NASHVILLE (Billboard) - Radius clauses, which prevent musicians from playing at competing venues within a specified area and timeframe, have probably been around as long as performance contracts. But the situation in Chicago with Lollapalooza and promoter C3 Presents is drawing new attention to this standard concert business procedure.
Chicago-based blogger Jim DeRogatis was the first to report that Illinois Attorney General Lisa Madigan is investigating C3 because of antitrust concerns relating to radius clauses for artists performing at the annual festival.
Sources confirmed that partners at Austin-based C3, who declined to comment for Billboard, had been subpoenaed in the investigation and were gathering information to present to the AG's office. Also subpoenaed was Marc Geiger, VP at William Morris Endeavor Entertainment, a partner with C3 in Lollapalooza.
Radius clauses for artists based on time and distance are common in performance contracts, not only for headlining one-off concerts, but also with fairs and festivals that invest millions of dollars in talent and production costs and seek to protect the market value of an act or collection of acts in a given market.
Radius clauses for Bonnaroo in Manchester, Tenn., range from 60 to 90 days before and after the event and extend for 250-300 miles. The radius clause for April's Coachella fest was more specific, stipulating that artists "shall not advertise, perform, or publicize any performance: a) In Los Angeles, Orange, Riverside, San Bernardino, Santa Barbara, Ventura, or San Diego counties from December 1, 2009 until 30 days after the Festival; b) At any festival in the States of California, Nevada, or Arizona until 30 days after the Festival; c) Or announce any other U.S. festival prior to February 15, 2010."
Triangle Talent CEO Dave Snowden, who books many of the biggest state fairs in the country, says radius clauses on his events vary. "The widest is the Iowa State Fair, which takes in a 200-mile radius, excluding Davenport," Snowden says. "Most are 100-150 miles."
At six months before the festival and three months after, and extending for 300 miles outside of Chicago, the C3 radius clause for Lollapalooza is indeed a stiff one. Local promoters and venues in Chicago and other cities with major festivals have long complained that restrictive radius clauses cut into the number of acts that other talent buyers can book in the market. Chicago-based promoter Jam Productions didn't respond to a request for comment on the issue.
But a source with knowledge of the Chicago/Lollapalooza situation says that as many as half the bands booked by C3 for Lollapalooza break the radius clause by playing Chicago within the confines of the radius without repercussions from C3, and as many as 90 percent play inside the 300 miles within the specified time frame. One insider says that C3 had, in fact, never enforced the radius clause.
At least one agent confirms that Lollapalooza radius clauses aren't carved in stone. "The Lollapalooza clause is strict on paper, but not more so than those of other festivals of its size," says Tom Windish, president of Chicago-based Windish Agency, which has booked many acts at the fest. "I have found the Lollapalooza organizers to be flexible in addressing specific instances of modifying their exclusivity."
The radius clauses are primarily designed to keep the bigger, expensive acts "clean" in a given market, and such flexibility isn't uncommon, particularly with the smaller acts. In fact, only a handful of acts on any major festival play large venues, so cutting slack on the exclusivity isn't a make-or-break decision.
"I am pretty easy on OK'ing an event if it does not hurt my client," says Snowden, who represents fairs and festivals. "Most of the fairs and other events leave it up to us to OK some of these dates that fall a bit into the radius."
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