In the concert ticketing world, even a winky face can seem threatening.
John Abbamondi had to gently break the news to the CEO of Ticketmaster.
In April 2021, Abbamondi, then CEO of BSE Global, which managed Brooklyn’s Barclays Center, faced the expiration of its Ticketmaster contract in September. After reviewing proposals from SeatGeek, AXS, and Ticketmaster, Abbamondi found Ticketmaster’s offer less favorable compared to the other two. With superior technology and better financial terms, including equity, BSE Global chose SeatGeek as its new partner.
When Abbamondi shared the decision with Michael Rapino, CEO of Live Nation Entertainment, tensions arose. A recording of the call resurfaced in the current Live Nation-Ticketmaster monopoly trial, where Abbamondi and Mitch Helgerson, the Minnesota Wild’s chief revenue officer, testified. Both claimed that Ticketmaster executives threatened them with the loss of critical Live Nation concerts if they changed ticketing platforms. The Justice Department argues this indicates monopolistic behavior, which Live Nation-Ticketmaster denies.
Abbamondi identified the voices on the call, saying the nervous voice was his and the angry one was Rapino’s. The court heard an exchange where Rapino used an expletive while expressing frustration over a contractual disagreement, insinuating that Abbamondi never intended to renew with Ticketmaster.
Rapino highlighted competition from the new UBS Arena, suggesting it could attract more Live Nation-promoted shows. Abbamondi interpreted this as an obvious threat, equating it to a situation where cutting off one arm would lead to a retaliatory blow. Abbamondi felt he failed in conveying the decision smoothly.
Despite signing with SeatGeek in October 2021, Abbamondi noted a significant drop in Live Nation shows at the arena. As artists resumed concerts post-pandemic, Abbamondi anticipated Live Nation would rebook acts like Billie Eilish, who previously canceled New York gigs, at Barclays. Instead, her 2021 tour landed at the UBS Arena. When questioned, Live Nation attributed the decision to the artist. Other promoters, however, did not drastically reduce their Barclays bookings.
By 2022, Abbamondi was dismissed months into the SeatGeek contract. Barclays returned to Ticketmaster within the year.
While Ticketmaster wasn’t considered the best ticketing option, Live Nation’s influence as a concert promoter compelled their choice. Helgerson cited similar concerns for the Minnesota Wild at the Xcel Energy Center, where fear of losing shows drove their decision to stay with Ticketmaster, foregoing a $1 million annual gain by switching to SeatGeek.
The Wild, facing competition for concerts with Minneapolis’ Target Center, felt vulnerable after a Ticketmaster executive suggested Live Nation might redirect shows away if they switched vendors. SeatGeek’s offer included “Live Nation retaliation insurance” to cover losses from shows booked at Target, but the threat to venue vibrance deemed it insufficient.
Both venue managements cited complexity and risk in transitioning to new platforms on cross-examination. Transitioning to SeatGeek involved challenges, including a less user-friendly experience and absence of a promoter interface, which could impact scheduling. Additionally, Abbamondi, a friend of SeatGeek’s co-founder, was not fired because of the SeatGeek deal but for other reasons.
A separate contractual dispute added tension between Barclays and Ticketmaster. Ticketmaster sought contract extension due to Covid’s impact on the NBA season, while Barclays believed it ended as initially scheduled. Rapino had earlier requested to counter competitive offers, which might have influenced perceptions of the exchange with Abbamondi.
The jury must discern whether Abbamondi and Helgerson faced credible threats, crucial in deciding if Live Nation-Ticketmaster deserves penalties, including potential breakup.
Live Nation executive Patti Kim’s text to Abbamondi mentioned considering the broader relationship, not just monetary offers. This week, the jury may hear from SeatGeek CEO Jack Groetzinger, reportedly offering higher financial incentives.