Some Taylor Swift fans had their wildest dreams crushed by her
Eras Tour. Swift, who played six sold-out shows last week in
Singapore, was allegedly offered up to $3 million USD from the
Singaporean government to abstain from performing elsewhere in
Southeast Asia. Amidst criticism from some Thai and Filipino public
figures that such a limitation is “unneighbourly,”
it’s time to shine a spotlight on a powerful tool in the live
entertainment industry: the radius clause.
What are radius clauses?
Radius clauses are a form of non-compete obligations commonly
found in live music performance agreements. These provisions
generally prohibit an artist from performing and/or publicizing
other performances within a designated radius around the location
where they are engaged to perform for a period of time leading up
to and after the performance.
These clauses often form part of the larger performance
agreement and can be enforced in various ways. Most commonly, if
the performer violates the radius clause, the promoter/organizer
can reclaim or withhold a portion of the performer’s fees.
Why are radius clauses used?
Radius clauses are used to protect the up-front costs and
initial investment of planning, hosting, producing and promoting a
live music event. By securing some level of exclusivity in respect
of an artist’s performance, engagers can ensure that they do
not lose potential attendees to a nearby venue some time before or
after their event.
In the post-COVID-19 era, geographical regions are looking to
reignite tourism. Singapore reportedly used its “post-COVID
tourism recovery effort” funding to support its deal with
Swift. While the exact economic return to Singapore from attracting
the Eras Tour is still unclear, one might anticipate significant
revenues considering that Swift’s tour is expected to generate
close to $5 billion in consumer spending in the United States
alone. In this context, adding a radius clause sweetener to the
deal with Swift could serve to prevent competing countries from
potentially siphoning away some of these revenues.
How broad can radius clauses typically be?
The breadth of radius clauses can vary. Temporally, the clauses
could range from a few weeks to several months. Geographically,
these clauses can limit the artist from performing within a few
miles around a city to hundreds of miles away, including bordering
states, provinces or even countries in the case of Taylor Swift and
Singapore. That being said, as Susan Abramovitch explained in the
New York Times article “Singapore Has Taylor Swift to Itself This Week,
and the Neighbors Are Complaining,” the geographical
breadth of the radius clause in Swift’s purported Singapore
deal is unusually broad, making it Taylor’s version of
the industry standard.
For instance, the Coachella music festival’s radius clauses
have contained extensive lists of geographical and temporal
restraints as revealed in a 2018 lawsuit. According to this claim, the
April-scheduled festival barred Coachella line-up artists from
performing in any other North American festival or hard ticket
concerts in Southern California from Dec. 15, 2017 to May 7, 2018.
Artists were also restricted from advertising, publicizing or
leaking performances, tour stops and festival appearances in
several states for various lengths of time.
Bad Blood associated with radius clauses
Radius clauses can become problematic if they are too broad. For
example, they can dissuade prominent acts from appearing in smaller
towns, lest that restrict their ability to perform in larger nearby
metropolises, thereby curtailing local venues’ ability to
secure major acts. On the other hand, artists who depend
financially on touring may be negatively impacted by the restricted
list of venues where they are permitted to perform.
There has also been a growing consolidation of music festivals
by major companies including Live Nation and Coachella’s parent
company, Anschutz Entertainment Group (AEG). These mergers enable
artists to participate in multiple festivals while remaining in
compliance with the radius clause. However, these consolidations
simultaneously prevent other promoters outside the Live Nation and
AEG umbrella from securing bookings.
Coachella is not the only festival to receive scrutiny over the
inclusion of radius clauses in their agreements. The use of radius
clauses by Chicago’s Lollapalooza festival was investigated by
the Illinois Attorney General for antitrust violations. It was
alleged that the festival was restricting artists from performing
within a 300-mile radius, including Detroit, Indianapolis and
Milwaukee. Additionally, these limitations allegedly spanned from
six months before and three months after Lollapalooza. This
investigation was closed in 2012 with no subsequent actions.
In Canada, the Toronto NXNE festival announced in June 2014 that
it would eliminate a 45-day radius clause that it had initially
implemented for its 2014 festival following protest by both fans
and artists. This decision underscored the impact of radius clauses
on emerging artists and the importance of maintaining a balanced
approach.
Radius clauses require a Delicate balance
Radius clauses should be approached with caution in the live
entertainment industry. While they can protect the exclusivity of
events and encourage robust ticket sales, overly broad clauses can
limit artists’ opportunities and restrict consumer choice. To
avoid backlash among performers and fans, these concerns should be
taken seriously by anyone engaged in the live entertainment
industry. Consult your legal counsel if you are considering
accepting or including a radius clause in your performance
agreement.
Read the original article on GowlingWLG.com
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
#Circling #Radius #Clauses #Music #Performance #Agreements #Music #Arts
