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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

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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

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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.”

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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

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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.

POST YOUR ARTIST AVAILS ON: WWW.VIP-BOOKING.COM

Please visit vip-booking.com for further information­.

Your comments and suggestions are always appreciated­.

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