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Tuesday, 6 July 2010 - Restrictive Lollapalooza contract draws state scrutiny |
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    Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared UPDATE 1-FT says BP stops supplying fuel to Iranian aircraft 05 Jul 2010 BP eyes stake sale as oil reported in Lake Pontchartrain | Video 05 Jul 2010 Bulls on the run in shortened week 05 Jul 2010 France to look at possible U.S. sub link to sinking 02 Jul 2010 Tests on Gulf oil "superskimmer" inconclusive: ship owner | Video 05 Jul 2010 U.S. authorities seize websites over pirated movies 30 Jun 2010 Special Report: Should BP nuke its leaking well? 02 Jul 2010 UK Stocks -- Factors to watch on July 6 1:56am EDT BP reported to halt fuelling of Iranian planes 05 Jul 2010 Analysis: China makes haste slowly globalizing the yuan 05 Jul 2010 Turkey wants Israel apology 05 Jul 2010 Alternative rapper Dres resurrects Black Sheep 02 Jul 2010 BP eyes stake sale as oil reported in Lake Pontchartrain | Video 05 Jul 2010 India opposition strike over fuel price hike disrupts 04 Jul 2010 UPDATE 1-FT says BP stops supplying fuel to Iranian aircraft 05 Jul 2010 "Twilight" sequel eclipsed by earlier installment 05 Jul 2010 UK coalition launches shake-up of political system 05 Jul 2010 Bank of China: New funding to suffice for 3 years 05 Jul 2010 Sanctions are biting in Iran - exiled group 05 Jul 2010 Kamada gets US FDA approval for AATD drug Glassia 02 Jul 2010 Restrictive Lollapalooza contract draws state scrutiny Digg This Tweet This Share on LinkedIn Share on Facebook Related News Mexican musicians wary after latest murder Fri, Jul 2 2010 Related Topics Fashion » Entertainment » Music » By Ray Waddell Mon Jul 5, 2010 10:28pm EDT NASHVILLE (Billboard) - Radius clauses, which prevent musicians from playing at competing venues within a specified area and timeframe, have probably been around as long as performance contracts. But the situation in Chicago with Lollapalooza and promoter C3 Presents is drawing new attention to this standard concert business procedure. Chicago-based blogger Jim DeRogatis was the first to report that Illinois Attorney General Lisa Madigan is investigating C3 because of antitrust concerns relating to radius clauses for artists performing at the annual festival. Sources confirmed that partners at Austin-based C3, who declined to comment for Billboard, had been subpoenaed in the investigation and were gathering information to present to the AG's office. Also subpoenaed was Marc Geiger, VP at William Morris Endeavor Entertainment, a partner with C3 in Lollapalooza. Radius clauses for artists based on time and distance are common in performance contracts, not only for headlining one-off concerts, but also with fairs and festivals that invest millions of dollars in talent and production costs and seek to protect the market value of an act or collection of acts in a given market. Radius clauses for Bonnaroo in Manchester, Tenn., range from 60 to 90 days before and after the event and extend for 250-300 miles. The radius clause for April's Coachella fest was more specific, stipulating that artists "shall not advertise, perform, or publicize any performance: a) In Los Angeles, Orange, Riverside, San Bernardino, Santa Barbara, Ventura, or San Diego counties from December 1, 2009 until 30 days after the Festival; b) At any festival in the States of California, Nevada, or Arizona until 30 days after the Festival; c) Or announce any other U.S. festival prior to February 15, 2010." Triangle Talent CEO Dave Snowden, who books many of the biggest state fairs in the country, says radius clauses on his events vary. "The widest is the Iowa State Fair, which takes in a 200-mile radius, excluding Davenport," Snowden says. "Most are 100-150 miles." At six months before the festival and three months after, and extending for 300 miles outside of Chicago, the C3 radius clause for Lollapalooza is indeed a stiff one. Local promoters and venues in Chicago and other cities with major festivals have long complained that restrictive radius clauses cut into the number of acts that other talent buyers can book in the market. Chicago-based promoter Jam Productions didn't respond to a request for comment on the issue. But a source with knowledge of the Chicago/Lollapalooza situation says that as many as half the bands booked by C3 for Lollapalooza break the radius clause by playing Chicago within the confines of the radius without repercussions from C3, and as many as 90 percent play inside the 300 miles within the specified time frame. One insider says that C3 had, in fact, never enforced the radius clause. At least one agent confirms that Lollapalooza radius clauses aren't carved in stone. "The Lollapalooza clause is strict on paper, but not more so than those of other festivals of its size," says Tom Windish, president of Chicago-based Windish Agency, which has booked many acts at the fest. "I have found the Lollapalooza organizers to be flexible in addressing specific instances of modifying their exclusivity." The radius clauses are primarily designed to keep the bigger, expensive acts "clean" in a given market, and such flexibility isn't uncommon, particularly with the smaller acts. In fact, only a handful of acts on any major festival play large venues, so cutting slack on the exclusivity isn't a make-or-break decision. "I am pretty easy on OK'ing an event if it does not hurt my client," says Snowden, who represents fairs and festivals. "Most of the fairs and other events leave it up to us to OK some of these dates that fall a bit into the radius." (please visit our entertainment blog via www.reuters.com or on blogs.reuters.com/fanfare/) Fashion Entertainment Music     Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters.   © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback   Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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