(Bloomberg) — Two Live Nation Entertainment Inc. ticketing directors bragged about the high fees the company charges fans at its venues, joking in internal messages that the company is “robbing them blind” and that “these people are so stupid” that “I almost feel bad taking advantage of them.”
In a series of chats from 2022, Ben Baker and Jeff Weinhold, two regional directors of ticketing for Live Nation amphitheaters, boasted about their ability to raise so-called “ancillary fees” – like parking, lawn chair rentals and VIP access – and still get concertgoers to pay for them. In one exchange, Weinhold gloated about raising VIP parking costs at a Virginia concert venue to $250.
“These people are so stupid. I almost feel bad taking advantage of them,” Baker wrote, adding later, “I gouge them on ancil prices.”
In another exchange, he bragged about charging “$50 to park in the grass” and “$60 for closer grass.”
“Robbing them blind, baby,” he said, “that’s how we do it.”
The company said in a statement that the messages did not reflect its values.
Baker is now the head of ticketing for the Live Nation unit responsible for its 150 amphitheaters and was expected to testify this week at a federal antitrust trial over claims that the company illegally monopolized the live events industry.
His testimony was postponed after the US Justice Department reached a settlement Monday with Live Nation. A group of state attorneys general are expected to continue litigating the case against the company as soon as next week.
Earlier: Live Nation Gets to Keep Ticketmaster in Surprise DOJ Settlement
In a court filing last week, Live Nation asked the judge to exclude six sets of Slack messages between the two men, arguing that they would unfairly prejudice the jury. The company redacted the descriptions of the chats in its brief. The Justice Department and state attorneys general opposed the request to exclude the chats, arguing they were evidence of how Live Nation uses its monopoly to degrade the fan experience.
A group of media organizations including Bloomberg petitioned the court to unseal the documents. US District Judge Arun Subramanian ruled Wednesday the documents should be unsealed and ordered states suing Live Nation to make them publicly available.
“The Slack exchange from one junior staffer to a friend absolutely doesn’t reflect our values or how we operate,” Live Nation said in the statement. “Because this was a private Slack message, leadership learned of this when the public did, and will be looking into the matter promptly.”
Live Nation said that its settlement with the Justice Department would cap fees at its amphitheaters at 15% and that it has invested $1 billion over the last 18 months in its venues.
Baker and Weinhold didn’t immediately respond to requests for comment sent via social media.
In its filing, the company said that Baker and Weinhold are friends and the messages reflected “off-the-cuff banter, not policy, decision-making, or facts of consequence.” Live Nation urged the court to exclude them from being introduced at the trial, arguing that their only purpose was to portray the company in an “unflattering light and inflame the jury.”
In their unredacted response released Wednesday, the states argued that ancillary fees like those discussed in the chats are a method Live Nation uses to make more money off its monopoly. The company “is able to degrade the fan experience by charging excessive prices for ancillary services without fear of artists switching away,” they said, calling it proof of Live Nation’s monopoly power in amphitheaters.
–With assistance from Josh Sisco.
(Updates with background on settlement and Live Nation investments in 12th paragraph.)
