Celine's concert producer AEG on sale

[joaofilho]

Billionaire Philip Anschutz's plan to sell off his AEG entertainment division raises a major question about the fate of the company's AEG Live subsidiary, the concert industry's No. 2 powerhouse.

 

The multifaceted AEG owns, operates and exclusively books dozens of venues across the country, controls stakes in the Los Angeles Lakers and Kings sports franchises and promotes hundreds of concerts and other live entertainment events each year. Industry veterans are speculating whether AEG will remain as a single entity under new ownership or be split into several pieces and be sold off.

 

Among AEG Live's most prized concert world components are Staples Center in Los Angeles, the O2 Arena in London and the Coachella Valley Music and Arts Festival in Indio, of which it shares ownership with festival founder Paul Tollett.

 

Since AEG Live was launched about a dozen years ago, it has become the closest competitor to the concert business' leader, Live Nation. Last year, AEG Live sold 12.2 million tickets to events it produced and promoted worldwide, compared with 22 million tickets for Live Nation-sponsored shows, according to Pollstar, the live entertainment industry tracking publication.

 

Two Wall Street analysts, who declined to speak publicly, said it is difficult to put a price tag on privately held AEG Live.

 

But others said the value of the company's concert division has less to do with ticket sales or gross revenues than with the people who run it.

 

"You're buying their expertise and their relationships with all of the artists," Pollstar editor Gary Bongiovanni said. "If you bought Coachella and you don't have Paul Tollett, what do you really have? You bought the name but not the people who bring in the talent."

 

He also cited Brian Murphy, the head of AEG Live's West Coast office, who has close ties with Katy Perry. John Meglen and Paul Gongaware of AEG's Concerts West division worked with Celine Dion. Louis Messina, one of the nation's biggest country music promoters who formed a partnership with AEG Live, has handled tours for Taylor Swift and Kenny Chesney.

 

Chesney's summer stadium tour with fellow country star Tim McGraw sold more than 1 million tickets and grossed more than $96 million over 23 shows, making it the most popular and highest-grossing concert tour of the year, according to Pollstar figures.

 

"These people have very strong relationships with talent," Bongiovanni said. "The value of the company will depend on whether these people will stay."

 

AEG Live had about 650 employees and generated about $1 billion a year in ticket sales as of 2011, according to AEG Live president Randy Phillips, who on Wednesday declined to comment for this report. AEG President and Chief Executive Tim Leiweke also declined through a spokesman to comment beyond their statements in Tuesday's news release announcing the sale.

 

"We run this like a business," Phillips told The Times last year. "Even though AEG Live is a strategic play to protect AEG's venues, we need to make money as a stand-alone business."

 

AEG Live did turn a profit in 2010 and 2011, Phillips said, with last year being its most profitable year ever. He declined to state how much money the division made.

 

Even if AEG had disclosed its performance, its businesses are too tightly intertwined to easily separate the pieces, said John Tinker, an analyst at Maxim Group.

 

AEG Live can get a good rate for the venues it owns (take Staples, for example). Otherwise, concert promotions is a low-profit business, with margins averaging 1% to 4% of revenue, Tinker said.

 

"If you don't control the building, you're just another guy without an angle," Tinker said.

 

To AEG, however, the concerts business helps the company fill its stadiums and concert halls in between the sports matches of teams AEG owns or has a stake in.

 

"It's the whole package that's interesting. The concerts business by itself is not," Tinker said.

 

The prospective sale also raises questions about the future of AEG's individual components.

 

"I don't think it will have any impact on day-to-day business, unless a new owner comes in and starts selling pieces off," said a veteran concert promoter who has dealt with AEG and Live Nation who asked for anonymity. "Its business is fractured: it has sports arenas across the country [and] a lot of little businesses that somewhat complement each other, but I don't know if they're enmeshed.

 

 

http://www.latimes.com/business/la-fi-0920...0,2469626.story

 

 

 

Does Celine will continue with their shows in Vegas??

[Ronny83]

...and this is how the sale could affect Las Vegas and Celine: http://www.lvrj.com/news/sale-of-aeg-may-a...-170467166.html

[joaofilho]

Remember that they have announced that the show would continue and it already has a time already are saying that Live Nation is interested in buying a share of AEG Live that produces shows, so it is not known if the judicial branches will allow, so I know that with this sale it going to change some things about the shows of celine.

[Davey84]

Would it be bad, if they don't extent the Vegas contract? Me think not

[Matej]

Dave, if they do not extend the contract in Las Vegas, it would be very bad for one person for sure...

[Davey84]

Yeah but René just has to deal with it

 

 

She should concentrate on her French career/ Canadian & European fans for a change

[browseceline]

Yeah but René just has to deal with it

She should concentrate on her French career/ Canadian & European fans for a change

 

AMEN - is the Vegas show really needed? no.. was it needed to extend it for so many years?

I can't wait the whole Vegas thing stops..

[Shaun]

I honestly thought when they signed up to only 70 shows a year in Vegas it would mean we would see more "one off" concerts elsewhere around the world. Aside from one in Jamaica that sadly hasn't happened.

 

If they are to commit to Vegas to even longer I do hope they will start to consider more concerts elsewhere in between her shows in Vegas.

[Timster]

I honestly thought when they signed up to only 70 shows a year in Vegas it would mean we would see more "one off" concerts elsewhere around the world. Aside from one in Jamaica that sadly hasn't happened.

 

If they are to commit to Vegas to even longer I do hope they will start to consider more concerts elsewhere in between her shows in Vegas.

 

I agree, I'll be really angry if those European shows in 2013 that Rene talked about ages ago never happen...

[Javito]

Would it be bad, if they don't extent the Vegas contract? Me think not

 

To me, that would be absolutely GREAT news There's nothing more I could like that Céline turn that page and move on to another stage of her career. 2003-2007 was way enough time in Vegas.

Edited September 20, 2012 at 12:19 PM by Javito

[duri]

Yeah but René just has to deal with it

She should concentrate on her French career/ Canadian & European fans for a change

Yes it would be great if she ended her Vegas part of her career and concentrate on something diffrent but I´m not very optimistic i think René will do everything to continue Céline´s show in Vegas, but who knows ... if there will be new concert promoter it means new contract so everything is possible.

[Fanxiaoqiang]

i'm confuesd about this news,what is the main topic they talk?could please anyone told me about this news?

thankyou!

[Matej]

Basically I agree it will have not any impact when a new owners comes in. Maybe the company name and some things will be changed based on shareholdings but the business activities will be remain unchanged in general terms. So I think Celine's residency show will go on and on (and on and on again), but I would be happy if not.

[CSCfan]

I think some of you forget that not only does AEG handles her Vegas show, but they also handle her world tours.... so if (BIG if) something "happens" to her Vegas show/Colosseum residency, it most likely also has an effect on a future tour.

[celinemaniacaik]

Yeah but René just has to deal with it

She should concentrate on her French career/ Canadian & European fans for a change

 

[nuts2you]

I think some of you forget that not only does AEG handles her Vegas show, but they also handle her world tours.... so if (BIG if) something "happens" to her Vegas show/Colosseum residency, it most likely also has an effect on a future tour.

 

 

That would really SUCK,

[pat200]

please let AEG be sold pleaaaaase. that way her vegas concerts would be over and then after a year let her sign with live nation and only do world tours. Maybe then she will have the time to work on albums.

[matt987]

the only reason celine does the vegas shows is that she can be a full time mum if the vegas show stop i think she will pack in i carnt see her doing world tofor a long time not when she has 3 children now ido miss the old days when celine was out there more but celine first concern is being a mother while she is doing vegas she is still out there

[Nando Férri]

Honestly? I don't care at all for Vegas. I've never liked the fact she was there. For me, she can cancel it, live her life always in vacation and time to time release an album, a tour.

[idroveallnight]

Agree...the hassle of flying cross country (and for some, across the globe) to see her perform for 90 minutes is seriously not worth it to me anymore. It was fresh and exciting the first couple of times but in this economy, it's no longer within many of our means. Sure it's heaven, but it comes with a very large price tag. The tagline "this is my home and I want to welcome my fans to my home since they've welcomed me into their hearts" is so 2003. Many of us have been there and now some of us have literally over-welcomed our stay (you know who you are lol). I agree with Shaun that the cutback on shows in Vegas should have been coupled with shows outside of Vegas as well. It wouldn't kill her to fly to NYC or Paris just for a night. They could even capitalize on that: "Celine Dion: 1 Night Only!" Hopefully this album release will open their minds. As for this AEG story, I don't really see how it affects Celine. Caesars will surely step in if no one else buys...Celine is their crowning jewel.

[Mariann]

Even if the Vegas shows should be cancelled I still can't see Celine doing long tours around the world. Like it has already been said: she is a mother now and she can't just drag her little children away from their home. I would be happy if Celine gave a few concerts in some places arounf the world from time to time but otherwise I accept her decision to concentrate on her family for the moment. I believe that was the main reason for her to stay in Vegas for such a long time.

[wjd]

Celine is one of the most reliable draws in the world, in terms of touring - from 1996 onwards, she's been I'd say, in the very top echelon of touring artists [in that time, I don't think there's any female act - even Madonna - that has sold the 9/10m+ concert tickets that she has]

[sfbaysinger]

I find it very that it was wished for this establishment to be sold. How could anyone wish suffering/ill on so many people, not just Celine but families/employess of them, etc. That's so hurtful...

I don't care where or when she sings, I just care That she does it. I hope she will remain firmly grounded/rooted and unaffected and HER show, in any way it can/must/need to, will indeed go on.

If some here think that others have been hanging out in Vegas too long/much, so what! Let them enjoy it for now. This could be the time of their lives, let's not ruin it for them. We have no idea of knowing what is or is not in someone's means. Nothing lasts forever and that includes this time in our/Celine's lives. Unfortunately, a time will come when those who can go may not be able to any more, or she will move on. If someone cannot afford it, I'm very sorry, truly. I wish everyone who wanted to could. But that doesn't mean those who can/do/take full and rightful advantage of it should not get to enjoy it. Someone who gets to go see her often, while the selfish part of me is of course a bit jealous, I wish them all the best and say go for it, have fun, tell her we love her. You know...

And I think we, myself included after that little rant/rave, should get back on topic. This isn't about whether we want her to leave/never have come to Vegas, or do promo around the world, (the second one would be nice though!) This is about how we think/fear she could be affected by this change. If it happens, I want to be one to get behind/support/rally around her to make it back on top and on her feet again. If nothing happens, I for one will rejoice.

Let's all try to get/stay on topic instead of turning this, and pretty much ALL other threads/topics here in "Discussions" in to a blood-bath at others'/Celine's expense.

Edit: if you want to label me as part of "the positivity brigade" go ahead. I'm not fond of labels as I think we should be one big/warm/loving family of Celine fans. But, I'm also not 5 or in high school anymore so I know that's not realistic. I am proud to take my stand as one of my kind, I wear it as a badge of honor. But I also hate the cliques. I just want us all to carry/live her message, because love still exists and it is always enough to love.

Edited September 21, 2012 at 07:58 PM by sfbaysinger

[idroveallnight]

I don't think anyone is criticizing her per se, people just really love her and want her to come to their countries. It's much easier for her to travel than it is for any of us--seriously, she has her own jet she can hop on and ask the pilot to go anywhere. I think the majority of fans would not mind if she did Vegas and did a show from time to time outside of Vegas as well.