Shares in Live Nation Inc. dropped nearly 7 percent Friday on a report that the concert promoter is negotiating the departure of the company's chairman.
The Wall Street Journal reported Friday that Chairman Michael Cohl and Chief Executive Michael Rapino have argued for weeks over the company's policy of granting "360 deals." Under these contracts, the Beverly Hills-based company gives top acts upfront compensation in exchange for a share of their revenue-producing projects, including recorded-music sales, image licensing and even side ventures.
Cohl wants to make more of these deals while Rapino wants to cut back on them.
Cohl began his career in 1973 when he founded Toronto-based Concert Productions International Inc. He has helped shape the financial landscape of the modern concert business, enlisting corporate sponsors to underwrite production costs and helping usher in the era of the $500 concert ticket, the Journal reported.
Over the past year, Live Nation has inked a 360 deals with Jay-Z for $150 million and Madonna for $120 million.
Shares in Live Nation dipped 6.5 percent to $12.15 in early trading Friday.
For reprint and licensing requests for this article, CLICK HERE.