Month: October

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Everyone in the touring business is wondering what will come next in this current financial crisis, players both big and small included. Live Nation is a big focus after spending millions to sign the likes of Madonna, Jay-Z, U2, Nickelback, and Shakira to giant 360 deals. Their prudence shows after shedding a total of $465 million in assets since 2006, including $205 million in September to sell its Motor Sports division to Feld Entertainment. The company did this "to repay borrowings under its revolving credit facility, to permanently reduce a portion of its term loan, and to invest in its core music business." Many think Live Nation still paid too much to sign acts like Madonna, even though her current tour is about to break her own gross record. The company is still optimistic and say the current situation has not hurt ancillary revenues and ticket sales. Smaller business are worried. Tour bus outfitters will possibly see a big drop in business if stars and mid-level acts drop down their amounts spent on buses, or if some acts use them at all. Sponsorships are harder to come by when budgets tighten. The same goes for venue-naming rights. But it has been proven that these are worthy investments and typically have a high return of investment.