The world's leading live entertainment company, Live Nation Entertainment, laid out cost-reduction programs to soften the impact of losses caused by the COVID-19 lockdown. The biggest concert promoter announced on Monday, April 13, hiring freezes, employee furloughs, and executive-pay cuts as several of the actions to be taken. Due to postponements and cancellations of concerts and events that left a tremendous impact on the music industry, Live Nation secured an amendment to its existing credit agreement. A new $120 million revolving credit-facility loan has also been established. President and CEO Michael Rapino will waive the remaining $3 million from his pay. At the same time, the other top executives will have a salary cut up to 50 percent, based on the company filing to the Securities and Exchange Commission. Through the initiatives, the company is expected to stand on a total liquidity position of $3.8 billion. Aiming for a $500 million savings in 2020 with government support programs, cost-cutting measures to be implemented will also include a reduction in contractor jobs, renegotiation of rental fees, employee furloughs, reduction or elimination of expenses involving travel, entertainment, repairs, maintenance, and marketing. Live Nation believes the company will manage the COVID-19 impact through the aggressive cost and cash management plan, supplemented with a strong liquidity posture. It will provide the needed flexibility to adapt quickly when the shows resume. The official statement from Rapino says "with this additional liquidity, the flexibility in our debt covenants, and cost-cutting efforts, we believe that Live Nation has the financial strength to weather this difficult time." He further added that the company would be prepared to bounce back quickly and connect audiences and artists again at the anticipated concerts. Live Nation said that due to the imposition of social distancing, 8,000 ticketed shows had been either postponed or canceled, starting in mid-March. According to the company's reports, 15 million tickets have been sold, from which approximately 90 percent were from postponed shows (a total of 7,000 shows with 14 million tickets). The remaining 1,000 events and 1.6 million tickets were canceled, and refunds were issued to the fans. The company also said that some venues offered refunds for delayed events, between 5-20 percent of ticket holders chose to avail returns, while the majority opted to keep their tickets. Ticketmaster, the ticket sales and distribution company, owned by Live Nation Entertainment, created an uproar from the ticket holders yesterday. The company apparently has shifted its policy on refunds amid the pandemic situation. Previously, on one of the pages from the official website of Ticketmaster, it stated that refunds could be availed "if your ticket is postponed, rescheduled, or canceled." The wordings on the policy was quietly changed to "refunds are available if your event is canceled." With people being money-strapped with financial concerns caused by the coronavirus spread, many have sought refunds for the purchased tickets. The fans took their frustrations and anger to social media, citing people are now suffering, and Ticketmaster has no care about it. Ticketmaster issued a statement to USA TODAY, saying that its "policy on postponed events has been consistent," though the wording online was updated for clarity. The refund policy for postponed events are set by event organizers - not by Ticketmaster; it was further said. The company is focused on supporting the organizers in setting new dates and refund policies.Ticketholders' frustration over refund policy
