Augusta, Ga. mayor Hardie Davis expressed doubt at a press conference that the venerable tournament would be able to allow fans, though no official decision has been made as of Friday afternoon. “Tomorrow, the PGA Championship begins at Harding Park without fans, and that’s likely what will probably happen here in Augusta, where we’ll have the tournament without fans,” he told reporters Wednesday. The Masters, which traditionally plays as the of the PGA Tour’s four “major” tournaments in April, was rescheduled to November due to the coronavirus pandemic. Tournament officials at Augusta National Golf Course have not discussed plans related to fan attendance for the tournament since its rescheduling. “While more details will be shared in the weeks and months to come, we, like all of you, will continue to focus on all mandated precautions and guidelines to fight against the Coronavirus,” Masters chairman Fred Ridley said in April. “Along the way, we hope the anticipation of staging the Masters Tournament in the fall brings a moment of joy to the Augusta community and all those who love the sport.” At the time, Ridley noted: “We want to emphasize that our future plans are incumbent upon favorable counsel and direction from health officials. Provided that occurs and we can conduct the 2020 Masters, we intend to invite those professionals and amateurs who would have qualified for our original April date and welcome all existing ticket holders to enjoy the excitement of Masters week.” This weekend’s PGA Championship in San Francisco is being conducted with no fans, and the U.S. Open in September will also go on without fans. The fourth major – The Open (also commonly referred to as the British Open) has been cancelled entirely . When asked about the mayor’s comments, a representative of Augusta National opted not to comment for Golfworld. The post Augusta Mayor Says “Likely” Masters Will Happen Without Fans appeared first on TicketNews .

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No COVID Clusters Tied to NASCAR Race That Had 20,000 Fans

Some good news related to the potential for holding events with fans in attendance: public health officials say that they have not found any evidence that a NASCAR race in July with more than 20,000 in attendance led to any clusters of new COVID-19 cases. The July 15 NASCAR All-Star Race at Bristol Motor Speedway was one of the first large-scale events in the nation as states reopened following its initial shutdown due to the coronavirus. Event organizers put in place numerous measures to protect the safety of those attending, from physical distance within the stands to a requirement that all wear masks except while at their seats in the stands. It seems to have worked, at least based on tracking and tracing efforts surrounding new cases in the area performed by health officials. From the Herald Courier : Stephen May, medical director of the Sullivan County Regional Health Department, said the case investigation work includes two basic questions: First, has an individual traveled anywhere in the last two weeks? And second, has that person attended any large events or group gatherings? Those questions would probably capture whether an individual’s case was connected to the race, he said. When asked whether cases associated with local businesses could potentially have been related to the race, May said, “We have had rising clusters in all settings beginning even before the race, and we’ve not been able to tie any of them back to the race by using those two questions.” The Mount Rogers Health District, which includes Bristol, Virginia and several other Southwest Virginia localities, has also not recorded any cases directly linked to the July 15 race. “We do case investigation and contact tracing on every case,” Karen Shelton, the district’s director, wrote in an email to the Bristol Herald Courier. “We know the disease is being transmitted throughout our communities, so that can come from any venue — gas station, grocery store, restaurant. Many cases we do not know exactly where they contracted the disease — that is part of community spread,” Shelton said. A Virginia Department of Health spokeswoman confirmed Friday that the agency has not received any reports of cases directly linked to the race. NASCAR has remained among the few event organizers to allow fans at their races thus far – aided no doubt by the fact that many venues could hold enormous capacity crowds, meaning drastically reducing capacity still allows for a large number of spectators. The post No COVID Clusters Tied to NASCAR Race That Had 20,000 Fans appeared first on TicketNews .

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Foo Fighters Cancel Previously Postponed “Van Tour” Dates

Fans will have to wait a bit longer to celebrate the 25th anniversary of the Foo Fighters, The Dave Grohl-led band announced it was cancelling the Van Tour 2020 on Friday , having initially tried to postpone the dates to fall due to the coronavirus pandemic. “Playing a gig with a sock full of broken bones is one thing, but playing a show when YOUR health and safety is in jeopardy is another,” Foo Fighters frontman Dave Grohl said in a statement when the tour was initially postponed . “We f***ing love you guys. So let’s do this right and rain check sh*t. The SECOND we are given the go ahead, we’ll come tear sh*t up like we always do. Promise. Now go wash your hands.” Van Tour 2020 was initially designed to hit the same cities from the band’s initial tour in 1995. As the pandemic began to unfold, dates were pushed to October and December, but now even those dates have fallen victim to the continued growth of COVID-19 cases in the United States. From FooFighters.com: Important information about the Van Tour 2020: Foo Fighters have cancelled the Van Tour 2020. All shows listed below will be automatically refunded. For further information, please visit your point of purchase. We look forward to seeing you all as soon as it is safe for everyone to do so. 10/01/2020 Hamilton, ON | FirstOntario Centre 10/03/2020 Cleveland, OH | Rocket Mortgage Fieldhouse 10/05/2020 Detroit, MI | Little Caesars Arena 10/07/2020 Grand Rapids, MI | Van Andel Arena 10/09/2020 Knoxville, TN | Thompson-Boling Arena 10/13/2020 Cincinnati, OH | Heritage Bank Center 10/15/2020 Green Bay, WI | Resch Center 10/17/2020 Wichita, KS | INTRUST Bank Arena 12/01/2020 Oklahoma City, OK | Chesapeake Energy Arena 12/03/2020 Albuquerque, NM | Santa Ana Center 12/05/2020 Phoenix, AZ | Talking Stick Resort Arena The post Foo Fighters Cancel Previously Postponed “Van Tour” Dates appeared first on TicketNews .

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Eventbrite Stock Buoyed by Better than Expected Earnings

Eventbrite stock has ticked upward following the release of the company’s Q2 earnings report, up five pecent at mid-day compared to its close Thursday. Revenue was down 90 percent compared to a year ago – similar to Live Nation’s dismal numbers released Wednesday – but the company lost 44 cents per share, compared to estimates closer to 50 cents. “Our second quarter results demonstrate the resilience and ingenuity of our creators as well as Eventbrite’s ability to adapt to their needs in any environment,” said Julia Hartz, Eventbrite’s Co-Founder and Chief Executive Officer. “With the help of our platform, creators have turned to online and free events to stay connected with their audiences, who continue to show strong demand for live experiences. Although we expect the near-term environment for in-person events to remain challenging as a result of the ongoing impact of COVID-19, we are encouraged by steadily improving monthly ticket sales on the platform.” Net revenue was $8.4 million for the second quarter, compared to $80.8 over the same span a year ago. The company saw a net loss of $38.6 million for the quarter, with an adjusted EBITDA loss of $20.6 million. All of the numbers fell within expectations for a company operating in an industry brought to a near-complete halt amid the pandemic. Eventbrite stock has seen a rough 2020, directly attributable to the pandemic. After hovering around $21 a share in January and most of February, prices plummetted rapidly starting in late February, dropping below $10 by mid-March as the impact of the impending shutdowns began to take shape. After dropping as low as $5.86 in April, prices have rebounded slightly, hovering between $8-9 of late. Read the full Eventbrite shareholder letter here . The post Eventbrite Stock Buoyed by Better than Expected Earnings appeared first on TicketNews .

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Panel Consolidates StubHub Refund Lawsuits in California

A number of federal lawsuits filed in reaction to a change to StubHub refund policies on cancelled events in the wake of the coronavirus pandemic are being consolidated and moved to California . The U.S. District Court for the Northern District of California, where four lawsuits were filed and StubHub has its headquarters, will serve as the venue, per the decision by the U.S. Judicial Panel on Multidistrict Litigation on Thursday. StubHub announced in March that it would only allow refunds on cancelled events in locations where they were required by law. Everywhere else, consumers would receive a voucher good towards the purchase of future event tickets on the marketplace rather than a refund. The StubHub refund decision drew fire from a number of sources, and has spurred litigation by consumers and consideration of its legality from authorities as well . “Centralization in one court will eliminate duplicative discover, avoid inconsistent pretrial rulings, particularly on class certification, and conserve the resources of the parties, their counsel, and the judiciary,” the panel said in its decision. Similar lawsuits against VividSeats and SeatGeek were not lumped in with the StubHub refund lawsuits, due to the companies employing different terms of use and headquarters in other juridictions. Judge Haywood S. Gilliam Jr. will preside over the combined litigation. An appointee of President Barack Obama, Gilliam has served as United States District Judge since 2014. The post Panel Consolidates StubHub Refund Lawsuits in California appeared first on TicketNews .

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Live Nation Reports Revenue Down 98% in Q2 Earnings Report

With live events at a virtual standstill, it came as no surprise that Live Nation Entertainment wouldn’t have much good news for shareholders when it released its earnings report . The industry leader put as much positive spin on the numbers as could be managed, focusing on its expectation that events would be operating back at scale by summer 2021, but the current picture is grim, to say the least. Revenue is down by a whopping 98 percent compared to the second quarter of 2019, with only 131 events reported in the last three months – compared to 10,252 estimated in the same span a year earlier. The company has taken measures to weather the storm, boosting its liquidity with actions announced earlier this wee k. “While this is a challenging time for everyone – the live events business in particular – there are a few things that I am confident about: we are well positioned to weather this crisis, and we will get through this; when it is safe to return, we will have an abundance of fans and artists ready to enjoy live music again; and Live Nation will do everything in its power to meet our responsibilities to artists, fans, our employees and everyone else affected by this shutdown by bringing back as much live music as fast as possible when it is responsible to do so,” Live Nation CEO Michael Rapino said in the earnings statement preamble. Live Nation stock (NYSE: LYV) has hovered largely around the $40-50 mark of late, having recovered somewhat after a rapid decline beginning in late February as the reality of the impact the coronavirus would have on live events unfolded. Whether today’s earnings report will move those numbers (or simply fulfill expectations of bad news) will unfold in the next few days. The full text of the earnings report is pasted below: LIVE NATION ENTERTAINMENT REPORTS SECOND QUARTER 2020 RESULTS Highlights 86% of Fans Opting to Keep Tickets for Rescheduled Shows 19 Million Tickets Sold to More Than 4,000 Concerts and Festivals Scheduled for 2021 $800 Million Cost Reduction Program Target in 2020 $1.4 Billion Cash Management Program Target in 2020 LOS ANGELES , Aug. 5, 2020 /PRNewswire/ — Live Nation Entertainment, Inc. (NYSE: LYV) today released financial results for the quarter ended June 30, 2020. Over the past three months, our top priority has been strengthening our financial position to ensure that we have the liquidity and flexibility to get through an extended period with no live events. Our expectation is that live events will return at scale in the summer of 2021, with ticket sales ramping up in the quarters leading up to these shows. Confidence in the Future of Live Importantly, we remain confident that fans will return to live events when it is safe to do so. Our strongest indicator of demand is that fans are holding on to their tickets, even when given the option of a refund. Through the end of the second quarter, 86% of concert fans are keeping their tickets for rescheduled shows, demonstrating their continued desire to attend concerts in the future despite the current uncertainty. Our expectations for a robust outdoor summer season in 2021 are also reinforced by the two-thirds of fans keeping their tickets for canceled festivals so they can go to next year’s show, along with strong early ticket sales for festivals in the UK next summer – for example, Download and Isle of Wight are pacing well ahead of last year. Between the tickets held by fans for rescheduled shows and these festival onsales, we have already sold 19 million tickets to more than four thousand concerts and festivals scheduled for 2021, creating a strong baseload of demand that is pacing well ahead of this point last year. At the same time, surveys continue to show that concerts remain fans’ highest priority social event when it is safe to gather, with almost 90% of fans globally planning on attending concerts again. Keeping Artists and Fans Connected Understanding that it will be some time before we put on concerts at scale, we are innovating to find new and creative ways to help keep artists and fans connected in the meantime. Virtual concerts have proven to be in huge demand with fans, so we established the “Live From Home” platform to provide a convenient place for fans of all types to find performances from their favorite artists. In the second quarter, we had 67 million fans view over 18 thousand concerts and festivals globally. Among our highlights, this past weekend we streamed 150 performances for our Virtual Lollapalooza Festival. Given the tremendous popularity of these shows, we are seeing the potential for live streaming to become an additional long-term component of our concert business, allowing fans in other cities, or those who can’t attend, to enjoy the concert as well. At the same time, recognizing fans want to get back to attending concerts in person as soon as possible, we’ve launched socially distanced shows when and where permitted, including New Zealand , France , Denmark , Spain , Germany and Finland , as well as several cities across the United States . Return to Live While this is a challenging time for everyone – the live events business in particular – there are a few things that I am confident about: we are well positioned to weather this crisis, and we will get through this; when it is safe to return, we will have an abundance of fans and artists ready to enjoy live music again; and Live Nation will do everything in its power to meet our responsibilities to artists, fans, our employees and everyone else affected by this shutdown by bringing back as much live music as fast as possible when it is responsible to do so. Michael Rapino President and Chief Executive Officer Live Nation Entertainment, Inc. Additional Information on Liquidity At the end of the second quarter, the company had total cash and cash equivalents of $3.3 billion , which includes $1.8 billion of free cash. This free cash along with $966 million of available debt capacity provide the company with over $2.7 billion in available liquidity. The company’s operational cash burn rate estimate is $125 million per month and estimated gross burn rate is $185 million per month, both on average for the second quarter through the end of the year. In addition, subsequent to quarter-end, the company’s credit agreement was amended to further suspend its maintenance covenant until December 31, 2021 if it chooses, replacing it with a minimum liquidity test of $500 million , which is measured against the company’s free cash, available debt capacity, and up to $250 million of event-related deferred revenue. The company believes this level of liquidity and our associated burn rates, along with our credit actions, provide it with the ability to fund operations until the expected return of concerts at scale in the summer of 2021, preceded by ticket sales earlier in the year. The company will webcast a teleconference today at 2:00 p.m. Pacific Time to discuss its financial performance, operational matters and potentially other material developments. Interested parties should visit the “News / Events” section of the company’s website at investors.livenationentertainment.com to listen to the webcast. Supplemental statistical and financial information to be provided on the call, if any, will be posted to the “Financial Info” section of the website. A replay of the webcast will also be available on the Live Nation website. Notice Regarding Financial Statements The company has provided certain financial statements at the end of this press release for reference. These financial statements should be read in conjunction with the full financial statements, and the notes thereto, set forth in the company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission today and available on the SEC’s website at sec.gov . About Live Nation Entertainment: Live Nation Entertainment, Inc. (NYSE: LYV) is the world’s leading live entertainment company comprised of global market leaders: Ticketmaster, Live Nation Concerts, and Live Nation Media & Sponsorship. For additional information, visit investors.livenationentertainment.com . FINANCIAL HIGHLIGHTS – 2nd QUARTER (unaudited; $ in millions) Q2 2020 Reported Q2 2019 Reported Growth Q2 2020 Constant Currency Growth at Constant Currency Revenue Concerts $ 141.8 $ 2,639.5 (95) % $ 147.0 (94) % Ticketing (87.0) 370.8 * (87.4) * Sponsorship & Advertising 18.4 151.5 (88) % 19.0 (87) % Other and Eliminations 0.9 (4.8) * 0.9 * $ 74.1 $ 3,157.0 (98) % $ 79.5 (97) % Operating Income (Loss) Concerts $ (279.9) $ 60.7 * $ (283.0) * Ticketing (267.2) 64.1 * (269.5) * Sponsorship & Advertising (11.2) 91.4 * (10.9) * Other and Eliminations (6.8) (0.2) * (6.8) * Corporate (23.0) (44.4) 48 % (23.0) 48 % $ (588.1) $ 171.6 * $ (593.2) * Adjusted Operating Income (Loss) Concerts $ (210.7) $ 132.8 * $ (213.2) * Ticketing (203.9) 123.8 * (205.6) * Sponsorship & Advertising (1.8) 98.5 * (1.4) * Other and Eliminations (3.8) (1.3) * (3.8) * Corporate (11.7) (34.5) 66 % (11.7) 66 % $ (431.9) $ 319.3 * $ (435.7) * * percentages are not meaningful FINANCIAL HIGHLIGHTS – 6 MONTHS (unaudited; $ in millions) 6 Months 2020 Reported 6 Months 2019 Reported Growth 6 Months 2020 Constant Currency Growth at Constant Currency Revenue Concerts $ 1,135.2 $ 3,957.6 (71) % $ 1,153.0 (71) % Ticketing 197.3 708.4 (72) % 198.2 (72) % Sponsorship & Advertising 108.6 226.6 (52) % 110.4 (51) % Other and Eliminations (1.3) (7.8) 83 % (1.3) 83 % $ 1,439.8 $ 4,884.8 (71) % $ 1,460.3 (70) % Operating Income (Loss) Concerts $ (441.0) $ 1.6 * $ (445.7) * Ticketing (283.1) 106.7 * (286.1) * Sponsorship & Advertising 27.0 123.5 (78) % 28.2 (77) % Other and Eliminations (8.2) (0.3) * (8.2) * Corporate (55.4) (83.8) 34 % (55.4) 34 % $ (760.7) $ 147.7 * $ (767.2) * Adjusted Operating Income (Loss) Concerts $ (298.9) $ 138.2 * $ (302.4) * Ticketing (158.9) 224.2 * (161.0) * Sponsorship & Advertising 44.8 138.3 (68) % 46.0 (67) % Other and Eliminations (6.6) (2.7) * (6.6) * Corporate (32.8) (63.4) 48 % (32.8) 48 % $ (452.4) $ 434.6 * $ (456.8) * * percentages are not meaningful As of June 30, 2020 , total cash and cash equivalents were $3.3 billion , which includes $745 million in ticketing client cash and $1.8 billion in free cash. Event-related deferred revenue was $0.9 billion as of June 30, 2020 , compared to $1.6 billion as of June 30, 2019 . In addition, we had long-term deferred revenue of $486 million for events that have been rescheduled more than one year out as of June 30, 2020 . For the six months ended June 30, 2020 , net cash used in operating activities was $(390) million and free cash flow — adjusted was $(565) million . We currently expect capital expenditures for the full year to be approximately $215 million . KEY OPERATING METRICS Q2 2020 Q2 2019 6 Months 2020 6 Months 2019 (in thousands except estimated events) Concerts (1) Events: North America 24 7,213 4,787 12,888 International 107 3,039 2,419 5,571 Total estimated events 131 10,252 7,206 18,459 Fans: North America 8 15,844 5,727 24,810 International 41 11,178 4,714 17,136 Total estimated fans 49 27,022 10,441 41,946 Ticketing (2) Fee-bearing tickets (8,765) 53,185 27,444 103,211 Non-fee-bearing tickets 6,386 53,749 61,645 120,864 Total estimated tickets (2,379) 106,934 89,089 224,075 (1) Events generally represent a single performance by an artist. Fans generally represent the number of people who attend an event. Festivals are counted as one event in the quarter in which the festival begins, but the number of fans is based on the days the fans were present at the festival and thus can be reported across multiple quarters. Events and fan attendance metrics are estimated each quarter. (2) Events The fee-bearing tickets estimated above include primary and secondary tickets that are sold using our Ticketmaster systems or that we issue through affiliates. This metric includes primary tickets sold during the period regardless of event timing, except for our own events where our concert promoters control ticketing which are reported when the events occur. The non-fee-bearing tickets estimated above include primary tickets sold using our Ticketmaster systems, through season seat packages and our venue clients’ box offices, along with tickets sold on our “do it yourself” platform. These ticketing metrics are net of any refunds requested and any cancellations that occurred during the period and up to the time of reporting of our financial statements. Fee-bearing tickets include refunds of 10.7 million and 17.2 million for the three and six months ended June 30, 2020, respectively. Reconciliation of Certain Non-GAAP Measures to Their Most Directly Comparable GAAP Measures (Unaudited) Reconciliation of Free Cash Flow — Adjusted to Net Cash Provided by (Used in) Operating Activities ($ in millions) Q2 2020 Q2 2019 Net cash used in operating activities $ (1,022.1) $ (175.8) Less: Changes in operating assets and liabilities (working capital) 598.4 444.0 Free cash flow from earnings $ (423.7) $ 268.2 Less: Maintenance capital expenditures (15.3) (34.9) Distributions to noncontrolling interests (11.2) (13.5) Free cash flow — adjusted $ (450.2) $ 219.8 Net cash used in investing activities $ (68.2) $ (196.8) Net cash provided by (used in) financing activities $ 1,079.7 $ (26.4) ($ in millions) 6 Months 2020 6 Months 2019 Net cash provided by (used in) operating activities $ (390.4) $ 293.3 Less: Changes in operating assets and liabilities (working capital) (103.0) 52.2 Free cash flow from earnings $ (493.4) $ 345.5 Less: Maintenance capital expenditures (45.7) (59.4) Distributions to noncontrolling interests (26.3) (63.4) Free cash flow — adjusted $ (565.4) $ 222.7 Net cash used in investing activities $ (190.6) $ (281.7) Net cash provided by (used in) financing activities $ 1,462.1 $ (97.9) Reconciliation of Free Cash to Cash and Cash Equivalents ($ in millions) June 30, 2020 Cash and cash equivalents $ 3,290.1 Client cash (744.7) Deferred revenue — event-related (941.3) Accrued artist fees (21.6) Collections on behalf of others (35.2) Prepaid expenses — event-related 224.4 Free cash $ 1,771.7 Forward-Looking Statements, Non-GAAP Financial Measures and Reconciliations: Certain statements in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements regarding the company’s expectation that live events will return at scale in the summer of 2021, with ticket sales ramping up in the quarters leading up to these shows; fan and artist willingness to return to live events when it is safe to do so; the potential for live streaming to become an additional long-term component of the company’s concert business; the company’s positioning to weather the current crisis; the company’s ability to bring back as much live music as fast as possible when it is responsible to do so; the company’s estimated average operational cash burn rate and gross burn rate for the second quarter through the end of 2020; the impact of the company’s liquidity and associated burn rate estimates and recent credit actions on the company’s ability to fund basic operations until the anticipated return of concerts at scale in the summer of 2021, preceded by ticket sales earlier in the year; and the company’s anticipated capital expenditures for the year. Live Nation wishes to caution you that there are some known and unknown factors that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements, including but not limited to operational challenges in achieving strategic objectives and executing on the company’s plans, the risk that the company’s markets do not evolve as anticipated, the potential impact of any economic slowdown and operational challenges associated with selling tickets and staging events. Live Nation refers you to the documents it files from time to time with the U.S. Securities and Exchange Commission, or SEC, specifically the section titled “Item 1A. Risk Factors” of the company’s most recent Annual Report filed on Form 10-K, and Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K, which contain and identify other important factors that could cause actual results to differ materially from those contained in the company’s projections or forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date on which they are made. All subsequent written and oral forward-looking statements by or concerning Live Nation are expressly qualified in their entirety by the cautionary statements above. Live Nation does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise. This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. A reconciliation of each such measure to its most directly comparable GAAP financial measure, together with an explanation of why management believes that these non-GAAP financial measures provide useful information to investors, is provided herein. Adjusted Operating Income (Loss) , or AOI, is a non-GAAP financial measure that we define as operating income (loss) before certain stock-based compensation expense, loss (gain) on disposal of operating assets, depreciation and amortization (including goodwill impairment), amortization of non-recoupable ticketing contract advances and acquisition expenses (including transaction costs, changes in the fair value of accrued acquisition-related contingent consideration obligations, and acquisition-related severance and compensation). We use AOI to evaluate the performance of our operating segments. We believe that information about AOI assists investors by allowing them to evaluate changes in the operating results of our portfolio of businesses separate from non-operational factors that affect net income (loss), thus providing insights into both operations and the other factors that affect reported results. AOI is not calculated or presented in accordance with GAAP. A limitation of the use of AOI as a performance measure is that it does not reflect the periodic costs of certain amortizing assets used in generating revenue in our business. Accordingly, AOI should be considered in addition to, and not as a substitute for, operating income (loss), net income (loss), and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, AOI as presented herein may not be comparable to similarly titled measures of other companies. Constant Currency is a non-GAAP financial measure. We calculate currency impacts as the difference between current period activity translated using the current period’s currency exchange rates and the comparable prior period’s currency exchange rates. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. Free Cash Flow — Adjusted , or FCF, is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities less changes in operating assets and liabilities, less maintenance capital expenditures, less distributions to noncontrolling interest partners. We use FCF among other measures, to evaluate the ability of operations to generate cash that is available for purposes other than maintenance capital expenditures. We believe that information about FCF provides investors with an important perspective on the cash available to service debt, make acquisitions, and for revenue generating capital expenditures. FCF is not calculated or presented in accordance with GAAP. A limitation of the use of FCF as a performance measure is that it does not necessarily represent funds available for operations and is not necessarily a measure of our ability to fund our cash needs. Accordingly, FCF should be considered in addition to, and not as a substitute for, net cash provided by (used in) operating activities and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, FCF as presented herein may not be comparable to similarly titled measures of other companies. Free Cash is a non-GAAP financial measure that we define as cash and cash equivalents less ticketing-related client funds, less event-related deferred revenue, less accrued expenses due to artists and cash collected on behalf of others, plus event-related prepaids. We use free cash as a proxy for how much cash we have available to, among other things, optionally repay debt balances, make acquisitions and fund revenue generating capital expenditures. Free cash is not calculated or presented in accordance with GAAP. A limitation of the use of free cash as a performance measure is that it does not necessarily represent funds available from operations and it is not necessarily a measure of our ability to fund our cash needs. Accordingly, free cash should be considered in addition to, and not as a substitute for, cash and cash equivalents and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, free cash as presented herein may not be comparable to similarly titled measures of other companies. Reconciliations of Certain Non-GAAP Measures to Their Most Directly Comparable GAAP Measures (Unaudited) Reconciliation of Adjusted Operating Income (Loss) to Operating Income (Loss) ($ in millions) Operating income (loss) Stock-based compensation expense Loss (gain) on disposal of operating assets Depreciation and amortization Amortization of non- recoupable ticketing contract advances Acquisition expenses Adjusted operating income (loss) reported Foreign exchange impact Adjusted operating income (loss) constant currency Three Months Ended June 30, 2020 Concerts $ (279.9) $ 24.4 $ 0.6 $ 64.3 $ — $ (20.1) $ (210.7) $ (2.5) $ (213.2) Ticketing (267.2) 4.1 — 44.3 14.7 0.2 (203.9) (1.7) (205.6) Sponsorship & Advertising (11.2) 1.7 — 7.7 — — (1.8) 0.4 (1.4) Other & Eliminations (6.8) — — 4.4 (1.4) — (3.8) — (3.8) Corporate (23.0) 8.3 — 2.1 — 0.9 (11.7) — (11.7) Total Live Nation $ (588.1) $ 38.5 $ 0.6 $ 122.8 $ 13.3 $ (19.0) $ (431.9) $ (3.8) $ (435.7) Three Months Ended June 30, 2019 Concerts $ 60.7 $ 3.1 $ (0.2) $ 54.2 $ — $ 15.0 $ 132.8 $ — $ 132.8 Ticketing 64.1 1.6 0.1 39.5 18.2 0.3 123.8 — 123.8 Sponsorship & Advertising 91.4 0.7 — 6.4 — — 98.5 — 98.5 Other & Eliminations (0.2) — — 0.1 (1.2) — (1.3) — (1.3) Corporate (44.4) 6.3 — 3.6 — — (34.5) — (34.5) Total Live Nation $ 171.6 $ 11.7 $ (0.1) $ 103.8 $ 17.0 $ 15.3 $ 319.3 $ — $ 319.3 Six Months Ended June 30, 2020 Concerts $ (441.0) $ 26.7 $ 0.7 $ 136.6 $ — $ (21.9) $ (298.9) $ (3.5) $ (302.4) Ticketing (283.1) 5.8 — 82.5 34.9 1.0 (158.9) (2.1) (161.0) Sponsorship & Advertising 27.0 2.7 — 15.1 — — 44.8 1.2 46.0 Other & Eliminations (8.2) — — 4.4 (2.8) — (6.6) — (6.6) Corporate (55.4) 15.1 — 6.2 — 1.3 (32.8) — (32.8) Total Live Nation $ (760.7) $ 50.3 $ 0.7 $ 244.8 $ 32.1 $ (19.6) $ (452.4) $ (4.4) $ (456.8) Six Months Ended June 30, 2019 Concerts $ 1.6 $ 6.6 $ (0.3) $ 105.6 $ — $ 24.7 $ 138.2 $ — $ 138.2 Ticketing 106.7 3.1 0.1 76.9 36.9 0.5 224.2 — 224.2 Sponsorship & Advertising 123.5 1.4 — 13.4 — — 138.3 — 138.3 Other & Eliminations (0.3) — — 0.3 (2.7) — (2.7) — (2.7) Corporate (83.8) 13.9 — 6.5 — — (63.4) — (63.4) Total Live Nation $ 147.7 $ 25.0 $ (0.2) $ 202.7 $ 34.2 $ 25.2 $ 434.6 $ — $ 434.6 LIVE NATION ENTERTAINMENT, INC. CONSOLIDATED BALANCE SHEETS (unaudited) June 30, 2020 December 31, 2019 (in thousands) ASSETS Current assets Cash and cash equivalents $ 3,290,052 $ 2,470,362 Accounts receivable, less allowance of $69,778 and $50,516, respectively 618,580 994,606 Prepaid expenses 446,062 667,044 Restricted cash 10,313 3,880 Other current assets 68,187 57,007 Total current assets 4,433,194 4,192,899 Property, plant and equipment, net 1,121,665 1,117,932 Operating lease assets 1,420,649 1,402,019 Intangible assets Definite-lived intangible assets, net 936,837 870,141 Indefinite-lived intangible assets 368,762 368,954 Goodwill 2,012,641 1,998,498 Long-term advances 877,580 593,699 Other long-term assets 450,972 431,473 Total assets $ 11,622,300 $ 10,975,615 LIABILITIES AND EQUITY Current liabilities Accounts payable, client accounts $ 835,981 $ 1,005,888 Accounts payable 124,806 100,237 Accrued expenses 1,088,153 1,391,486 Deferred revenue 1,157,311 1,391,032 Current portion of long-term debt, net 63,885 37,795 Current portion of operating lease liabilities 119,473 121,950 Other current liabilities 102,687 59,211 Total current liabilities 3,492,296 4,107,599 Long-term debt, net 4,831,088 3,271,262 Long-term operating lease liabilities 1,412,190 1,374,481 Long-term deferred income taxes 177,749 178,173 Other long-term liabilities 691,219 130,648 Commitments and contingent liabilities Redeemable noncontrolling interests 334,228 449,498 Stockholders’ equity Common stock 2,125 2,113 Additional paid-in capital 2,295,069 2,245,619 Accumulated deficit (1,704,599) (949,334) Cost of shares held in treasury (6,865) (6,865) Accumulated other comprehensive loss (243,805) (145,713) Total Live Nation stockholders’ equity 341,925 1,145,820 Noncontrolling interests 341,605 318,134 Total equity 683,530 1,463,954 Total liabilities and equity $ 11,622,300 $ 10,975,615 LIVE NATION ENTERTAINMENT, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (in thousands, except share and per share data) Revenue $ 74,084 $ 3,157,009 $ 1,439,777 $ 4,884,837 Operating expenses: Direct operating expenses 194,557 2,327,414 1,068,377 3,479,018 Selling, general and administrative expenses 323,352 513,497 837,373 978,363 Depreciation and amortization 122,767 103,826 244,847 202,738 Loss (gain) on disposal of operating assets 559 (101) 689 (248) Corporate expenses 20,916 40,787 49,228 77,243 Operating income (loss) (588,067) 171,586 (760,737) 147,723 Interest expense 52,689 36,792 96,688 73,307 Interest income (2,429) (3,818) (6,902) (6,366) Equity in losses (earnings) of nonconsolidated affiliates 6,613 (5,828) 4,041 (8,972) Other income, net (5,173) (430) (545) (3,833) Income (loss) before income taxes (639,767) 144,870 (854,019) 93,587 Income tax expense (benefit) (29,183) 28,750 (32,513) 32,708 Net income (loss) (610,584) 116,120 (821,506) 60,879 Net income (loss) attributable to noncontrolling interests (43,067) 12,765 (69,205) 9,968 Net income (loss) attributable to common stockholders of Live Nation $ (567,517) $ 103,355 $ (752,301) $ 50,911 Basic net income (loss) per common share available to common stockholders of Live Nation $ (2.67) $ 0.43 $ (3.62) $ 0.12 Diluted net income (loss) per common share available to common stockholders of Live Nation $ (2.67) $ 0.41 $ (3.62) $ 0.11 Weighted average common shares outstanding: Basic 211,693,923 209,998,048 211,371,109 209,456,196 Diluted 211,693,923 219,977,612 211,371,109 219,107,351 Reconciliation to net income (loss) available to common stockholders of Live Nation: Net income (loss) attributable to common stockholders of Live Nation $ (567,517) $ 103,355 $ (752,301) $ 50,911 Accretion of redeemable noncontrolling interests 1,595 (13,515) (12,945) (25,827) Net income (loss) available to common stockholders of Live Nation—basic (565,922) 89,840 (765,246) 25,084 Convertible debt interest, net of tax — 86 — — Net income (loss) available to common stockholders of Live Nation—diluted $ (565,922) $ 89,926 $ (765,246) $ 25,084 LIVE NATION ENTERTAINMENT, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) Six Months Ended June 30, 2020 2019 (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (821,506) $ 60,879 Reconciling items: Depreciation 122,825 106,015 Amortization 122,022 96,723 Amortization of non-recoupable ticketing contract advances 32,126 34,267 Deferred income tax benefit (12,316) (456) Amortization of debt issuance costs and discounts 14,856 10,828 Non-cash compensation expense 50,270 24,926 Unrealized changes in fair value of contingent consideration (24,789) 5,821 Provision for uncollectible accounts receivable 25,764 5,615 Other, net (2,609) 922 Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: Decrease (increase) in accounts receivable 363,079 (256,575) Increase in prepaid expenses and other assets (50,493) (380,285) Increase (decrease) in accounts payable, accrued expenses and other liabilities (807,552) 5,880 Increase in deferred revenue 597,963 578,763 Net cash provided by (used in) operating activities (390,360) 293,323 CASH FLOWS FROM INVESTING ACTIVITIES Advances of notes receivable (11,457) (13,931) Collections of notes receivable 12,782 5,337 Investments made in nonconsolidated affiliates (8,150) (28,931) Purchases of property, plant and equipment (142,509) (135,940) Cash paid for acquisitions, net of cash acquired (37,471) (87,595) Purchases of intangible assets (5,594) (20,614) Other, net 1,758 20 Net cash used in investing activities (190,641) (281,654) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from long-term debt, net of debt issuance costs 1,602,097 558 Payments on long-term debt (11,087) (21,933) Distributions to noncontrolling interests (26,315) (63,373) Purchases and sales of noncontrolling interests, net (88,191) (1,463) Proceeds from exercise of stock options 11,406 10,199 Taxes paid for net share settlement of equity awards (17,339) (10,259) Payments for deferred and contingent consideration (9,940) (19,962) Other, net 1,467 8,323 Net cash provided by (used in) financing activities 1,462,098 (97,910) Effect of exchange rate changes on cash, cash equivalents and restricted cash (54,974) (6,983) Net increase (decrease) in cash, cash equivalents, and restricted cash 826,123 (93,224) Cash, cash equivalents and restricted cash at beginning of period 2,474,242 2,378,203 Cash, cash equivalents and restricted cash at end of period $ 3,300,365 $ 2,284,979 Contacts Jackie Beato, (310) 975-6858, Investors: IR@livenation.com , Media: Media@livenation.com The post Live Nation Reports Revenue Down 98% in Q2 Earnings Report appeared first on TicketNews .

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Report: DTI Management Acquiring TEVO, Broker Genius and Seat Scouts

According to ticket industry consultant Eric Fuller, DTI Management is on the verge of a trio of acquisitions, picking up some big players in a secondary ticketing world hobbled by the coronavirus pandemic. DTI, Fuller writes in a post on Medium , is in the process of acquiring Ticket Evolution, Broker Genius, and Seat Scouts. TicketNews reached out to management at all four companies, but has not received a response as of Wednesday afternoon. Should the rumored acquisitions pan out, it would make DTI Management, a large-scale consolidator of ticket brokers that already owns 1-Ticket, an even bigger player in the ticketing industry and ramp up the possibility of competing directly with companies such as Vivid Seats, StubHub, and TicketNetwork. “It’s gut check time for the ticket markets. The big players have begun moving the pieces around the board,” Fuller writes. “Reportedly all three of the acquired companies were suffering from cash flow issues related to the near collapse of ticket markets related to the Covid-19 pandemic. Absent any anti-trust objections from regulators, this move by DTI puts them into place to be an effective competitor to conventional secondary markets and to have significant control over the way ticket brokers price and distribute tickets.” Ticket Evolution is a ticket broker-focused secondary ticket exchange, while Broker Genius provides tools for real time automation of prices across ticket marketplaces. Seat Scouts was building as a competitor to the BG product, but hobbled by legal action brought against it for illegal appropriation of trade secrets. Fuller points out that one company acquiring both would effectively allow it to own all of the proprietary technology owned by both and resolve any legal issues in place. This story will be updated upon confirmation or comment from any of the involved companies. The post Report: DTI Management Acquiring TEVO, Broker Genius and Seat Scouts appeared first on TicketNews .

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UConn Becomes First FBS School to Cancel Football Season

Newly independent for the fall of 2020, the University of Connecticut called off its football season Wednesday , becoming the first Football Bowl Subdivision school to do so amid the coronavirus pandemic. UConn, which departed the American Athletic Conference to return to the Big East – which does not sponsor football – was left with numerous holes in its schedule as multiple conferences switched to league-only formats for the fall. Games against Illinois, Indiana, Ole Miss and Maine were already lost due to conference schedule shifts , with North Carolina and Virginia also likely to be called off . “After receiving guidance from state and public health officials and consulting with football student-athletes, we’ve decided that we will not compete on the gridiron this season,” athletic director David Benedict said in a statement. “The safety challenges created by COVID-19 place our football student-athletes at an unacceptable level of risk.” Connecticut was one of the hardest-hit states in the early phase of the pandemic, due in large part to its proximity to New York, where many residents work. It has since become a model for slowing the spread of COVID-19, with its 7-day average of cases below 100 since mid-June. That success, however, added additional layers of difficulty for athletics officials hoping to get the Huskies on the field, as Gov. Ned Lamont has restricted travel to and from more than 30 states – instituting self-quarantine requirements for those moving through high-infection areas across the country. “The necessary measures needed to mitigate risk of football student-athletes contracting the coronavirus are not conducive to delivering an optimal experience for our team,” Benedict continued. “Ultimately, the student-athletes would rather preserve their year of eligibility with an eye to competing under more typical circumstances during the 2021 season.” Players came out in support of the decision to call off the season, which will mark the first since 1943 without a Connecticut team taking to the gridiron. The post UConn Becomes First FBS School to Cancel Football Season appeared first on TicketNews .

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Indianapolis 500 Switches Gears to No Fan Attendance Format

The Indianapolis 500 announced Tuesday that it would not be able to have fans in attendance, taking place on August 23 with just television cameras and race officials at the speedway. Organizers held out for fans as long as they could – going to 50 percent capacity in late June and down to 25 percent a week ago before making the final decision to go with no attendance at all. “We said from the beginning of the pandemic we would put the health and safety of our community first, and while hosting spectators at a limited capacity with our robust plan in place was appropriate in late June, it is not the right path forward based on the current environment,” race organizers said in a statement announcing the change. “Our commitment to the Speedway is unwavering, and we will continue to invest in the Racing Capital of the World. We encourage everyone to watch this year’s race on NBC, and we look forward to welcoming our loyal fans back to ‘The Greatest Spectacle in Racing’ on May 30th of 2021.” Those holding tickets for 2020 will be able to have them credited forward for the 2021 race in the same location. Coverage of the race and practice sessions prior to the August 23 104th running of the Indy 500 will be available via NBC Sports Gold, NBCSN or NBC. IMS.com and INDYCAR.com have the full streaming and broadcast schedule. The full release announcing the Indy 500 change is available below: UPDATE FROM THE INDIANAPOLIS MOTOR SPEEDWAY It is with great regret that we announce the 104th Running of the Indianapolis 500 will take place on Aug. 23 without fans. This tough decision was made following careful consideration and extensive consultation with state and city leadership. As dedicated as we were to running the race this year with 25 percent attendance at our large outdoor facility, even with meaningful and careful precautions implemented by the city and state, the COVID-19 trends in Marion County and Indiana have worsened. Since our June 26 announcement, the number of cases in Marion County has tripled while the positivity rate has doubled. We said from the beginning of the pandemic we would put the health and safety of our community first, and while hosting spectators at a limited capacity with our robust plan in place was appropriate in late June, it is not the right path forward based on the current environment. We encourage Hoosiers to continue making smart decisions and following the advice of our public health officials so we can help get Indiana back on track. Penske Corporation made a long-term investment to be the steward of this legendary facility. While we were very excited to showcase the investments and enhancements we have made in the guest experience, we know we have reached the right decision. As much as Roger Penske and everyone associated with the ‘500’ wanted to race with fans this year, we ultimately reached this conclusion in partnership with the state of Indiana and city of Indianapolis. Our commitment to the Speedway is unwavering, and we will continue to invest in the Racing Capital of the World. We encourage everyone to watch this year’s race on NBC, and we look forward to welcoming our loyal fans back to ‘The Greatest Spectacle in Racing’ on May 30th of 2021. Further Information from IMS All on-track activity during the month of August, including practice and qualifications, will be closed to the general public. Individuals who still have tickets to this year’s Indy 500 will be credited for the 2021 Indianapolis 500 and will retain their seniority and their originally assigned seats. The first Indy 500 practice will take place on Wednesday, Aug. 12, with a full schedule available on IMS.com. All of the action from IMS can be viewed via NBC Sports Gold, NBCSN or NBC. Visit IMS.com or INDYCAR.com for a comprehensive streaming and broadcast schedule. The 104th Running of the Indy 500 will take place Sunday, Aug. 23, with national coverage beginning on NBC at 1 p.m. ET. Local Central Indiana coverage of the race will be available on NBC affiliate WTHR. Broadcast coverage of qualifications on Saturday, Aug. 15 begins on NBC at 3 p.m. ET. Sunday, Aug. 16 broadcast coverage of Pole Day begins on NBC at 1 p.m. ET. The post Indianapolis 500 Switches Gears to No Fan Attendance Format appeared first on TicketNews .

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Sports Teams Considering Facial Recognition Despite Privacy Concerns

Facial recognition technology is being considered by sports teams looking to find ways to get fans back in buildings amid the coronavirus pandemic, according to the Wall Street Journal . The New York Mets and Los Angeles Football Club are currently testing the technology, despite widespread outcry against the technology by privacy activists in recent years. “Our plan is to move everything to face,” says Christian Lau, chief technology officer of LAFC and Banc of California Stadium. Ticket holders will be able to upload a selfie to an account with the facial recognition vendor Clear, which would also link to their Ticketmaster account. At entry, the fan would mug for the camera (pulling down their mask), at which point the system would verify their identity in the database and grant them entry. Such systems were barred from use by regulators in Holland, where AFC Ajax had installed facial recognition cameras as part of a pilot program for ticketless entry. Those cameras came down six months later when Dutch data-protection regulators pointed out that they violated privacy rules in place. But the team hopes to use the pandemic to get them back in place. “Hopefully we use this coronavirus pandemic to change rules,” said Henk van Raan, chief innovation officer at the arena. “The coronavirus is a bigger enemy than [any threat to] privacy.” The threats to privacy were discussed widely during a successful campaign in the United States against the use of facial recognition technology at festivals in this country . Ticketmaster has toyed with the technology since at least 2018, but its parent company and AEG backed off of its usage for the time being after a huge push by artists including Rage Against the Machine’s Tom Morello and Dierks Bentley. The fact that a recent study showed facial recognition to be racially biased is another point against its use, however the ability to increasingly restrict consumer rights through technology is a powerful lure for organizations seeking more and better data on their patrons. “These organizations can be slow movers, but once something takes hold, it very quickly can become an industry standard,” said Thomas Alomes, a director for Austin, Texas-based Sports Tech World Series, which does research and consulting work for professional sports organizations. The post Sports Teams Considering Facial Recognition Despite Privacy Concerns appeared first on TicketNews .

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