Maybe this had warning signs all over it. But after just two years at the helm, Irving Azoff has now officially announced his departure from Live Nation, effective immediately. And this is no half-step: according to an official statement from the company (curiously issued to a half-drunken industry on December 31st), Chairman Azoff is resigning from the Live Nation Board of Directors and as an 'employee,' while also divesting a substantial chunk of shares.
Concomitant with that departure, Liberty Media has purchased 1.7 million shares of Live Nation stock from Azoff, increasing its stake to 26.4%.
Amidst a raft of what nexts, Azoff issued the following statement:
Azoff's contract officially ended in 2014, which introduces a nice, princely parachute. According to SEC filings, Azoff is jumping with a near-$12 million payout, and accelerated diverstitures of roughly 2 million shares and 664,000 options.
There's also the matter of Front Line Management, which introduces the possibility of another crafty play by Azoff involving a large corporate concern. According to the Wall Street Journal, Azoff will retain the ability to manage his own superstar clients, most notably the Eagles, while leaving the rest of Front Line in the hands of Live Nation. "It wouldn't be the first time Mr. Azoff has sold his management company to a corporate employer, only to regain control for little or no money when he leaves," noted the Journal's Ethan Smith, once the subject of a fierce Twitter attack from Azoff himself. This time, Azoff was talking on good terms to Smith from a family vacation in Mexico.
But what really happens with Front Line, now wholly-owned by Live Nation after a $116 million final payment in 2011? Hits Magazine took it a step further, noting that serious questions surround the future of Front Line, now a seemingly less solid bet. Perhaps overdramatically, or perhaps dead-on, Hits pointed to an "impending wholesale exit of artists represented by Front Line," while noting that "many key artists and managers associated with Front Line don't have contracts with the company."
Suddenly, a generously-updated contract for CEO Michael Rapino makes sense. Just days earlier, Live Nation renewed Rapino's contract with a base salary bump to $2.3 million, and a number of changes to his stock compensation plan. Those changes were codified in a publicly-filed, SEC document.
Azoff is now primed for something more 'entrepreneurial,' and spoke (again to the Journal) of ripe opportunities ahead. That comes alongside relatively healthy funding levels for a broad number of music startups in 2012, a development hoisted by believers and the RIAA alike. As of December 31st, funding levels hovered around $620 million, a 34 percent bump over 2011 according to widely-cited stats compiled by Digital Music News.
The fun part comes when Azoff starts making big moves, friendly or unfriendly to Live Nation (and subject to various non-competes). Smith noted that Azoff was an ill-fit at the more zipped-down corporate culture at Live Nation, with stuff like practical jokes and Twitter-sparring incongruent with the company's idea of a good time. But that sort of tomfoolery is beneficial in startup-land, where wild twists-and-turns often demand a completely opposite, light-footed approach. Indeed, that was part of the thinking behind Live Nation's acquisition of BigChampagne, a another funky marriage between old-and-new that is just exiting honeymoon stage.
Looking ahead, Azoff's exit could introduce all sorts of uncertainties back at the Live Nation ranch. That includes potential opportunities or pitfalls for the likes of Ticketmaster CEO Nathan Hubbard and even BigChampagne cofounder and livenation.com GM Eric Garland, just to name a few pieces on this chessboard.
observer Tuesday, January 01, 2013
Irving punks Live Nation. nice
Jimmy Jamison Elbert Wednesday, January 02, 2013
The distorted information keeping coming from his own mouth. Irving didn't soley bring together Ticketmaster + LN...it was mainly BARRY DILLER. And do we need to remind anyone how that turned out? Poison dwarf got what he wanted from Diller, then tried to throw Barry down the drain, but didn't work out so well for Irv when Barry sold off all his stock and said ADIOS! This is typical pattern for Irv, that's how he got that infamous nickname. It bites. And will make you very sick no matter how lucrative it looks. No one cares about 70 Year old (!) OLD GUYS anymore, except your boss Ken Hertz who has alot at stake there and benefited from the Stale Champagne sale. Yea, that's the same guy who forces you to keep putting Devo, er I mean Vevo in headlines at DMN to keep them relevant when they're not anymore either. Zzzzz, Irv story just more thiefs who got what they wanted and now hitting the highway, and then will re-take (ie. steal back) what they think is still theirs to begin with. Like the Iggles and other Frontline artists who conveniently don't have any contracts with LNE. Think shareholders will react HOW to that sloppy handling of $120M sale? where's the internal business affairs guys at LN who who are ACCOUNTABLE TO SEC + SHAREHOLDERS..Wait for that bomb to explode there. Kinda like Bush-Cheney with the economic meltdown and stealing money + private insider deals.. and then giving a Billion back to the banks thru Paulson with no criminal liability. Giving back money to the people who originally STOLE IT. Brilliant Evil if you go in for that kinda dark side. Irv looks to these mentors and 'business models' to replicate in Holllywood and does it quite successfully AIDED BY ARMY OF LAWYERS in collusion and dare we say alleged negligent and shady behaviour. Hey, wake me when you have some real news to report brother! This is just the same thiefs in the temple , doing the same raping + pillaging they've been doing for decades under the guise of 'professional executives'...J O K E
Bald Headed John Thursday, January 03, 2013
Make way for de iron shaschage