By Jem Aswad, Variety | Subsidiaries of Live Nation, the world’s largest live-entertainment company, received some $19 million in “Save Our Stages” funding from the Small Business Administration, even though the act was intended to benefit small venues and not multinational corporations, according to an extensive report published by the Washington Post.
While Live Nation does not wholly own those businesses, sources told the Post that the company urged Democrats and Republicans in Congress to let it be directly eligible for the $15 billion emergency relief program, even though it is a publicly traded company that hardly qualifies as an independent venue. Ultimately, the law was written to exclude public companies, as well as firms they own or control, however, subsidiaries “in which Live Nation has a substantial, though not majority, ownership stake” received nearly $19 million, according to the Post’s review of Securities and Exchange Commission filings, state corporate documents and SBA data, as well as interviews with executives at companies that received grants.
It lists several of the companies listed as Live Nation subsidiaries in February SEC filings that received funds from the grant program, according to SBA data: Wisconsin company Frank Productions Concerts LLC, which received $10 million; artist management firm Gellman Management LLC, which received nearly $407,000; and Missouri firm Delmar Hall LLC, which received $1.75 million. Corporate documents filed in Wisconsin and California list Live Nation executives or subsidiaries having roles at Frank Productions Concerts and Gellman Management. Frank Productions Concerts, Gellman Management and Delmar Hall are all included on a list of hundreds of subsidiaries filed as part of Live Nation’s annual report covering 2021. A fourth company, The Pageant LLC, received $6.7 million from the program. It, along with Delmar Hall LLC, is 50 percent owned by Live Nation, said Patrick Hagin, who co-owns both businesses.
The report notes that the grants do not appear to have violated the law or any rules set by the SBA, however, it states, “The revelation demonstrates how a large company with stakes in hundreds of smaller businesses could, while following the rules, reap a benefit that some legislators didn’t want. And it shows that how agencies implement a law can be just as important as the way it is written by Congress.”
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Within days of lockdown beginning, independent venues had formed the National Independent Venues Association trade organization, which played a major role in the months-long effort to get “Save Our Stages” passed.
“The thousands of independent venues that came together to form NIVA could not have survived the pandemic shutdowns had it not been for the emergency relief provided by the Save Our Stages Act,” said NIVA executive director and co-founder Rev. Moose. “Our members are small business people that don’t have access to Wall Street financial instruments to survive a historic crisis not of their making.”
Read the whole story here:
https://au.variety.com/2022/music/news/live-nation-save-our-stages-indie-venues-2890/
[Thanks to Alex Teitz, http://www.femmusic.com, and Jamie Krutz, http://www.jamiekrutz.com for contributing this article!]
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Bill to Help Restaurants and Concert Venues Fails to Pass in Congress
An effort to send tens of billions in assistance to businesses like restaurants, gyms and concert venues ravaged by losses from the Covid pandemic failed to survive a procedural hurdle in the Senate on Thursday.
https://www.politico.com/minutes/congress/05-19-2022/restaurant-aid-flops/
[Thanks to Alex Teitz, http://www.femmusic.com, for contributing this article!]
May 26, 2022| Colorado Music-Related Business| Barb Dye