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Reports have surfaced that Illinois' attorney general may be investigating Lollapalooza for anti-trust violations, based on the restrictive contracts it gives performers.
Jim DeRogatis, former pop music critic for the Chicago Sun-Times, wrote on his Vocalo.org blog yesterday that Attorney General Lisa Madigan's office has subpoenaed music business agents and executives at C3 Presents, the company that sponsors Lollapalooza.
The investigation is apparently based on the "radius clause" in the contracts that Lollapalooza artists sign. Language in the contracts prohibits every band playing at the festival, from headliners on down, from playing within a 300-mile radius of Chicago for months around the festival.
From DeRogatis:
Sources have said that the most extreme of these clauses stretch from six months before Lollapalooza to three months after it, and that they encompass a 300-mile radius--which would include concert markets as far away as Milwaukee, Madison, Iowa City, Detroit and Indianapolis. Many local Chicago club owners and independent concert promoters have said that these radius clauses are decimating the local music community and significantly hurting their business for much of the year, and that they constitute unfair, anti-competitive practices. Lollapalooza promoters respond that the clauses are standard practice in the concert industry, and that they waive them for any artist who asks to be excused from their requirements.
Greg Kot, Chicago Tribune music critic, also reported the story, saying that industry sources started hearing about the investigation last week.
He spoke with a number of club owners around Chicago, who seemed encouraged by the prospect of an investigation.
"A lot of us (club owners) have been talking about this," said Ray Quinn, owner of the Lincoln Avenue club Martyrs. "It's encouraging (if there is an investigation). The radius clauses are so huge I can't believe booking agents go along with them. They really hurt our business in the summer." Bruce Finkelman, owner of the Empty Bottle, said, "There are enough people who are screaming about this that it merits looking into. Is it a good idea? I'm of two minds about it. If I put 300 million, trillion dollars into a festival I would want these clauses. But as a small club that lives and dies by the talent that's available, it would be nice to present these acts without those clauses restricting them."
DeRogatis also spoke with a number of club owners, all of whom seemed quite unhappy with the restrictive clauses. Sean Duffy, talent booker at the Abbey Pub, told him, "Lollapalooza alone probably wiped out about 60 club shows last summer, and we've just got to rein that in."
Neither the Attorney General's office nor C3 had any comment on the issue
Here are the radius/exclusivity clauses for the big three US fests:
Lollapalooza: Unless artist or agent thereof receives express written consent executed by a representative of C3, Artist will decline any performance engagement from 180 days before Lollapalooza to 90 days following Lollapalooza within a 300-mile radius of Lollapalooza. This radius clause also includes any performances (public or private) in Chicago the weekend of Aug 6-8, 2010. Artist will not announce ANY Lollapalooza performance until Lollapalooza has publicized its schedule.
Coachella: Except for the Festival and unless otherwise agreed to by “Festival” in writing, artist shall not advertise, perform, or publicize any performance: a) In Los Angeles, Orange, Riverside, San Bernardino, Santa Barbara, Ventura, or San Diego counties form December 1, 2009 until 30 days after the Festival (editor’s note: the Coachella festival typically takes place in mid-April). b) At any festival in the States of California, Nevada, or Arizona until 30 days after the Festival c) Or announce any other US festival prior to Feb, 15, 2010 (this does not apply to SXSW) This includes record company, promoter, ticket company, band website, or Internet releases.
Bonnaroo: Company has the right to Artist’s exclusivity within a 300-mile radius for a period of 60 days prior and 60 days following the performance.
So Lolla's does seem to be the most extensive, but it's also routinely waived. There are at least 10 bands on the Lolla lineup that are "in violation".
Street fests and summer bookings have definitely taken a hit in Chicago since Lolla's been in town, so I wouldn't mind seeing their radius clause curtailed a bit.
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Post by avocadolady on Jun 29, 2010 14:11:20 GMT -5
They're protecting their investment and I think that's fine, I just think it might be a little too extensive such that it cuts into local businesses' profits. And that's the ultimate question, whether it's a reasonable restriction.
John: We don't even understand our own music Spider: It doesn't, does it matter whether we understand it? At least it'll give us . . . strength John: I know but maybe we could get into it more if we understood it
So Lolla's does seem to be the most extensive, but it's also routinely waived. There are at least 10 bands on the Lolla lineup that are "in violation".
Street fests and summer bookings have definitely taken a hit in Chicago since Lolla's been in town, so I wouldn't mind seeing their radius clause curtailed a bit.
I'd like to see it reigned in a bit too, but it seems to me that when it was Lolla only it wasnt so bad. The addition of two more festivals and more and more street fests probably isnt helping.
So Lolla's does seem to be the most extensive, but it's also routinely waived. There are at least 10 bands on the Lolla lineup that are "in violation".
Street fests and summer bookings have definitely taken a hit in Chicago since Lolla's been in town, so I wouldn't mind seeing their radius clause curtailed a bit.
I'd like to see it reigned in a bit too, but it seems to me that when it was Lolla only it wasnt so bad. The addition of two more festivals and more and more street fests probably isnt helping.
Gathering of the Vibes also has some "exclusivity" clauses with some bands. I know Nateva tried to get Assembly of Dust but couldn't because they were playing Vibes and there was some contractual thing.
Post by hibouxdufromage on Jul 1, 2010 17:59:23 GMT -5
^not anymore, no. These proximity clauses are ridiculous. 100 miles, 30 days before and after should be max. Things like this also put fests like Bonnaroo and CMA in direct opposition to each other, instead of creating a win-win (and increased profit) for both.
Post by nodepression on Jul 1, 2010 23:03:58 GMT -5
Bonnaroo and CMA shouldn't be in competition, if anything it cuts down on the commercial country acts Roo might bite on when they should be getting alternative acts.
I wouldn't want that many (if any) CMA bands showing at Bonnaroo. Two totally different scenes. Though didn't ZBB and Miranda Lambert do both this year?
The 300 mile radius thing is ridiculous. At most it should be 150, if that... more like 100.
Post by belltwala1 on Jul 27, 2010 12:44:50 GMT -5
i believe that you can negotiate somewhat with the bonnaroo contract because i live in nashville and there have been acts that did play mufreesboro or nashville around the time of roo. roo much be more relaxed than lolla.
;D
