Jimmy Buffett, the famous singer-songwriter known for hits like “Margaritaville” and “Come Monday”, has a unique relationship with Live Nation Entertainment. Buffett signed a 10-year touring deal with Live Nation in 2008, which gave the company the exclusive rights to book Buffett’s concerts in amphitheaters and arenas. However, the deal has not gone as smoothly as planned. There have been rumors of tension between Buffett and Live Nation in recent years, leading some to wonder if the “Parrothead in Chief” will ask for a refund on the blockbuster contract.
Jimmy Buffett’s Career
Jimmy Buffett has been a mainstay on the music scene since the 1970s. Some key facts about his prolific career:
– Over 40 studio albums released since 1970
– Best known for escapist songs about beaches, bars, and boating
– Hits like “Margaritaville”, “Come Monday”, and “Cheeseburger in Paradise”
– Has sold over 20 million albums worldwide
– Annual tours fill large outdoor amphitheaters and arenas
– Has a devout fanbase known as “Parrotheads”
Despite being 70 years old, Buffett continues to have a busy touring schedule, often playing over 40 shows per year. His concerts are lively parties, with Hawaiian shirts, flip flops, and of course, margaritas being common in the crowd.
The Live Nation Deal
In 2008, Buffett made a landmark deal with Live Nation Entertainment, the world’s largest live entertainment company. The key terms included:
– 10 year exclusive deal from 2009-2018
– Live Nation to sponsor, promote, and produce all of Buffett’s concerts in amphitheaters and arenas
– Deal reportedly worth over $100 million
– At the time, Buffett called it “the concert deal of a lifetime”
The deal gave Live Nation control over routing, merchandising, and broadcasting rights for all of Buffett’s major concerts over that 10 year period. Considering Buffett’s lucrative tour income, it was a significant long-term asset for Live Nation.
Problems Between Buffett and Live Nation
In the first few years of the deal, things seemed to be going well. But tensions reportedly emerged down the road:
– Buffett was not happy about ticket prices, which had risen 35% from 2009-2013
– He accused Live Nation of exploiting his fans with high ticket costs
– In 2016, Buffett told some reporters the deal was a “mistake”
– He lost control of his concert planning and disliked how Live Nation routed his tours
– Reportedly threatened to retire from touring over disputes with Live Nation
– Felt Live Nation underpromoted and undersold some shows on his tours
For their part, Live Nation disputed these claims and said they did not have unilateral control over all aspects of Buffett’s tours. But the reports suggested a growing rift between the two parties.
Lawsuits Over the Deal
The conflict escalated in 2018 when Buffett filed a lawsuit against Live Nation over their handling of his tours. Key parts of the lawsuit:
– Claimed Live Nation broke the contract by not consulting Buffett on routing, merchandising, promotions, etc.
– Said Live Nation purposefully undersold tickets and failed to market shows properly
– Argued Live Nation booked shows in the wrong venues to reduce costs
– Estimated losses of over $100 million due to Live Nation’s mismanagement
Later in 2018, Live Nation countersued Buffett for allegedly violating the exclusivity clause in their contract. According to Live Nation, Buffett booked shows at venues that were prohibited under the deal because they were not arenas or amphitheaters controlled by Live Nation.
Both sides dug their heels in the legal battle. The core disagreement centered on who had control over booking decisions and promotions.
Settlement Reached in 2019
After nearly a year of legal wrangling, Buffett and Live Nation reached a settlement in 2019. The resolution involved ending the contract early, with key terms including:
– Buffett paid Live Nation a reported $38 million to exit the deal
– Live Nation maintained rights to Buffett’s touring profits through 2021
– Buffett regained control of his concert planning starting in 2020
– Remaining shows under Live Nation’s control were focused in Europe
So ultimately Buffett bought his way out of the 10 year contract. He likely paid a premium to get out early, but viewed it as worth it to get his touring rights back under his control.
What This Means for the Future
The settlement means Buffett is now free to map out his own tours and set ticket prices going forward. However, Live Nation will still profit off Buffett for a couple more years per the exit agreement.
Some key questions ahead:
– Will Buffett schedule more shows and set lower ticket prices now that he has regained power?
– What venue choices will he make without Live Nation’s restrictions?
– Will the 77-year old start planning retirement tours?
– Does Buffett have another mega-deal left in him or will he self-manage tours?
Regardless of what’s next, the episode was a cautionary tale for artists signing long exclusive deals and losing control over their careers. Buffett seems to have learned this lesson given his willingness to pay a premium to get out of the Live Nation contract early.
Conclusion
Jimmy Buffett’s $100 million 10-year deal with Live Nation ended messily with lawsuits and an 8-figure settlement to exit early. The core conflict centered on who had control over tour planning, promotions, and ticketing. After a legal battle, Buffett paid to break free of the contract and regain power over his iconic touring brand. The episode was an example of what can go wrong with long exclusive touring deals between artists and promoters. But now with touring rights back in his control, the free-spirited Buffett is liberated to steer his ship once again.