Oak View Group/Ticketmaster Ties Endanger CT Venue Deal

The cozy relationship between Oak View Group and Ticketmaster/Live Nation Entertainment is central to an effort by Connecticut lawmakers to put a halt to a multi-million dollar arena renovation plan in Hartford. OVG has promised to share in the costs of the renovation of the XL Center, a 16,000 seat arena in the state’s capitol, but GOP lawmakers are expressing their doubts related to OVG’s central role in the Department of Justice’s antitrust case against Live Nation.

“This deal literally involves tens of millions of dollars of the state taxpayers’ money,” reads a statement issued by state Sen. Stephen Harding (R) urging the state to pause the renovation plans until Attorney General William Tong – one of more than 30 AGs to sign on as co-plaintiffs in the DOJ case against Live Nation Entertainment – publicly share any concerns he might have over OVG’s participation in the project.

“The State of Connecticut is on the verge of entering into a multi-million, multi-decades-long contract which binds UConn and involves an entity that is currently being investigated by the federal Department of Justice for anti-competitive behavior,” Sen. Harding continues. “This should raise a big red flag for all political parties and for all who want to see the XL Center, downtown Hartford, and UConn sports thrive.”

Oak View Group took over management of XL Center as part of its purchase of Spectra three years ago. It has promised to contribute some $20 million towards the pending renovation, which will cost in excess of $145 million to complete, relying primarily on public funding from the state. The money would entitle OVG to a 20-year extension on its current deal to manage the facility, plus granting it the first $4 million in annual profits from the venue, after which it would split profits with the Capital Region Development Authority which handles the venue’s upkeep.

Founded by former Ticketmaster CEO and Live Nation chair Irving Azoff and former AEG CEO Tim Leiweke in 2015, OVG has quickly ascended to the top of the food chain in the venue management world. But its role was thrown into sharp relief this spring when the Department of Justice prominently featured the company in its complaint against Live Nation Entertainment saying that it and Ticketmaster form an unlawful monopoly at the center of live entertainment. According to the DOJ, Azoff’s company has deliberately avoided competing with Live Nation, choosing instead to collude with them.

“Live Nation and Oak View Group have colluded and established a partnership to allocate business lines, avoid competing with each other, and chart a mutually beneficial plan to cement Live Nation’s dominance,” reads one section of the 100-plus page complaint filed in District Court for the Southern District of New York.

READ MORE | DOJ Alleges Oak View Group Colluded With Live Nation in Lawsuit

It should be noted that during the short time that OVG has been managing XL Center, the venue has switched most of its ticketing to Ticketmaster, though UConn maintains its ticketing deal with Paciolan as of the summer of 2024.

In response to the pressure from the state GOP leadership, AG Tong said he will recuse himself from any votes on the deal held by the state’s bond commission – which has already approved an $80 million contribution to the renovations, but has not approved an increase after the estimated costs for the work ballooned – necessitating a new vote. He did stress the importance in getting the renovations approved for the venue, which has been in operation since the mid-1970s and previously served home for the NHL’s Hartford Whalers before their 1997 move to North Carolina.

“Vibrant, economically strong cities are essential to our state’s long-term prosperity,” Tong wrote in his letter. “The future of the XL Center is indeed a key component to the economy of Hartford.”

CRDA Executive Director Michael Freimuth, on Tuesday, described Tong’s response as “important news,” and noted a CRDA vote on the deal has been tentatively scheduled for Tuesday, July 30. That will depend on clearing some “final issues” in ongoing discussions with OVG, Freimuth said.

CRDA has requested a Bond Commission meeting to approve the funding in early August.

Oak View Group has not issued any public statements on the pushback related to the XL Center renovations as of Thursday.