How Live Nation allegedly terrorized the concert industry

Source: The Verge

SeatGeek‑Cowboys Ticketing Deal

SeatGeek was on the brink of a deal that could have taken its ticket‑selling business to the next level. The company was negotiating with the Dallas Cowboys to assume first‑party ticket sales at the team’s stadium.

The sticking point – “the concert issue”

• The Cowboys feared that dropping Ticketmaster (SeatGeek’s main rival) might provoke Live Nation, Ticketmaster’s parent, to pull concerts from the stadium.
• Losing concerts would threaten a crucial revenue stream for the franchise.

“The concert issue was the one thing we just couldn’t get over, and seemed like it might tank the whole process,” recalled SeatGeek CEO Jack Groetzinger while testifying before a Manhattan jury.

Outcome

• The negotiations ultimately succeeded, and a primary ticketing partnership was announced in 2018.
• Official announcement: SeatGeek Announces Industry‑Shifting Primary Ticketing Partnership with the Dallas Cowboys (2018).

Live Nation‑Ticketmaster Antitrust Trial

During the first days of the government’s six‑week antitrust trial against Live Nation‑Ticketmaster, the theme of retaliation emerged prominently.

• Allegation: Live Nation would withhold concerts from venues that did not use Ticketmaster.
• Industry impact: The perceived threat discouraged several major venues from switching to what they considered a superior ticketing product, fearing Live Nation’s “wrath.”

Key references

• Trial coverage: The Verge – Live Nation‑Ticketmaster Antitrust Lawsuit (May 2024)
• Settlement news: Politico – Live Nation Reaches Settlement with DOJ (Mar 2026)

Outlook

• A settlement appears imminent, though it likely falls short of the full breakup the government advocated during the trial.
• Dozens of individual states involved in the case must still decide whether to pursue further action.

Retaliation Insurance

SeatGeek didn’t necessarily know Live Nation would strike back, but venues’ fear of losing concerts was costing SeatGeek business, according to CEO Mike Groetzinger. When the Cowboys deal appeared to be falling apart, a SeatGeek employee suggested a bold idea: retaliation insurance—a promise to pay a venue if Live Nation passed it over for a concert.

How the insurance works

1. Set‑aside fund – SeatGeek must reserve a large sum to cover any potential payouts.
2. Higher venue cost – Even if no payout occurs, the venue receives a “worse deal” because SeatGeek has to recoup the reserved funds elsewhere in the contract.
3. Last‑resort tool – The board approved the idea, and it helped clinch the Cowboys deal. Groetzinger later said:

“It’s really scary, but if we feel that we have no choice, we’ll do it.”

Real‑world triggers

“The Wild considered a SeatGeek offer, but Live Nation‑Ticketmaster allegedly threatened to move its shows to the Target Center in nearby Minneapolis, an ‘almost catastrophic’ consequence even retaliation insurance wouldn’t fix.” – Testimony from Mitch Helgerson, CRO of the Minnesota Wild.

The Barclays Center saga

• Initial offer: SeatGeek gave BSE Global (owner of Barclays Center) $20 M in equity because the arena could lose an estimated $20 M if Live Nation skipped it.
• Result: Groetzinger called it “one of the least profitable deals we signed,” but deemed it a watershed moment that later helped add three NFL stadiums and two arenas to SeatGeek’s roster.
• Problems:
  • Concert volume was far below expectations.
  • The arena complained about minor or nonsensical issues, some stemming from BSE’s own box‑office staff.
  • Groetzinger believed Barclays was creating a pretext to return to Ticketmaster.
• Outcome: The contract was terminated after 18 months; Live Nation’s attorneys later argued that SeatGeek’s incompetence—not retaliation—caused the fallout.

Broader implications

• Smaller arenas face even greater risk because they have fewer artist/promoter options.
• Each lost arena makes it harder to win new ones. SeatGeek has signed only five arenas to its primary ticketing business.
• As Groetzinger put it:

“An arena worries about being skipped when they feel like they’re on an island.”

Key takeaways

• Retaliation insurance is a high‑risk, high‑cost strategy used only when SeatGeek feels it has no alternative.
• The practice highlights the power imbalance between large promoters (Live Nation/Ticketmaster) and independent ticketing platforms.
• Real‑world cases (Cowboys, Barclays Center, Minnesota Wild) illustrate both the potential benefits (securing deals) and significant drawbacks (financial strain, contract instability).

For further reading, see the testimony of the two arena witnesses (John Abbamondi and Mitch Helgerson) in the Live Nation‑Ticketmaster trial:

The Verge – Live Nation Ticketmaster trial: DOJ, Barclays Center threats

It’s Bigger Than Ticketmaster

The case is about more than just ticket sales. The government also alleges that Live Nation has monopoly power over the market for large amphitheaters in the U.S.—outdoor venues popular with touring artists in the summer months. The company allegedly conditions access to these venues on using its own promoters, making it nearly impossible for others to break in.

Recent testimony

• Seth Hurwitz, owner of It’s My Party (I.M.P.), which runs major venues around Washington, DC (e.g., the 9:30 Club) and the non‑Live Nation‑operated amphitheater Merriweather Post Pavilion, testified that “when it comes to amps, it’s basically me and Live Nation.”
• Oliver Chi, former city manager of Irvine, CA, described Live Nation’s aggressive tactics as the city considered alternative operators for a new amphitheater it was building. A lobbyist for Live Nation allegedly told Chi that “Live Nation would simply route around” the venue if it were denied the contract.

Live Nation’s defense

Live Nation argues that many of the contested practices—such as signing exclusive contracts with venues and maintaining a vertically integrated business—are common among its rivals. The company attempts to cast doubt on the alleged threats, suggesting, for example, that the statements were merely neutral descriptions of business risks.

What’s next?

• If a settlement isn’t announced today, the jury will likely continue hearing testimony this week from:
  • AEG, another concert‑promotion and ticketing company with a similar structure,
  • A concert fan,
  • Several Live Nation executives,
  • Live Nation’s CEO,
  • Artists Kid Rock and Ben Lovett (Mumford & Sons).
• Should the government settle, some states may still pursue the case, and the court will ultimately decide the fate of one of the biggest live‑events empires in the United States.

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• Lauren Feiner