Following weeks of rumours and industry gossip, Live Nation Australia has been confirmed as the new operator of Melbourne’s iconic Palais Theatre.
“Live Nation’s proposal met or exceeded all our objectives and we are excited at what can now be delivered for our community and live music fans across Australia,” said Port Phillip Council in a statement.
“We welcome Live Nation aboard and look forward to this much loved St Kilda venue delighting audiences for years to come.”
The international touring and promotions giant, who’ve secured a 30-year lease, will be taking over from longtime operator Neil Croker, who joined the Palais nine years ago.
Croker took the iconic St Kilda venue from around 25 shows a year to 110 last year and increased ticket sales from 30,000 a year to about 250,000.
However, Croker was dumped earlier this year after other bidders reportedly offered Port Phillip Council more money for the lease.
The decision eventually came down to two contendors, conglomerate Live Nation and the Sydney-based Playbill, who manage the Hordern Pavilion.
“Live Nation Australia is thrilled to have been successful in securing the rights to operate the Palais Theatre,” said Live Nation Australia & NZ CEO Michael Coppel.
“Both as a major presenter of live events and as a Melbourne-based and staffed music business firm, we are very aware of how important the venue is to the St Kilda community and to the people of Melbourne in general, and what a very special performance space it is.”
“To have been granted stewardship of this iconic venue carries a great responsibility, and we will seek to restore the Palais to its former glories, to better adapt it to the changing requirements of live performances, and to operate it for the benefit of all stakeholders, hirers, staff and patrons.
The Council reportedly stated that Live Nation had put forth the best approach to “enhancing community benefits, including community engagement, governance and fundraising” for the venue.
The company has also committed to the establishment of the Palais Theatre Community Fund (PTCF), which will be funded by a $0.50 contribution from every ticket sold.
The company estimates the initiative could generate more than $4 million in today’s dollars over the life of the lease, which will go to “a range of community initiatives”.
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Live Nation also acknowledged what many have called a potential conflict of interest inherent in having a concert promoter running a large live music venue whilst competing with other promoters.
In a statement, the company insisted “extensive consideration” has been given to the development of a Fair Competition and Confidentiality Policy for the hire of the Palais Theatre.
However, it’s unlikely it will do much to ease the anxieties of industry figures who’ve spoken out about the Live Nation takeover of the Palais, like veteran promoter Michael Chugg.
“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,” Chugg told Fairfax.
