A controversial US-based live music company being investigated by the US Department of Justice is behind a Victorian government plan to construct a new venue in Melbourne, raising concerns from local industry figures about a growing monopoly in the sector, impacting Australian promoters, artists and patrons.
Last month, the minister for industry support and recovery, Ben Carroll, announced the state government would spend $5 million constructing a new “pop-up” live performance venue that would help with “activating underused parts of the CBD”. The government did not say where the venue would be built, how big it would be or who would operate it.
Eastern suburbs friends Darcy, Luca, Kurtis and Christian enjoying live music at the Sidney Myer Music Bowl in 2021.Credit:Chris Hopkins
However, The Age can reveal that the proposal for a new 3500-capacity live music space in Melbourne was developed by Live Nation, a US company whose third-biggest shareholder is Saudi Arabia’s Public Investment Fund, which is controlled by Saudi Crown Prince Mohammed bin Salman.
According to documents prepared for cabinet and obtained by The Age, Live Nation approached the government with a plan to construct a new venue in Docklands to “fill a known gap in the Melbourne event and performance landscape” and host more than 100 shows a year.
Live Nation costed the venue at about $20 million and was seeking a financial contribution of $5 million from the state government. According to the documents, the proposal was supported by Development Victoria, the government’s major projects arm.
While the proposal for the performance space was led by Live Nation, the documents say the venture “may need to be market-tested for value, as other players in the industry may also wish to be considered in achieving these outcomes”.
Industry sources said that even if the operation of the venue was put out to tender, the fact that it was proposed by Live Nation gave the company an advantage.
The Victorian government did not answer questions about Live Nation’s involvement in the proposal, but a spokesperson said: “The Andrews Labor government has allocated $5 million, in partnership with the City of Melbourne, to create a pop-up live performance venue which will attract new audiences and activate underused parts of the CBD.”
“As is standard, the procurement process will be tendered under strict probity guidelines and be assessed against predetermined criteria without external influence.”
After the 2020 sale of Festival Hall to the Hillsong Church, the live music sector has voiced the need for a medium-sized venue in Melbourne to host local and international acts.
“We believe that the industry would benefit from a venue with a capacity between 3000-5000,” Simone Schinkel, the CEO of Music Victoria, told The Age. “There is currently a big jump from the Forum (with 2000 pax) to Kia Arena (with 5000 pax).”
Another reason why local promoters and arts organisations have been pushing for a new venue is to inject diversity into the live performance space, as current venues are increasingly being bought up or controlled by multinationals.
Live Nation currently operates the Palais Theatre in St Kilda and the newly announced Palace Foreshore, a 5000-capacity outdoor venue, and owns ticketing companies Ticketmaster and Moshtix. A new venue of the size being proposed, if operated by Live Nation, would further cement the company’s powerful position in the Australian music landscape, potentially squeezing out local competitors.
Paul Sloan, a booking agent whose clients include Nick Cave and Amyl and the Sniffers, said that while the government had identified the importance of live music, handing over a new venue to Live Nation would be a mistake.
English pop star Dua Lipa performing at the Palais Theatre last month.Credit:Rick Clifford
“It makes absolutely no sense that they would fund a Saudi-backed multinational that is being called out globally for inflating event prices and reducing competition,” he said. “[It] will simply supercharge Live Nation to run its own volume through a space where they can keep all the revenue from tickets, ticketing charges, venue charges and concessions.
“It would make more sense to give the money to an Australian arts/music focussed business or organisation who can operate the venue in a way that encourages diversity and equal opportunity in the sector.”
Live Nation recently announced a record income of $US6.2 billion ($9.2 billion) for the past quarter of this financial year, largely due to its ticketing business, but is facing sustained criticism for the way it wields its power to extract revenue from audiences.
This week, lawmakers in the US called for Live Nation to be broken up following accusations of price gouging around Taylor Swift’s upcoming tour. The New York Times has reported that the company is now being investigated by the US government, following claims it has abused its market power.
Live Nation did not answer questions about its role in lobbying for public funding to construct the venue but said it “looks forward to more details about the pop-up live performance venue”.
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