Though it’s getting down to the wire, it’s still undecided which management firm will operate the Greek Theatre in Los Angeles in 2016. The two main players are incumbent operator Nederlander, which has partnered with AEG to bid on the new contract, and Live Nation. After the Department of Parks and Recreation unanimously recommended the bid from Live Nation, many thought the decision had practically been made.
The fight was far from over.
On Jan. 26, a City Council committee voted 4-1 to reject the Dept. of Parks and Recreation’s recommendation. The full city council of 15 members voted Feb. 11, reaching an 11-3 vote to send the decision back down to the parks commission. Though it doesn’t mean the Nederlander/ AEG bid will be approved, it leaves the door open. However, the Department of Parks and Recreation could still award the contract to Live Nation.
Both companies weighed in with statements after the Jan. 26 meeting:
Nederlander Concerts CEO Alex Hodges said:
“Today was a great day for Nederlander/AEG Live. We are pleased that the City Council voted to reject Live Nation and send the matter back to the Department of Recreation and Parks. We are not alone, over 30,000 fans have signed a petition in support of the Nederlander/AEG Live proposal and 12 Neighborhood Councils representing more than 240,000 Angelenos have also called on the City for a more robust and transparent evaluation. We are grateful for all the community support and know our proposal is the most fiscally responsible for the City and reflects the best of LA. We look forward to working with the Department and the Commission and are confident that our proposal is the right choice for the City and will bring this iconic landmark into the future, while respecting its past.”
From the Live Nation Entertainment camp:
“Unfortunately, today's action by the City Council puts aside the clear and unanimous findings of the lengthy, comprehensive and competitive bidding process established by the City for the Greek Theatre concession contract.
"Based on the strength of our vision for the Greek, Live Nation was the unanimous choice of the expert evaluation panel, Recreation and Parks staff and the Board of Recreation and Parks Commissioners. It was a clear victory: Live Nation scored 91 percent of all possible points; Nederlander/AEG received 79 percent. Live Nation's financial bid is superior, generating important long-term revenues to fund Recreation and Parks Department initiatives citywide. Live Nation's bid also invests far more in the Greek Theatre, an aging venue that has suffered from chronic underinvestment, maintenance challenges and unfulfilled promises under Nederlander's management.
"The RFP established clear and objective criteria for evaluating the proposals for the Greek Theatre. Without explanation, the City Council decided to apply different criteria for their decision-making.
"Fortunately, only the Board of Recreation and Parks Commissioners can award the contract, and they have unanimously voted in favor of Live Nation. Now that this City Council has given its opinion, the process calls for Recreation and Parks staff to negotiate a contract with Live Nation … Live Nation agrees, and will continue to protect our position as the winning bidder for the Greek Theatre concession.”
The parks commission now has a decision to make. They can veer from their original decision and award the contract to Nederlander/AEG, move forward on an agreement with Live Nation, or start the bid process over altogether.
Whatever they decide, they’ll need to move quickly. Nederlander’s contract is up at the end of October.
Contact: Nederlander Concerts, Vanessa Kromer, (323) 817-6108; Live Nation, Melissa Zukerman, (323) 658-1555