Australian music industry icon Michael Chugg is one of several local industry stakeholders to come out against the possibility of US touring giant Live Nation taking over management of St Kilda’s beloved Palais theatre.
Speaking to Fairfax, Chugg slammed the fact that the decision of who will undertake The Palais’ 25-year lease — Live Nation or the Sydney-based Playbill, who manage the Hordern Pavilion — was happening behind closed doors.
“They bought over a whole chain of amphitheatres in America and they have run them into the ground,” Chugg said of Live Nation, whom the promoter claims have established “a monopoly and they are wiping out other operators”.
“When you book a venue for a concert they want to know who the act is. So you will be in a situation where you are telling a rival who the act is before that act is booked. And that rival will be running the venue,” he added.
“It’s beyond me what [Port Phillip Council] have done – why they have [got rid of] the bloke who took it on when it was a broken down shithole and built it back up into a prestigious venue,” referring to current operator Neil Croker.
Croker took over the Palais’ operations nine years ago, taking the ancient venue from around 25 shows a year to 110 last year and increasing ticket sales from 30,000 a year to about 250,000.
Croker was dumped earlier this year after other bidders reportedly offered Port Phillip Council more money for the lease. However, local industry figures insist going with Live Nation would undo all of Croker’s hard work.
Of course, it’s easy to see why Live Nation are such an attractive option for the council, considering their continued global success and brand recognition. The company recently posted first quarter results showing a turnover of US$1.2 billion.
[include_post id=”424712″]
Many local residents and industry stakeholders want to know why the final decision, which is set to be made during a council meeting tonight, is not open to the public, taking their feelings and opinions into account.
“The report will be confidential as leasing is a commercial process. This is accepted industry practice,” Port Phillip mayor Bernadene Voss told Fairfax when asked why the meeting was occurring behind closed doors.
Cr Voss said the council’s recommendation on who should get the lease will remain confidential until the environment minister, who has the final sign-off, has finalised the proceedings.
