment in 2005, annually produces more than 22,000 concerts in 33 countries, according to its Web site. In February, it announced a planned merger with Ticketmaster.
In its request to have the suit dismissed, Live Nation notes that Nissan Pavilion is the closest venue it owns in the area and it controls no venues near Baltimore, making it far from dominant in the market.
In addition, Live Nation notes it has allowed some of its artists to perform at Merriweather, though I.M.P. claims this was done only after it agreed to pay Live Nation an exorbitant amount of the profits from the show.
I.M.P.’s complaint, the Live Nation motion reads, “is the same as that of the small town that travelers no longer visit after a new interstate highway takes traffic away from the local road that passes through town.”
Earlier this month, I.M.P. unveiled $1 million worth of improvements to Merriweather, including a new concession stand, sculptures, restrooms and environmentally friendly features. Owner General Growth plans to turn the facility over to the public within about 10 years of beginning its redevelopment of downtown Columbia, according to a proposal submitted by the company to the county.
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