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VIP NEWS
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VIP NEWS >
MARCH 2017
McGowan’s
Musings
This edition of the Musings is being written
many a legendary hangover! This again
good at paying apparently. Led Zepplin’s
on an old Dutch barge in the town of Sete in
sold out edition of the event that coined the
famous manager Peter Grant learnt a lot of
France – can you tell? There is an occasional
phrase, ‘the live music industry’, played host
his methods from touring with the maestro
lurching when other boats sail past, this is
to some 1100 delegates, with many turned
when young. Chuck would often use ‘pick
not too dissimilar to the crowded jostling
away, and was particularly full on, both in
up’ bands in the UK and elsewhere, and I was
that went on in Bertie’s bar (supposedly
the conference rooms and at the many other
once asked to recommend a guitarist, bass
this was to be re-named Louis’ Bar at some
side events. Sitting on a barge is perhaps a
player and drummer for a London date, I put
point…) in London’s Royal Garden Hotel a
necessary recovery! A change of days to
forward three members of a struggling band
couple of weeks ago during the 29th edition
mid-week, left a lot of people, including me,
called Supertramp – not many people know
of the International Live Music Conference.
confused about what day was what, but
about that combination, but you do now!
This bar, as many will know, is an extremely
that’s happening a lot anyway I now find!
important networking location active until
(See Manfred Tari’s report in this issue of The
In reference to other legendary musicians,
the early hours, and the location of many
News)
all from London, somewhat younger than
a new business deal, and the provider of
COLOPHON > VIP-News is published by: VIP-Booking.com Enghaven 19 Attrup 8444 Balle Denmark Managing Director: Ronni Didriksen rd@vip-booking.com General Manager: Peter Briggs pb@vip-booking.com Writer and editorial: Allan McGowan am@vip-booking.com Writer: Manfred Tari mt@vip-booking.com For advertising enquiries please contact: Peter Briggs pb@vip-booking.com +46 70 77 60 480
2
Mr.Berry, and thankfully still alive and active Ed Bicknell’s quietly spoken but extremely
in their early 70’s, in fact Talking about My
informative guest for his regular breakfast
Generation, The Who, have deferred their
meeting – on Friday – not Sunday – was ex
previously
U2 manager Paul McGuinness. Amongst
have announced a residency in Las Vegas,
other things I liked what he had to say about
putting off retirement to fit in ‘a final tour’.
Brexit and tax: “Copyright doesn’t depend
The famous Sin City venue Caesars Palace
on the EU, and copyright industries like film
announced that The Who will kick off a ‘first
and television and music are huge in Britain.
run’ of six days at the hotel on July 29. And the
I don’t think Brexit is the end of the success
other bit of news about London boys ‘done
of the British music industry. But it would be
good’ concerns Muswell Hill’s Ray Davies,
useful if, for instance, Britain were to treat its
our prospective (possibly) King, knighted
music industry with a bit more respect and
The Kink a few days ago for his services to
love. In film, television and post-production
Culture. I wonder if Sir Ray will write a song
in Britain there are extensive tax credits
about it – maybe he already has?
announced
retirement,
and
offered by the state. Why are those tax credits not offered to the music business?”
Finally, with the Festival Season bearing down
Why indeed?
on us, I note that a report by the Association of Portuguese Festivals reveals there were
The legend Chuck Berry has died, although
249 music festivals held in Portugal in 2016
he made it to 90, not a bad score for rock
– 39 more than in 2015, or an 18% year-on-
‘n’ roll, particularly considering that he
year increase.
pretty much invented the genre! According to many Chuck was not the easiest man to
So there you go – I’m off to Mexico next
get along with, and often would not stir
week on holiday and will report back in
from his hotel room, or even his bed till he
the next issue, in the meantime Ladies and
saw the colour of the money, nor was he
Gentlemen – The News!
VIP NEWS >
MARCH 2017
Oliver Hoppe takes over at Wizard Promotions From VIP-Daily News Oliver Hoppe has taken over the role as managing director of Wizard
Maiden, Bryan Ferry, Foreigner, Zucchero and, of course, the first
Promotions Konzertagentur GmbH, a subsidiary company of DEAG
edition of the Matapaloz Festival at the Hockenheimring in June 2017
Deutsche Entertainment AG for the past four years.
featuring bands such as the Böhse Onkelz, Slayer, Five Finger Death Punch and many more.
Ossy Hoppe remains closely associated with the company as Chief Advisor Artist & Repertoire and will support particularly the agency
Ossy Hoppe: “I am extremely pleased and, at the same time, also
and artist network. This now completes the well-prepared and far-
reassured to be able to fully hand over the management to my son.
sighted management transfer which will ensure that the company is
It was always my great wish that Oliver would continue my work and
continued to be managed successfully in the future also across the
with his many years’ experience as well as considerable professional
generation change.
expertise he unites all the elements which will guide the company into a successful future. Oliver has been managing the business for
Ossy Hoppe is regarded as the trailblazer of hard rock in Germany.
already some time now and the transfer was a smooth processes. I
During the past four decades he has shaped and influenced the
will, of course, continue to advise the company and support artists
development of live music from various positions. Already early on,
with whom I have a long-standing relationship.”
he worked closely together with artists such as Deep Purple, Mike Oldfield, Gary Moore and Whitesnake. In 1981, he established,
“The flair, creativity, charm and also assertiveness with which Ossy
together with his company Shooter Promotion, one of the first big
Hoppe creates and successfully realises ideas and projects is unique.
festivals in Europe – the „Monsters of Rock“. Hoppe lived for a longer
Oliver Hoppe is exactly the right manager to guide the idea and spirit
period in England and the USA and worked, partly still to the present
of Wizard Promotions into the future together with his strong team
day, with greats such as Aerosmith, Kiss, Iron Maiden, Sting, Metallica,
and provide the right impetus. I really enjoy our collaboration and look
Bee Gees, Tina Turner, Bon Jovi, Guns n Roses, Rolling Stones, U2 and
forward to further joint cooperation on the successful development
many more.
of Wizard Promotions,” says Christian Diekmann of DEAG.
Since 2004 Ossy Hoppe has been continuing his work in the
Oliver Hoppe: “I thank my father and DEAG Deutsche Entertainment
live business with the newly established Wizard Promotions
AG for the trust and feel honoured to continue the history of
Konzertagentur GmbH which focuses on, amongst other things, the
the Wizard Promotion concert agency into the future as one of
promotion of new artists.
the leading concert organisers in Germany. With a strong and homogenous team, we have successfully managed to respond to
In 2012 Oliver Hoppe moved up into operative management. His
the new challenges of the event market in recent years with the
professional experience in brand strategy which he gained from the
values and core competencies of a traditional tour event organiser
strategic consulting of Ledavi Emotional Brand Building since 2007,
as the foundation. I really enjoy the interesting work of combining
amongst other roles, offered Wizard Promotions more marketing
innovation culture with the classic values of a family business.”
and communication expertise. This new expertise was, for example, responsible for the immense comeback success of the band Böhse Onkelz which resulted from the innovative launch campaign of the open air series at the Hockenheimring in 2014 and 2015 as well as the soldout arena tour (20 shows) in 2016 with a combined total of 850,000 visitors. In this way, the agency has been able to further develop its position in recent years as one of the leading concert agencies in Germany. This can also be seen in the current year with many up and coming bands such as Blackberry Smoke, Steel Panther, Monster Truck and the Grammy winners Ghost and Chris Stapleton as well as tours by established greats such as Aerosmith, Kiss, Iron
Oliver and Ozzy Hoppe
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VIP NEWS >
MARCH 2017
Albert Salmerón elected president of APM Spain From VIP-Daily News
Albert Salmerón, director of Animated Productions, has
S P O T L I G H T
been elected new president of the Association of Promoters Music (APM) replacing Pascual Egea. APM has announced that Tito Ramoneda (The Project) has been elected Vice President. The board of directors will be Neo Sala (Doctor Music), Maricruz Laguna (GTS) and Julio Martí (Serious Fan Music). Salmerón has been a member of the board for the past four years, a time in which he has gained experience to carry out a “discrete, conflict-free and no-noise” leadership Salmerón, who was musical director of SOS 4.8 and co-
P A L A C E
S H O W S
B R I G H T O N P I E R P A R T Y T H U R S D A Y 1 8 T H - M A Y - 2 0 1 7
SLAVES
B R I G H T O N D O M E - S A T U R D A Y 2 0 T H - M A Y - 2 0 1 7
RAG’N’ BONE MAN RAY BLK
organizer of FIZ, arrives at the position as the head and founder of Producciones Animadas, a promoter with more than 25 years of experience in which he has been responsible for tours in Spain by artists such as Crystal Castles or George Ezra. Both he and the director of Primavera Sound, Alberto Guijarro, received just prior to the vote an achievement for their 25 years of work in the Live Music industry.
C O R E
P R O G R A M M E
67 ABRA CADABRA ALMA Á S G E I R B A B E H E AV E N B A LOJ I CABBAGE CHERRY GLAZERR C H I L D H O O D DAG N Y DA N C R O L L DIANE BIRCH DOUGLAS DARE DREAM WIFE D R O N E S C L U B E S T R O N S F LY T E G A L L O P S G I R L I G O AT G I R L H M LT D I B I B I O S O U N D M AC H I N E JA N E W E AV E R J AY S O M L I T T L E H O U R S M A R I K A H A C K M A N M Y S T I C B R AV E S N OVA T W I N S O F F B LO O M OV E R COATS PUMAROSA RAG’N’BONE MAN R AY B L K R AY E S H O G U N S L AV E S S L Ø T FAC E S M E R Z S T E F F L O N D O N S T U R L A AT L A S S U P E R F O O D T H E AG E O F L .U. N . A T H E A M A ZO N S T H E D I ST R I C T S T H E JA PA N E S E H O U S E T H E M AG I C G A N G T H E PA R R OTS T I G E R TOW N YO N A KA YX N G B A N E Z A K A B E L A N D
M A N Y
M O R E
T O A C C E S S T H E S P O T L I G H T S H O W S P U R C H A S E S E PA R AT E T I C K E T S OR HEAD TO OUR WEBSITE FOR INFO ON FREE SPOTLIGHT S H O W T I C K E T S W I T H A F E ST I VA L W R I ST B A N D. E AC H T I C K E T I S E XC H A N G E D F O R A F E ST I VA L W R I ST B A N D A L L O W I N G AC C E S S T O C O R E P R O G R A M M E V E N U E S S U B J E C T T O C A P A C I T Y.
Albert Salmerón
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VIP NEWS >
MARCH 2017
‘Phenomenal Response’ to the Borderline Refurbishment Allan McGowan am@vip-booking.com Promoters DHP Family revealed the results of the extensive refurbishment of the Borderline, the long running venue in Soho, London, now the newest addition to its venue portfolio, at a press launch on 15 March, with the first live music gig taking place the next evening. George Akins, DHP Family owner said: “We are very happy with the results of the refurbishment. The feedback from artists, agents and press has been phenomenal. The atmosphere at the press launch on Wednesday showed how well a club night will work and the gig last night proved that we made the right choices with room
George Akins - Owner DHP Family
layout to get the best viewing and production values.” DHP expects the extensive refurbishment and new layout to
premium offer in terms of design, service and product as well as
renew the fortunes of what has been referred to as one of the
programming and entertainment.
last surviving landmark live music venues in the heart of London’s Soho district. Borderline has a presented an impressive range and
It has an amazing music heritage and we want to take that legacy
coming artists and established stars since it opened in the late
forward to re-establish the Borderline as the leading live music
1980s. R.E.M, Rage Against the Machine, PJ Harvey, Oasis and Eric
venue in central London for future generations.”
Clapton have all played the venue along with UK debuts of some
major international artists.
DHP Family, own Hackney’s Oslo, Nottingham’s Rock City and
recently reopened The Garage in Islington. DHP Family’s head of
DHP Family’s MD George Akins said: “As well as complete design
venue programming, London, Ed Lilo will be looking after the diary.
overhaul, we plan to introduce our award winning model of
For more information on the upcoming schedule, visit:
venue management to bring the Borderline up to the company’s
www.borderline.london
The Borderline London
5
VIP NEWS >
MARCH 2017
Agents Reveal Views on Changes in Day-to-Day Work at ILMC29 Allan McGowan am@vip-booking.com
Whilst at ILMC 29 I got the opportunity to ask the Agents in the Agency Business panel to describe the changes that have taken place in their day to day work:
Clementine Bunel of ATC Live told the panel audience: “A lot of artists I work with personally don’t have any management, so there is a lot more going out of your way and facilitating, connecting and surrounding the artist with the right people. It’s quite exciting, but it’s just another service you provide, and not necessarily one you can monetise – it’s just what you’re providing as an agent today. I think what’s happening now is quite exciting – maybe I should be scared, but I’m not.”
Brian Ahern of WME explained: “The ever-increasing responsibilities of a modern music agent are a ‘double-edged sword. While agencies are making more money than ever before, agents are doubling our hours and doubling our output.”
Jules De Lattre of UTA highlighted the growth of the Company’s digital division: “Part of my job now is about analysing how our acts exist in the digital space – streaming numbers, social media – and working out how that translates in the live arena. An act with huge activity online will not necessarily be worth ticket sales – trying to translate that into the physical, ticketed world is really interesting, and something we think about on a daily basis.”
John Giddings of Solo Agency said: “With the emergence of live performance as the primary way in which musicians earn money, agents are now the people in the driving seat of an artist’s career. We used to have to do what the record companies told us. But now everybody buys tickets and nobody buys records, so we tell them what to do.”
6
VIP NEWS >
MARCH 2017
Much Ado About Secondary Ticketing in the UK! Allan McGowan am@vip-booking.com The ongoing argument about secondary ticketing continues to heat
bot attacks, stronger enforcement of existing consumer rights laws,
up, with the UK Government weighing in to put a stop to touting
and the instigation of further action if the industry does not act
with ministers accepting in full the recommendations of a review by
against rogue ticket traders. Many artists, including Ed Sheeran have
Professor Michael Waterson. His report proposed that ticket sellers
expressed their anger after seeing their tour tickets ending up on
should have tougher anti-bot measures in place, including reports of
secondary sites at highly inflated prices.
Viagogo No Show: The government is insisting that the big
Commons; a follow up select committee
The Culture, Media And Sport Committee
companies in the secondary ticket market to
hearing was arranged for March 21st to
chairman Damian Collins said, “It is of
do more to identify ticket touts separating
hear evidence on ticket abuse from Ed
considerable disappointment to us that
them from individual fans who may sell
Sheeran’s manager Stuart Camp of Rocket
Viagogo have decided not to send a
tickets for events they can no longer attend.
Music, and promoter Stuart Galbraith of
representative,” said committee chairman.
Kilimanjaro Live. Secondary ticketing site
“Despite the fact that they have a substantial
including
Viagogo were also called upon to appear
office in London they do not believe that
Ticketmaster and StubHub attended a
but the Swiss based company failed to
they have adequate representation in the
meeting last November at the House of
supply a representative.
UK in order to assist the committee with its
Several
leading
Companies,
enquiries.
Viagogo no show
Given that other companies that operate in the primary and secondary ticketing space like Live Nation [whose Ticketmaster subsidiary runs resale sites Seatwave and Get Me In] and [StubHub owner] eBay have given evidence to the committee, it is of considerable disappointment to us that Viagogo don’t feel that they have any oral evidence that they can contribute.”
Online Guide to Help Beat Touts: Artists including Ed Sheeran, Mumford & Sons, Radiohead, Royal Blood, Mark Knopfler, Wolf Alice and You Me At Six have endorsed a new online guide to help music fans beat ticket touts. The online guide has been put together by FanFair Alliance, the anti- industrialscale online ticket touting campaign group to help fans “avoid ticket touts and profiteering secondary ticketing sites”. The Guide which offers 10 Tips for beating touts when buying tickets online, is also backed by Members of Parliament Nigel Adams and Sharon Hodgson along with various ticketing companies.
FanFair guide
7
VIP NEWS >
MARCH 2017
ILMC 29 - Kickoff Event For A New Era Manfred Tari mt@vip-booking.com
For most attendees the recent edition of
applied the term “live music industry.”
at the end of the last century until ILMC
ILMC perhaps proceeded much as usual.
But ten or fifteen years ago this business
2017 and this year’s edition delivered the
Networking, going to panels, a bit of
was miles away from being considered
evidence for this development.
dealing and wheeling with the delegates
as even part of an industry. The financial
and most likely a lack of sleep. But from
dimensions of it compared to those of the
This news is still probably not based on self-
a personal view the biggest eye opener
insurance or automobile industries were
awareness for the majority in this business,
resulted from a conversation with an ILMC
just small scale business, perhaps good
it does not come across as a sensation, it is
first time visitor.
profit rates but revenue-wise located
just an observation you may discover when
somewhere between the retail business of
listening to delegates and panels at ILMC.
The young man, a journalist, when asked
stamp-collectors or hedge trimmers.
what he thought of the event answered that
The keywords and phrases therefore do
he wasn’t aware of any new developments
Twenty years ago the record industry was
not sound exciting enough for an ILMC
or exciting news. For him the conference
still the leading gross contributor within
newbie to perhaps notice them, but lining
just proceeded ‘as usual’, while panels
the value chain of the music business.
them up completes the picture. Global
and conversations with delegates did not
Record companies were the first listed
deals & bots, new business units for legal
deliver any surprising or new insights.
on stock exchanges way back in the
issues, marketing, sponsoring or social
sixties and seventies. As a reminder, SFX
media activities within company structures
for
Entertainment, the forerunner of Live
of multinational conglomerates, displays
somebody who takes a neutral view when
Nation in the US and DEAG in Germany
the same sophistication as the major
scrutinising the ILMC absolutely correct.
undertook their debut on the stock markets
record companies applied to their business
The state of the live music business as it
in 1997 and 1998.
decades ago.
However, this year the ILMC celebrated
Just bare in mind, ILMC for the second time
its 29th edition and between the lines as
put on a panel discussing the subject of
But when taking the history of this
appeared to be a kick-off event where the
“direct licensing.” A new issue? Certainly
conference and the evolution of this
live music business finally emerged from
not, but a new development and challenge
business into consideration the picture
a former family business into a proper
that the live music industry has recently
is changing rapidly. For many years ILMC
industry. Yes, this conversion took just
been confronted with. And in particular
has been the one and only convention that
twenty years from its early beginnings
this panel like last year revealed that the
An
interesting
observation
and
reveals itself at the event probably appears at first view as just ‘normal.’
8
VIP NEWS >
MARCH 2017
majority of market participants still have difficulties understanding the working and accounting methods of copyright collection societies. But what does it says about the live music industry? This business is evolving, from organic growth to gradual development into the industrialized management of concerts and lives events. Not too long ago aspects such as the lack of contracts between agents and artists were issues being discussed at ILMC. These days are over thanks to global deals, sounding retrospectively
rather
like
teething
Opening ILMC 29
problems. Secondary ticketing is another example
data and blockchain that is speeding
dominance, as it exists in the record
and another highly meaningful milestone
up the conversion from once self made
industry. But this year’s ILMC has been
that underlines how the conversion of
impresarios towards fulltime employees
an eye opener for noting that live music
the live music business is proceeding. For
being rewarded with stock options for
business is converting and fully adopting
many years a subject of debates at IMLC,
their contributions towards the companies
industrial work and business schemes.
often still focusing on the pros & cons of
earning results.
this extraordinary “side”-business. But the
The conference agenda of ILMC at least
profitability of this part of the ticketing
Still then, ILMC is serving and hosting
did not include the topic of a “new era”,
business paved the paths for the innovation
the remaining majority of those who run
but when assembling the jigsaw puzzle of
inventory of touts and the ones who
or work for an independent company.
covered topics, when listening to younger
officially or un-officially integrated this
Nevertheless the corporate companies
and older delegates the hidden message
business within their value chain.
are growing, employing and searching
appeared to be that the new era of the
for people with a distinctive passion for
industrialization of the live music business
It is the utilization of algorithms and bots,
music and their work. But still, the live
started at ILMC 2017.
geo-scoring and payment solutions, big
music industry is far away from market For those who claim it started earlier it is recommended to take a look at the revenue figures of the very few corporate concert companies. Live Nation just in 2016 reached for the first time a revenue result of $8.4 billion, while those of Coca Cola came down in 2016 from $44.2 to $41.8 billion. For those like the young journalist as mentioned at the beginning of the article, the
era
of
an
industrialized
concert
business isn’t even new, for somebody like him it appears just as being “normal.” And what does veteran Wayne Forte says at the Agents Panel, how is he responding to
Panel at ILMC 29
this new normality: “No f...ing sleep, work much harder”...
9
VIP NEWS > INDEPTH STORY >
MARCH 2017
Live Nation taxes Manfred Tari mt@vip-booking.com A worthwhile lesson on how to pay less
one submitted to the SEC with 106 pages,
work well enough. Many SME’s will mostly
than one percent income tax.
apparently containing much more detailed
work nationally and will not have permanent
information.
establishments or subsidiaries abroad, but undertake foreign work from their national
The facts upfront: In 2016 in the US Live Nation paid on a federal level $ 500.000,
But in a time where investigative media
base. Then only domestic taxation applies
on a state level $5.4 million (Delaware) and
reports reveals scandals such as the Panama
and the result is reasonable. But income/
abroad $29.2 million on income tax, when
Papers or Lux Leaks the question of tax
corporate taxation is not a matter of the EU,
reaching for the first time a revenue result
avoidance reaches
new levels of public
but has remained with EU Member States,
of $8.35 billion as filed in the annual report
awareness. In fact Live Nation did not
while outside the EU every state has its own
for the SEC (US Security and Exchange
hide any of those figures in its report for
tax rules anyhow, which means that very
Commission)
the SEC, but paying income tax of just not
often tax rules do not fit and double or
more than $500.000 in the US on federal
excessive taxation can easily happen, which
Additionally the company declares in its
level and on a state level $5.4 million in the
that is not fair.
regular report: “The amount of earnings at
tax heaven of Delaware when gaining at
December 31, 2016 that has been earned
the same time a turnover of $8.35 billion
To take away these obstacles, international
over time, and permanently reinvested,
raises the question regarding the imbalance
companies often set up structures to bring
was approximately $1.4 billion. It is not
of taxation for corporates and the one for
down the double/excessive taxation. This is
practical to determine the amount of
smaller and medium sized companies.
often considered as tax avoidance, but is in
federal and state income taxes, if any, that
practice bringing down the tax burden to a
might become due in the event that any
more reasonable level.
remaining available cash associated with VIP-News: Over the years you have
these earnings were distributed.”
taken part in several high level meetings Since the spin off by Live Nation from
or hearings with officials concerning
Clear Channel Communication the editor
taxation issues. How meaningful is
of the VIP-News section “Business News -
the political impact on the potential
Music In Shares” reports continuously on
outcome
losses and debts as filed by Live Nation in
resulting from such consultations?
the
decision
finding
its regular reports. However, the magic
This question becomes even more relevant
of accounting and figures in business
due to the reported overall earnings of $1.4
DM: The meetings about taxation at EU level
reports by corporate companies can be
billion by Live Nation, wherever they might
have been disappointing, unfortunately,
mind-boggling. Especially the 2016 annual
be located. Deeply impressed regarding the
which has to do with the very limited
report caused some extra research efforts
advantages on the taxation of the likes such
power that the EU has regarding income/
to identify where the company allocated
as Live Nation, VIP-News spoke with Dr.
corporate taxation. My membership of the
the loss of $0.23 per share when actually
Dick Molenaar from All Arts Tax Advisers in
Expert Group for taxation of cross-border
reporting a net profit of $2.9 million and
the Netherlands.
individuals has been very positive in the final report, but already in advance I expected
revenue of $8.35 billion. VIP-News:
tax
that not much would be done with this
In 2016 the loss was located in the section
systems in the world of enterprises and
report. The EU tax court cases, in which Dr.
“Accretion of redeemable non controlling
businesses? Do you believe that SMEs
Harald Grams has forced decisions (Gerritse
interests”
and corporate companies are dealt
and Scorpio), have been more successful.
with in an even manner?
This is different in regard to meetings about
and
declared
with
$49.95
million, resulting out businesses of which
How
fair
are
our
VAT and social security in the EU, because
Live Nation holds less than 50 per cent.
10
or
These figures can be found in the regular
DM: Not so fair, because taxation of cross-
these are matters of the Union and therefore
business report with 13 pages or in the
border services and ownership does not
officials are willing to act on them.
VIP NEWS > INDEPTH STORY >
MARCH 2017
But at OECD (Organization for Economic Cooperation and Development) level, where the bilateral tax treaties between states are coordinated, I have direct access to the decision makers and that can be very effective. On the negative side I have not been able to create enough power to put them under real pressure to change the tax rules, so until now I have only achieved partial success. E.g. the live music world is not organized in a real association and therefore cannot support the lobby at OECD level. VIP-News: The Trump administration and even the UK Government in the light of the Brexit intend to undertake tax reforms that primarily foresee lower tax brackets in order to stimulate the economy. Is this a worthwhile approach or just a consequence of a policy from the Reagan/Thatcher era that is to a certain extent responsible for today’s social and economical inequality? DM: That depends on how you believe the
Dick Molenaar
world should be organized. A part of the cultural program is vulnerable and needs financial support from the government
approximately $1.4 billion. It is not
DM: It is not right to compare the tax rates
to be created and developed for the
practical to determine the amount of
of employees and companies as such. You
market. A broader and more varied cultural
federal and state income taxes, if any,
need to add the tax on the dividends for
program than the market would allow,
that might become due in the event
the shareholders of the companies to come
interacts with society at a higher level. But
that any remaining available cash
to a realistic comparison of the income that
that is not possible under the US and UK
associated with these earnings were
is free to be used for private consumption.
approach, where the market dictates what
distributed.”
The profit after tax for a company has a
can survive.
different function in the economy than the DM: US federal tax is so low because
VIP-News: In 2016 Live Nation in the
foreign tax has been credited to eliminate
US paid income tax of $ 500.000 on
double taxation.
federal level, $5.4 million on state level
net salary of an employee. VIP-News: Live Nation, like Apple, Starbucks, Vodafone and many other
(Delaware) and $29.2 million abroad,
VIP-News: Normal employees with
corporate companies benefits from a
on a revenue result of $8.4 billion.
taxes on wages depending on their
taxation system that in nowadays
earnings can pay up to 30 percent and
often criticized as those companies
company
more on their income. Applying that
using legal opportunities to downsize
declared in its annual report as filed
figure to the overall declared profits of
their tax burdens, in ways that the
for the SEC (US Security and Exchange
$1.4 billion by Live Nation that would
majority of independent companies
Commission): “The amount of earnings
come to $420 million. Can you please
simply
at December 31, 2016 earned over
explain how Live Nation plays the
Would you say that the majority of
time, and permanently reinvested, was
game...?
recent and current generations of
At
the
same
time
the
do
not
have
recourse
to.
11
VIP NEWS > INDEPTH STORY >
MARCH 2017
politicians and officials actively support
philosophy of tax competitiveness. On
industry from the sixties to the nineties,
such economical
for
the cranky left that is very annoying, I
when major companies took the lead in
corporate companies, widely ignoring
advantages
can see that. But (that) is why Ireland
the music industry?
or not aware of the consequences
has stayed afloat.”
the imbalances of such policies may cause?
DM: Yes, I believe so. Many spectators profit In reference to the intended tax reform
from the big shows, which are brought by
by the Trump administration, does
these international companies. But hopefully
DM: No, the reason being that much has
Bono appear “cranky left” to you now,
also new talent will still have the chance to
been done to contest this by the politicians
when still appealing to politicians to
be discovered and developed.
in the past two years with the BEPS program
fight poverty in Africa? VIP-News: Even if the Dutch party PPV
(Base Erosion and Profit Shifting). At OECD level states have decided to come to a
DM: I agree the Bono has a double standard,
headed by the populist Geert Wilders
multilateral agreement binding all states at
avoiding taxation by transferring his profits
did not become the biggest party in the
the same time, to change their tax rules so
from Ireland to an offshore structure on
Netherlands at the recent elections in
that these tax avoidance structures will not
one hand, while he also fights poverty in
March, it is nevertheless evident that
be possible anymore and that tax will be
Africa, which is partly created by the same
populism and neo-nationalism is still
paid as much as possible in the states where
economic market system. His tax structures
on the rise in Western Democracies.
the value is created, while double taxation
will not be possible anymore when the BEPS
How much of a threat do you consider
is still avoided. The BEPS program is on the
program has been implemented.
this political and social climate to democracy in these countries?
brink of implementation. VIP-News: The live music community VIP-News: Besides “tax optimisation”
is facing the growth and consolidation
DM: Not a threat in well-developed western
-
transnational
of companies such as AEG, CAA, CTS
societies with a democratic system of
companies artists like the Rolling Stones
Eventim, Live Nation and WME. Over
equal representation. In the Netherlands
or U2 take advantage of the tax system
the years they turned into multinational
we always need to work together and it is
in the Netherlands. In an interview
companies, backed with private equity
almost impossible that one party will get the
with The Observer U2 lead singer
or other forms of investment. Is the
majority. There will always be a majority of
Bono in 2011 stated: “At the heart of
live music business entering a new era,
voters with enough sense to understand the
the Irish economy has always been the
similar to the heydays of the record
difference.
proceedings
by
Besides Dick Molenaar, VIP News additionally asked
tax. In the USA it is a low taxation but in comparison to other
Michael Klare about the details of taxation for Live
foreign countries it is a high taxation. Especially if you keep in
Nation. Klare is a certified tax adviser and partner at
mind that the income of the foreign subsidiaries were taxed
Antares Revision in Dortmund.
in their respective countries. In Germany you should have to pay taxes on 5% of the dividends paid by foreign subsidiaries
Live Nation Inc. is an Incorporation which is registered in
- there are similar tax laws in other European countries.
Delaware - for tax reasons. A main advantage for Live Nation is that it has to pay Federal Corporate tax (up to 35%) only.
In accordance to the financial statements (page 52) the Live
In Delaware Live Nation has to pay State Tax (8,7%) on the
Nation subsidiaries have accumulated earnings of 1.2 billion
income from their business activities in Delaware - not in the
dollars within their financial statements which can be paid to
rest of the United States. Therefore Live Nation saves up to
the holding company. The dividend payments would cost a
8,84% of its income compared to a registered office in Los
maximum of 420 million dollars of Federal Corporate tax (if
Angeles.
you recognise tax loss carry-forwards it might be only 20% or 240 million dollar). According to the Company’s statement
12
Dividends received from foreign affiliated companies will be
about the income taxes there are no deferred taxes in the
taxed with up to 35% Federal Corporate tax - without State
balance sheet to settle the risk of these tax payments.
VIP NEWS >
NAMES & JOBS
MARCH 2017
3 new agents at UTA From VIP-Daily News United Talent Agency (UTA) has hired Mike “Mike G” Guirguis, Bex
Most recently, Guirguis was the founder of NiteVision Management
Majors, and Billy Wood as agents.
where he managed such notable artists as Chris Brown, guiding the singer to the top urban touring act in 2015, as well as multiple
The announcement complements UTA’s appointment of Greg Janese
number one Billboard hits.
to lead the agency’s corporate and special events division, along with the recent announcements of Rob Walker as a music agent and
In addition, he managed Teyana Taylor, DJ Sourmilk, and Dave Aude
Toni Wallace as head of Music Brand Partnerships.
among others.
The firm said the additions would ‘focus on new opportunities for
Guirguis also was a member of the management team for R&B artist
artists and to establish partnerships across all areas of entertainment
Akon, and NiteVision formed a co-venture with Akon’s record label,
and building new businesses around clients’.
KonLive Distribution. Prior to NiteVision, Guirguis was a senior radio executive at Emmis Communications. He began his career as an
“I’m proud to welcome Bex, Billy and Mike to our rapidly growing
executive at iHeartRadio KOST 103.5 FM. Guirguis will be based in
music team,” said UTA CEO Jeremy Zimmer. “We are committed
Beverly Hills, CA.
to continuing to hire industry leaders who will collaborate across the agency to maximize opportunities for clients. Each one of these
In a move designed to strengthen UTA’s international booking
agents brings an extraordinary understanding of the business and
department, respected UK agent Bex Majors has moved to the U.S.
we are excited to utilize their expertise and skills as we continue to
and will be based out of the agency’s Beverly Hills office.
expand our suite of services.” She will book international dates for a diverse roster of artists Mike Guirguis will focus on creating new opportunities for
including Amanda Palmer, PVRIS, Neck Deep, Halestorm, Highly
artists, including establishing new partnerships across all areas of
Suspect, Creeper, Starset, Attila, The King Blues, K.Flay, and
entertainment and building new businesses around clients.
Manchester Orchestra, among others.
(Pictured from left to right - Mike “Mike G” Guirguis, Bex Majors, and Billy Wood)
13
VIP NEWS >
NAMES & JOBS
MARCH 2017
Majors began her music industry career as a promoter in Cardiff,
In 2010, Wood joined William Morris Endeavor (WME) where he
Wales. She then went on to become the in-house promoter at
booked acts internationally across the hip hop and pop spectrum,
Cardiff Barfly, followed by a stint as booking agent at UK dance
representing talent such as Alexis Jordan, Blue, Section Boyz, Tinie
music promoter Helter Skelter in 2005.
Tempah, Tinchy Stryder and Wiley. Wood was featured in Music Week’s “30 Under 30” list in 2016.
In 2006, she joined CAA where she played an essential role in developing the music division. Throughout her career Majors has
Music touring and talent representation house UTA Music is counts
worked with a wide array of talent including Mercury and Grammy
amongst its clients the likes of Mariah Carey, Chris Brown, DJ Khaled,
Award winners, while delivering thousands of sold out shows globally.
Guns ‘N Roses, Muse, Toby Keith, David Gilmour and emerging stars such as G-Eazy, Rachel Platten, X Ambassadors, Christine & the
UK music agent Billy Wood will book international dates for Christina
Queens, Milky Chance, and Chris Janson.
Milian, Dappy, Diggy Simmons, Fekky, Grim Sickers, Run DMC, Solo 45, Stylo G and Tinchy Stryder, from UTA’s London office.
In 2015, the music division significantly expanded with the
Wood began his talent agent career in 2007 at Create Music. He
acquisition of The Agency Group, the world’s largest independent
moved on to Mission Control Artist Agency in 2009, where he built
music agency, with offices in New York, Nashville, Toronto, Miami
a significant UK urban roster including Tinie Tempah and Wiley.
and Malmo, Sweden.
Greg Janese leaves paradigm and joins UTA From VIP-Daily News Greg Janese has joined UTA as Head of
Janese will be based in Nashville and will be
Corporate and Special Events.
responsible for booking the agency’s roster in those categories and will also work
Janese joins UTA from Paradigm, where
closely with other departments throughout
he was employed for 12 years and
the agency.
headed the corporate and special event division. Prior to joining Paradigm, Janese
Jeremy Zimmer, chief executive officer,
was
Entertainment
co-founder of UTA said, “Greg is a key
Corporation, a corporate event production
executive who will help us continue
company. While at TBA, Janese led the
to strengthen the bridge between our
company’s expansion into the corporate
artists and corporate America. UTA is
communications business through strategic
committed to fulfilling the promise of full
acquisitions and internal growth.
service representation and Greg will be a
president
of
TBA
tremendous asset in that regard.” He
joined
TBA
after
selling
Avalon Janese said, “I’m honored to take this
founded, to the entertainment concern.
role at UTA, and to have the opportunity
Avalon Entertainment Group was a concert
to work alongside Jeremy Zimmer and
visionary, forward-thinking and specialized
promotion and production company that
so many other talented executives at a
services across many areas of their work.
specialized in producing entertainment
company that is truly raising the bar within
UTA is leading the way, and that’s why I’m
marketing
the creative community. Artists today
so excited to join this team and focus on
are looking to their representatives for
the corporate event market.”
events
and
headline
entertainment for the corporate market.
14
Greg Janese
Entertainment Group, a company he co-
VIP NEWS > BUSINESS >
MUSIC IN SHARES
MARCH 2017
Music In Shares Manfred Tari mt@vip-booking.com
Live Nation Invests in The Isle of Wight Festival Allan McGowan am@vip-booking.com Many years ago I managed a record shop
Rolling Stones, The Who, David Bowie,
Live Nation has the largest and most
in Southsea in the City of Portsmouth. One
Muse, Foo Fighters, Bruce Springsteen,
diverse platform of festivals in the world,
of the things we did, besides sell records
Paul McCartney, Pearl Jam, Kasabian,
and will add this event to the 86 or more
was sell tickets for local clubs and concerts.
Amy Winehouse, Kings of Leon, Jay-Z,
events that it operates around the world.
The biggest events we sold tickets for
The Strokes, Coldplay, The Sex Pistols, The
were the original Festivals, which took
Police, Blondie and Biffy Clyro. This year’s
Denis Desmond, Chairman of Live Nation
place across the waters of the Solent on
edition will see more than 100 acts playing
UK, Live Nation Entertainment commented,
the Isle of Wight. Things were touch and
across eight stages and an expected
“John Giddings and the Solo team have
go for the promoters of these early festival
audience of 42,000 with David Guetta,
developed the Isle of Wight Festival to be one
events and I well remember their frequent
Run DMC, Arcade Fire and Rod Stewart
of the most iconic festival brands in the world
visits to the shop in search of cash from
headlining.
and it’s fantastic to be able to add it to our
ticket sales. The series of festivals between
growing and diverse portfolio of festivals,”
1968 and 1970 offered a line up including
Now the concert and festival giant Live
Jimi Hendrix, The Who & The Doors, and
Nation has joined forces with John Giddings
John Giddings said, “After 15 hugely
is still regarded as the first major festival
to invest in the Isle of Wight Festival. Under
successful and glorious years, we have
in the UK, considered an equivalent to
a new investment agreement, Live Nation
been looking at how we can elevate and
Woodstock.
via LN-Gaiety has become the majority
take the Isle of Wight Festival to the next
shareholder in the Isle of Wight Festival and
level. This partnership with Live Nation will
The event was revived in 2002 by agent
will work alongside John Giddings and Solo
give us the ability to access the company’s
John Giddings and Solo Music Agency
Music Agency, who will continue to direct
scale and talent pool, bringing more acts
and since then the stages have hosted The
and run the festival.
and a better experience to the UK.”
AEG Live is now named AEG Presents Allan McGowan am@vip-booking.com The
world`s
second-largest
concert
promoter is now named AEG Presents.
of a company-wide rebranding strategy to
management company The Bowery Presents
create a new identity for AEG`s concerts and
earlier this year. The firm is yet to make an
festival division. The new name also comes
official announcement on the rebrand.
The entertainment giant behind events
with a new logo that will be rolled out
like Coachella and Stagecoach in Southern
across AEG Lives 16 regional offices.
AEG is the world`s second biggest concert
California, Panorama Festival in New York
promoter, behind Live Nation, with 16
City and 8,000 concerts a year around the
The
name
switch
comes
after
AEG
regional offices, working with artists such
world has quietly changed its name as part
acquired a stake in US promoter and venue
as Taylor Swift, Paul McCartney, The Rolling
15
VIP NEWS > BUSINESS >
MUSIC IN SHARES
MARCH 2017
Stones, Justin Bieber, Katy Perry and Kenny Chesney. It also produces or supports over Valley Music & Arts Festival.
Shares
The company`s AEG Facilities division owns
CTS Eventim - Dividend Payments Announced
25 music festivals including the Coachella
and operates over 100 venues worldwide including the Staples Center in Los Angeles,
The Company almost doubled dividend payments from 44.2 to 94.1 million
Barclays Center in Brooklyn, The SSE Arena,
Euros. The dividend per share will raise to 0.98 Euro compared with 0.46 Euro
Wembley, and the world`s busiest venue,
last year. The company has paid its shareholders a dividend sfor 12 years in a row.
The O2 in London.
Last time reported share price was on February 23 at 34.55 Euro, this time on March 23 its 34.35 Euro.
AEG stages more than 8,000 shows annually, conducting business under brands such as AEG Live, Goldenvoice, Concerts
DEAG
West, Messina Touring Group, Marshall Arts
From 3.16 up to 3.18 Euro
LTD and Madison House Presents. It also promotes the annual British Summer Time Hyde Park series, which this year features
Live Nation
acts including Green Day, The Killers, Phil
From $29.76 down to $29.30.
Collins, Justin Bieber, Kings Of Leon and Tom Petty & The Heartbreakers.
THE HALL DUO IN NECKARPARK
UNIQUE AND DOUBLY GOOD
STUTTGART CATCHMENT AREA: MORE THAN 3 MILLION PEOPLE • HANNS-MARTIN-SCHLEYER-HALLE: UP TO 15,500 SPECTATORS • PORSCHE-ARENA: UP TO 7,500 SPECTATORS • 2017: … CESAR MILAN, LINDSEY STIRLING, SARAH CONNOR, STING, TINI - VIOLETTA, JOE BONAMASSA, DJ BOBO, PHILIPP POISEL, UDO LINDENBERG, DEEP PURPLE, WESTERNHAGEN, CIRQUE DU SOLEIL, MANOWAR, XAVIER NAIDOO …
Tel. +49 (0) 711/9554-40 Fax +49 (0) 711/9554-500
16
AZ_in_stutt_VIPmag_2017_RZ.indd 1
info@in.stuttgart.de www.in.stuttgart.de
23.11.16 09:58
! W O N R E T REGIS ESNS: EU
ESNS: EU creative europe
VIP NEWS > MISC >
MARCH 2017
MEMBER PRESENTATION
ARTIST AVAILS FUN LOVIN CRIMINALS Territory: Europe Period: 2017 Agency: Primary Talent International Agent: Dave Chumbley Phone: +44 20 7400 4500 E-mail: dave@primarytalent.com Homepage: www.facebook.com/funlovincriminals
EAST 17 Territory: Europe Period: April - December 2017 Agency: AMA Music Agency Ltd. Agent: Mark Downing Phone: +35 386 250 4795 E-mail: mark@amamusicagency.ie Homepage: www.amamusicagency.ie/east-17/
Amsterdam Arena The Amsterdam ArenA is the football stadium of the Netherlands, home base of AFC Ajax and the Dutch national team. Besides that it provides multi-functional accommodation for both large national and international music and dance events and smaller gatherings predominantly in the corporate business segment. These
PATRICIA KAAS Territory: Worldwide Period: On demand Agency: Richard Walter Productions Agent: Jean-Hugues Feugeas Phone: +33 432 600 599 E-mail: jh@rwprod.net Homepage: www.rwprod.org/en/artistes/patricia-kaas.html
activities take place in close cooperation with several partners. Quality service, stateof-the-art facilities, safety and optimal public perception are the main strategic pillars. The Amsterdam ArenA is one of the most sustainable stadiums in the world and is regarded internationally as a role model for modern stadium construction and exploitation. The Innovation Center acts as a living lab for innovative concepts for stadium management and event experiences.
DIZZEE RASCAL Territory: Europe Period: 2017 Agency: Primary Talent International Agent: Peter Elliot Phone: +44 20 7400 4500 E-mail: peter_elliott@primarytalent.com Homepage: www.dizzeerascal.co.uk
PHIL RUDD BAND (EX AC/DC) Territory: Europe Period: April to June 2017 inclusive Agency: Fizzion and Frusion Agent: Ian Smith Phone: +44 77 9169 9889 E-mail: ian@frusion.co.uk Homepage: www.fizzion.eu/artist.php?id=139
About Our Company
BLONDE REDHEAD Territory: Europe Period: June - August 2017 Agency: Ponderosa Music and Art Agent: Giuseppe Ponti E-mail: giuseppe@ponderosa.it
VIP-Booking’s core product is the Internet’s oldest and largest databasefor the European Live Entertainment Industry www.vip-booking.comdeveloped as a tool for industry professionals. Since it’s launch in the year 2000, we have consistently offered our subscribers the very best in database services and now boast subscribersin over 30 countries.
MORE ARTIST AVAILS ON: WWW.VIP-BOOKING.COM
Today VIP-Booking offers a range of tools for the industry – including VIP-News, VIP-Booking, VIP-Book and VIP-Contract.
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