Madigan Looking In To Anti-Trust Issue Against Lollapalooza

By Marcus Gilmer in Arts & Entertainment on Jun 24, 2010 10:10PM

Jim DeRogatis has broke the news over at Vocalo that state attorney general Lisa Madigan is looking in to anti-trust issues connected with mega-music fest Lollapalooza for its radius clause which limits the ability of bands to perform within a 300-mile radius for a period of time before and after the annual fest. Sayeth DeRo:

Most concert promoters impose some form of radius clause on bands to ensure that they draw the biggest audience possible—and make the most money for all involved—without competing with themselves. A group that performs at a 1,000-seat venue in Chicago in mid-October might be required to refrain from performing at another smaller or larger club in this market from early September through early November, or at least refrain from announcing and advertising a November show until the October show sells out.

The difference with Lollapalooza’s radius clauses is that they are some of the longest and most extensive in the business, and they affect a huge number of acts, since there are more than 120 bands performing at the mega-concert. And, unlike a concert with two or three bands on the bill, Lollapalooza does not rely on any one headliner to sell tickets. In fact, promoters consistently trumpet the sheer volume of acts and wealth of different experiences offered in Grant Park as the main draw.

According to sources, DeRo says complaints from local venues and promoters are what prompted the investigation. Be sure to head to DeRo's blog for much more on the issue.