Merriweather Post Pavilion has long been seen as the linchpin in redeveloping Columbia’s downtown, but a pending federal lawsuit claims a competing company’s monopoly on the concert business threatens the venue’s future.

It’s My Party Inc. and It’s My Amphitheater, the companies that operate Merriweather, have a pending federal lawsuit accusing Los Angeles-based Live Nation, the world’s largest concert producer, of keeping major acts from performing in Columbia. The suit, filed in March in U.S. District Court in Baltimore, charges Live Nation, which operates the rival Nissan Pavilion in Bristow, Va., has violated federal and state antitrust laws and has a monopoly on the concert industry.
 
“The better Merriweather does, the better Columbia does,” said I.M.P. Chairman Seth Hurwitz in a June 23 interview. “Any time the ability to book a show is taken away from us, it hurts the overall big picture.”

I.M.P., which also operates the 9:30 Club in Washington, 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, with ownership eventually transferring to the public.

County Executive Kenneth Ulman, who fought against plans to downsize Merriweather when he was a County Council member, said I.M.P. has helped revive the venue.
 
“The viability of Merriweather depends on its ability to book successful acts,” Ulman said. “It’s critically important for Merriweather and also for the future of Columbia downtown revitalization.”

Live Nation asked a federal judge to dismiss I.M.P.’s complaint, arguing that it has done nothing illegal. A judge has not ruled on the request, and on June 10, I.M.P. filed its own motion, asking the judge not to dismiss the case.

A Live Nation spokesman did not respond to a request for comment. In a June 17 interview with The Washington Post, Jason Garner, chief executive of global music for Live Nation, denied Hurwitz’s allegations.

He said I.M.P., not Live Nation, is the “dominant promoter” in the Washington market.

Big acts play Nissan

The 11-count complaint charges 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, 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. Earlier this year, Live Nation announced a planned merger with Ticketmaster.

LIve Nation signs deals with artists for entire tours and requires them to perform exclusively at Live Nation-owned venues, making it “virtually impossible” for an artist to launch a national tour without them, the suit states.

That means major artists are performing about 68 miles away at Nissan Pavilion and are skipping Merriweather. Nissan has a capacity of about 25,000 people and Merriweather’s capacity is about 20,000, according to court documents.

In 2008, fewer major acts performed in Columbia than in past years and only five shows had more than 10,000 in attendance, the lawsuit states. In two of those shows, I.M.P. had to pay Live Nation a percentage of the profits, which is usually at least 25 percent. Although some major artists used to play both venues on a tour or alternated them in order to reach more fans, Live Nation has generally barred this practice, the lawsuit states.
 
As an example, Merriweather points out that the Jonas Brothers performed at 1st Mariner Arena, in Baltimore, rather than Merriweather, because Live Nation 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.
 
“It’d be one thing if everyone liked going there more and we were losing out fair and square,” Hurwitz said. “But that’s not the case. We’re not able to compete.”

Despite the claims, Merriweather still has an active schedule. More than 30 concerts are booked for the 2009 season, and at least three are listed on the Web site as sold out, including recent performances by Kenny Chesney and Taylor Swift.

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.
 
In its request to have the lawsuit dismissed, Live Nation notes it has allowed some of its artists to perform at Merriweather. It justified requiring a percentage of the show’s profits because Live Nation does promotion for those artists, its motion states.

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.”

Impact on local economy

Merriweather, a Frank Gehry-designed amphitheater, opened in 1967 and was originally intended to be the summer home of the National Symphony Orchestra. It hosted NSO concerts for a few years, but pop music has generally dominated its schedule since.

About 250,000 people are expected to visit Merriweather this summer, with roughly 92 percent of them coming from outside Howard County, said Rachelina Bonacci, executive director of Howard County Tourism. People come from as far north as Philadelphia and as far south as Washington and Northern Virginia, she said.

The impact to the local economy is significant. Hotels play host to bands and crews and local restaurants frequently see a bump on Merriweather show nights, she said.
 
“Certainly the public relations value is fantastic,” Bonacci said. “For a suburban destination it gives us that hipness ... there’s a particular magic at Merriweather that I don’t think can be duplicated anywhere else.”

Merriweather was originally run by the Rouse Co. until 1971, when the Nederlander Organization, which owns Broadway theaters and other venues, took over. SFX Entertainment ran the venue for a year in 1999 before Clear Channel took over in 2000.

Clear Channel had its share of critics, who accused the company of reducing the number of shows at Merriweather and favoring Nissan when it owned both facilities. In addition to Nissan, Wolf Trap in Vienna, Va., also emerged as a strong competitor to Merriweather in the 1990s, according to a 2004 county task force report.

A movement to save the pavilion cropped up after the Rouse Co. proposed permanently enclosing the facility and shrinking its size, which would have eliminated large-scale outdoor shows. Ulman said he felt at the time the move was a ploy to allow greater development around Merriweather and ultimately close the venue.

The county considered buying Merriweather at one point but backed off those plans after General Growth, which purchased Rouse, decided to renovate the venue and make it part of its downtown redevelopment plans.

Under General Growth’s proposal, which is now being reviewed by the county Planning Board, redevelopment of Merriweather would begin within six months of plan approval.  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.
 
“Merriweather holds an enormous amount of potential for making a unique cultural place in Columbia,” said Gregory Hamm, a vice president and general manager of Columbia for General Growth. “It might be the best opportunity for outdoor entertainment in the Washington/Baltimore metro region.”

Hamm declined to comment on the I.M.P. suit, but acknowledged the importance of bringing major acts to Columbia. If Merriweather draws capacity crowds, it can help boost other cultural organizations in the county by making Howard County a regional destination for arts-lovers, Hamm said.

“Success breeds success,” he said.

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user comments (1)

user tom3 says...

Nothing in this article explains why this lawsuit could or should slow down the downtown redevelopment. Yes, it will continue to have an impact on the local economy just like it has for the past several years. This lawsuit will have a much bigger impact nationally than locally if it is successful. I wouldn't be surprised to see many smaller venues join in this case against Live Nation (formally Clear Channel). Yes, "Merriweather holds an enormous amount of potential". But, converting Symphony Woods into an everyday usable park is as important if not more important impact on the redevelopment of downtown. And that continues to be on track.

Posted 12:25 PM, 06.25.09 | Permalink