LOS ANGELES (CelebrityAccess) — A key commission of the Los Angeles City Council rejected Live Nation's bid to operate the Greek Theatre on Monday, setting the stage for a showdown vote in front of the full City Council.
According to the Los Angeles Times, the city council commission voted 4 to 1 during a packed hearing to reject the recommendation from the city's parks commission, who late last year voted to approve Live Nation's bid to operate the Greek over a big from a partnership between AEG and Nederlander Concerts, the venue's current longtime operator.
Live Nation claims that they submitted a superior bid for the venue concession, offering to spend more on venue upgrades than the rival Nederlander-AEG partnership, while Nederlander's bid offered the city more in the way of guaranteed revenue. The venue made nearly $23 million in gross receipts and provided more than $1.6 million in payments to the city in 2013, according to the parks department.
"Should the profit from the Greek Theatre go to fund L.A.’s parks and recreation programs throughout the city, or should it go to Live Nation shareholders?" Rick Mueller, president of AEG Live North America asked during the hearing.
A rep from Live Nation argued that the rejection of their bid seemed to flout the traditional bidding process.
"If politics trumps basic fairness and the integrity of the city's contracting process today, no company will ever bid on this contract again. Why bother?" Live Nation attorney Victor De la Cruz said at the Monday meeting.
The next step in the process will be a consideration of the recommendation by the full City Council. – Staff Writers