Nashville Municipal Auditorium
Live Nation has sealed the deal as the preferred concert and comedy show provider for the 54-year-old Nashville Municipal Auditorium under a three-year agreement.
Bob Skoney, arena GM, said the promoter has already booked four of a likely six concerts in year one. The deal requires that Live Nation pay the city $1 million over three years. The annual $333,000 will go a long way to offset the venue’s annual operating deficit, which has historically been $350,000-$450,000 a year. Should Live Nation net more than $2 million, the city would split any amount above that 50/50, according to a newspaper report on the agreement.
For Live Nation, the deal fills a capacity need for concerts in Nashville – that 3,500-5,000-seat sweet spot. When it’s not outdoor season, there is really no place to put those shows in Nashville, said Brian Traeger, Live Nation talent buyer. “The economics of the building support 3,700 people and artists would walk out with what they need.”
“There’s no reason that building couldn’t be the Hollywood Palladium of Nashville,” Traeger said of its potential, particularly given its legendary history. A slew of acts, including Elvis Presley and Michael Jackson played their last show in Nashville at Municipal Auditorium through the 1990’s.
Live Nation envisions booking six shows there this fiscal year; 10-12 in 2017, and 20 shows a year by 2018. “It hasn’t been a preferred venue for a few years,” Traeger added. There are plans afoot to improve the venue and Live Nation has had input into the process.
Skoney said Metro Council has approved $1.5 million on building improvements, which will start with improving the backstage dressing rooms, lobby areas, internet connectivity and public restrooms. Another $500,000 is dedicated to completing seat improvements.
"Live Nation will work with us to improve concessions,” Skoney added. D&D Events is in its third year of a five-year concessions contract at the auditorium. Universal provides security. It’s a Ticketmaster venue.
Traeger said the goal is to turn it into a more “friendly, modern experience that people are used to when they go to new arenas.” Some external landscaping is also on the renovation list. On the wish list is a super grid and rigging, but given the number of rehearsals booked at Nashville Municipal Aud, people have figured out how to do it. That renovation will be further down the road.
Under the agreement, Live Nation will have first right of refusal on concerts and comedy. They will pay all the expenses and reap all of the income streams, including ticket money, Ticketmaster fees, revenue from concessions and novelties, and any sponsorship money they sell at their events.
“We maintain the building and keep the calendar,” Skoney said. He will continue booking nonconcert/comedy events as per usual. Skoney anticipates an increase in that demand following all the improvements and because activity generates more activity.
Historically, he has booked 110 event days annually, which translates to 40-45 events a year. Live Nation currently has Pretty Lights and Chainsmokers, both EDM events, and 1975 (rock and roll) on sale there. AEG Live is bringing Anthony Hamilton to the auditorium in October, a deal that was signed before the exclusive. A few others, including Mike Epps and Kat Williams through North American Entertainment, were also already planned, Skoney said.
Live Nation also has booking agreements with two other Nashville venues – Ascend Amphitheater (6,800 seats) and Woods Amphitheater at Fontanel (4,500 seats).
The exclusive at Nashville Municipal Aud. will expand, not repurpose, the number of shows Live Nation promotes in the city, which will continue to average 16 a year at Bridgestone Arena, with plans to grow that number, Traeger said.
Nashville Municipal Aud’s board solicited exclusive promoter bids last year. Negotiations with Live Nation were finalized Aug. 2.
Interviewed for this story: Bob Skoney, (615) 862-6393; Brian Traeger, (615) 346-9036