Live Nation Initiates Cutbacks

• The live-entertainment business — the primary revenue generator of the music industry — has been hit especially hard by the COVID-19 pandemic, with virtually every tour and concert scheduled over the next few months either postponed or cancelled. In the wake of these steep financial challenges, Variety reports that Michael Rapino (left), CEO of Live Nation, the world’s largest live-entertainment company, will forego the remainder of his reported $3 million 2020 salary and senior executives will see their salaries reduced by up to 50%, amid other cost-cutting moves and an amendment to its existing credit agreement that includes a new $120 million revolving loan facility.

In a statement accompanying a new SEC filing, Live Nation said, “Given the uncertainty associated with the duration of current conditions globally, the company has launched a number of initiatives to reduce fixed costs and conserve cash. As part of these cost reduction efforts, the company will implement salary reductions, with salaries for senior executives reduced by up to 50%, and the company’s CEO voluntarily forgoing 100% of his salary for the duration of the salary reduction program. Additional cost reduction efforts include hiring freezes, reduction in the use of contractors, rent re-negotiations, furloughs, and reduction or elimination of other discretionary spending, including, among other things, travel and entertainment, repairs and maintenance, and marketing.”

Variety reports “Rapino has made aggressive moves in recent weeks to bolster confidence and give support to the industry, ranging from purchasing $1 million in the company’s stock himself to creating a fund for laid-off concert workers called ‘Crew Aid.'” However, the article cautions, “Even if quarantines are lifted by late spring, it’s hard to say when people will feel secure enough to return to mass gatherings.”