Live Nation Inc., the world’s largest concert promoter in the world, will be losing one of their powerhouse members, say sources close to the Cohl-Rapino conflict. Chairman Michael Cohl could be leaving the company as soon as next week over business practice disagreements with CEO Michael Rapino.
Live Nation Inc., the world’s largest concert promoter in the world, will be losing one of their powerhouse members, say sources close to the Cohl-Rapino conflict. Chairman Michael Cohl could be leaving the company as soon as next week over business practice disagreements with CEO Michael Rapino.
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The battle over the new “360 deals” the company has been using to lure in artists rose to a new height last week when Cohl threatened to leave the company, after Rapino wanted to ixnay the hasty deal-making process. The “360 deals” involve paying an artist hefty amounts of money upfront in exchange for financial involvement in the artist’s music distribution, concert production, merchandise, etc. Cohl thinks the idea revolutionary and profitable at the end of the day, but judging from the very public feud that has resulted, Rapino disagreed. After such exorbitant deals made with Madonna ($120 million) and Jay-Z ($150 million), Rapino wanted to slow down the whirlwind deal-making, whereas Cohl wanted to speed it up.
Last week’s public display of disaffection was said to be resolved, but it seems the only talks that have resumed are discussions on how and when Cohl will leave the company. The Wall Street Journal reports that Cohl has tried to leave Live Nation before. When disagreements over how to conduct business first arose, the music promotion veteran tried to buy back his company, Concert Productions International, which Cohl sold to Live Nation in 2007. When a price could not be agreed upon, the parties rested until the eruption last week indicated that something must be done to appease the conflicting parties. There is no news yet on a financial settlement for Cohl or whether he will be held to the clause in his contract with Live Nation stating he may not compete in business with the company for eight years.
