The Stage

OFT asks TMA members if ATG deal damages competition in regions

Published Tuesday 8 December 2009 at 13:55 by Alistair Smith

Members of the Theatrical Management Association are being contacted by the Office of Fair Trading to canvass opinion about Ambassador Theatre Group’s recent purchase of Live Nation’s UK venues and whether the move could impact negatively on competition in regional theatre.

Producers and managers have been sent a series of questions by the OFT, with a particular focus on how ATG’s acquisition of 16 theatres from Live Nation might affect the touring market for major musicals.

Rival theatre owners and managers are asked whether they consider themselves to be competitors with any of ATG’s existing or newly acquired venues, if they ever hire out their venues in a “bundled/portfolio contract” and whether these deals ever include any special conditions.

Meanwhile, producers and promoters are asked, among other questions: “How will the merger impact your choice of venue operator in the UK for touring musicals? To the extent that you consider that your choice is reduced, how might this affect your liability to negotiate with venue operators?”

Interested parties have until December 11 to respond and the OFT is expected to reach a conclusion on the purchase by the end of January. ATG chief executive Howard Panter has previously indicated that the company is “confident that no adverse competition issues will emerge” from the OFT investigations.

Last month, ATG completed the £90 million purchase of Live Nation’s two London and 14 regional venues, making it the largest UK theatre operator of the modern era.