Monday, April 1, 2024

Taking on Ticketmaster

Inside the Golden State political arena
Apr 01, 2024 View in browser
 
POLITICO California Playbook

By Lara Korte and Dustin Gardiner

FILE - Taylor Swift performs during "The Eras Tour," Friday, May 5, 2023, at Nissan Stadium in Nashville, Tenn. Ticketmaster abruptly postponed ticket sales for six of Swift's upcoming shows in France on Tuesday, July 11, 2023. An explanation wasn’t immediately clear, but in posts on Ticketmaster’s French Twitter several hours after the pause began, the ticket seller cited a problem with a third-party provider. (AP   Photo/George Walker IV, File)

Taylor Swift performs during "The Eras Tour," Friday, May 5, 2023, at Nissan Stadium in Nashville, Tenn. | AP

THE BUZZ: SWIFT REBUKE — Assemblymember Buffy Wicks wants to end exclusive control by companies like Ticketmaster over the sale of concert and sporting tickets, setting up a battle between consumer groups and a powerful sector of the entertainment industry that is still reeling from the 2022 Taylor Swift ticketing fiasco.

The bill from the Oakland Democrat, first reported by Playbook, would go further than some of the proposals that stalled in the California Legislature last year amid fierce lobbying from industry giants. In addition to lifting restrictions on reselling tickets, Wicks’ bill would allow fans more choice in purchasing.

Instead of buying tickets through one company — like Ticketmaster, which typically has an exclusive contract with the venue — fans could instead choose from a variety of companies, similar to the way travel websites like Kayak or Hotels.com operate, Wicks said.

“We want to make sure that we have competition and choice for consumers so we don't end up with situations like the Taylor Swift concerts — like ‘Lord of the Flies’ attempts to get tickets,” she said.

The bill is a direct attack on Ticketmaster and its parent company, Live Nation Entertainment, which has faced ongoing government scrutiny since the two entities merged in 2010. The discontent reached a fever pitch after Ticketmaster’s chaotic handling of the pre-sale for Swift’s Eras Tour, which was followed by a Senate hearing and an antitrust investigation from the Department of Justice. The probe is still ongoing.

Wicks, who has also proposed ambitious housing and privacy policies and chairs the Appropriations Committee, is one of the more powerful lawmakers in Sacramento. But Live Nation is a formidable opponent, able to dilute or stall legislation in California and around the nation.

The company enjoys support from groups like the National Independent Venue Association and the Music Artists Coalition, whose board members include major celebrities like Anderson .Paak, Meghan Trainor and Dave Matthews. The groups have raised concerns that the legislation will hurt small businesses and artists by empowering third-party ticket resellers.

“You can bet that the music artist community will come out against this bill unless some substantial changes are made,” Jordan Bromley, a lawyer and board member, said of Wicks’ bill.

Dan Wall, Live Nation Entertainment’s executive vice president of corporate and regulatory affairs, said Wicks’ bill would benefit ticket resellers, not consumers.

“When we and others who have a true stake in producing events — like artists, teams, and venues — explain the real effect of these bills, and how they mainly promote ticket scalping, legislators figure out on their own that they aren’t good for consumers,” he said in a statement.

Robert Herrell, executive director of the Consumer Federation of California, which is co-sponsoring Wicks’ bill this year, acknowledged that Live Nation has a powerful presence in Sacramento, but said in the absence of action from Washington, the state needs to lead in taking on what he sees as a monopoly.

"We cannot rely, in California, on the feds to do this for us," he said. "If you're waiting for them to act, it's going to be like Waiting for Godot, and we all know how that plays out."

GOOD MORNING. Happy Monday. Thanks for waking up with Playbook. Beware the April Fools pranksters today…

Now you can text us at ‪916-562-0685‬‪ — save it as “CA Playbook” in your contacts now. Or drop us a line at lkorte@politico.com and dgardiner@politico.com, or on X — @DustinGardiner and @Lara_Korte.

WHERE’S GAVIN? Nothing official announced.

 

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UNION TOWN

LOS ANGELES, CALIFORNIA - APRIL 16: McDonald’s employee Nidia Torres (R) speaks at a rally of fast food workers and supporters for passage of AB 257, a fast-food worker health and safety bill, on April 16, 2021 in the Boyle Heights neighborhood of Los Angeles, California. The rally was held outside of a McDonald’s location where a worker lodged   public health complaints and a wage theft complaint. Some fast food workers are on strike in Los Angeles County today in support of the bill.  (Photo by Mario Tama/Getty Images)

McDonald’s employee Nidia Torres (R) speaks at a rally of fast food workers on April 16, 2021 in the Boyle Heights neighborhood of Los Angeles, California. | Getty Images

MINIMUM WAGE WARS — The years-long effort to raise the minimum wage for fast food workers to $20 per hour finally goes into effect today, but questions remain about who will get a wage boost under the law.

In protracted negotiations overseen by Newsom's office, SEIU and industry groups went back and forth over which types of restaurants would be covered by the law and which ones would not. Controversy flared this year when Bloomberg News reported Newsom donor and Panera owner Greg Flynn sought to carve out his restaurants, pointing to language exempting places that bake bread. Newsom then said the law applied to Panera, and Flynn committed to paying $20-per-hour at his California franchises.

At last month's inaugural meeting of the new industry-overseeing Fast Food Council, handouts informed people that shops selling "ice cream, coffee, boba tea, pretzels, or donuts" might need to give workers a raise. California Labor Commissioner attorney Miles Locker explained why an exemption for making bread doesn't apply if the dough is mixed off-site, as with Panera.

"Here’s the thing about statutes: Sometimes a word that’s used in it is of enormous significance,” Locker said, noting that the statute “talks about an establishment that ‘produces’ bread — it doesn’t say ‘bakes’ bread.”

Sound clear? It doesn't to restaurant owners who are still looking for answers.

Further exemptions were cemented this month with cleanup legislation from the bill’s author, Assemblymember Chris Holden, which clarified the law doesn’t apply to workers at restaurants in places like airports, hotels, event centers and theme parks — many of which already have union contracts granting higher wages.

The Department of Industrial Relations also recently issued an FAQ page outlining restaurants’ obligations. If an employee believes their employer is subject to the law, they can bring a legal challenge in court, at which point, “the employer will carry the burden of showing they are not covered by the new law.”

— with help from Jeremy B. White

INFLUENCE WATCH

LOBBYING FOR FOREVER — The people hoping to build a model city in Solano are looking to Sacramento. California Forever has signed up Steven Cruz to lobby state officials — a reminder that the town’s would-be founders are playing a long game.

Erecting an entirely new city will take decades, and it could eventually require winning state help and clearing state hurdles. The project already signed up a team of well-connected Sacramento veterans. For now, California Forever’s immediate political imperatives are local as it campaigns to persuade Solano voters to clear the way by changing zoning laws in November.

But a project of this magnitude also touches on contentious issues like water rights and highway access — and Cruz’s brother sits on the California Transportation Commission. There’s always the chance of a hostile legislative response, particularly given the less-than-enthusiastic reception from Newsom and state lawmakers.

“Our plan will require collaboration at the local, state and federal level in the coming years,” spokesperson Brian Brokaw said in a statement, which means they’ll “continue to share details of our plan with legislators and the administration.” — Jeremy B. White

 

In celebration of Earth Month, the USC Wrigley Institute for Environment and Sustainability and the USC Dornsife Center for the Political Future, in collaboration with POLITICO, host “Climate Forward 2024: Climate at the Crossroads” on April 4, 2024 at USC. Top experts from politics, government, media, and academia will discuss climate change issues with a focus on finding practical policy and business solutions as well identifying ways to remove political obstacles to implementing those changes. Register to attend in person or virtually.

 
 
ON THE AGENDA

FLOOR SESH — The Assembly and Senate convene at 1 p.m. and 2 p.m. today, respectively.

NOT ON THE AGENDA — Spring Break is over, Proposition 1 has passed, but Gov. Gavin Newsom has yet to reschedule his State of the State address. The California Constitution requires the governor to “report to the Legislature each calendar year on the condition of the State,” but doesn’t specify a deadline or a format.

The governor’s office told us it is coordinating with the Legislature to set a new date for the speech.

Top Talkers

— California could become home to the nation’s most sweeping assisted dying policies with a new bill that would allow dementia patients and out-of-state residents to end their lives here. (POLITICO)

— Gavin Newsom on Friday requested a pardon for an award-winning podcaster. (POLITICO)

— Newsom announces rewards for information in unsolved killings of two Orange County residents. (Los Angeles Times)

— Hundreds back magic mushrooms at Oakland psychedelic wellness conference (San Francisco Chronicle)

— The Los Angeles Sheriff's Department flouted a county request for info on an alleged deputy gang, report says. (Los Angeles Times)

AROUND THE STATE

— The Sierra snowpack is "unusually normal," and reservoirs are brimming at end of winter (Mercury News)

— California’s heat-stricken warehouse workers won’t soon be cooled due to holdup in new protections (The Press-Enterprise)

— A top San Diego official largely wants the government to stay out of homeless services. (San Diego Union-Tribune)

— Facing water uncertainties, Fresno County farmers turn to solar for new revenue. (Fresno Bee)

PLAYBOOKERS

SPOTTED — Ron Herrera, deposed former LA labor head, at a Robert F. Kennedy Jr. presidential campaign event in Los Angeles.

TRANSITIONS — Claire Nance Klakring is joining Firehouse Strategies as VP. She was previously comms director for Rep. Michelle Steel (R-Calif.).

— Olivia Wardlaw is now a communications consultant for state Senate President Pro Tem Mike McGuire. She was previously special projects manager for Sen. Alex Padilla.

MEDIA MOVES — Stephen Morris has been appointed San Francisco bureau chief for The Financial Times. He will spearhead its coverage of Silicon Valley and tech.

— Michael Acton is now a San Francisco correspondent for The Times. He will lead coverage of Apple and other hardware companies.

— Cristina Criddle is also now a San Francisco technology correspondent for The Times. She joins the publication’s global AI team and will focus on startups in the sector.

BIRTHDAYS — (was Friday): Rep. Ted Lieu (D-Calif.) … Carina Armenta of Rep. Julia Brownley’s (D-Calif.) office … Mehdi Alhassani of Palantir Technologies ... (was Thursday): Albert Ruddy ... Isaac Larian ... Yotam Solomon

CALIFORNIA POLICY IS ALWAYS CHANGING: Know your next move. From Sacramento to Silicon Valley, POLITICO California Pro provides policy professionals with the in-depth reporting and tools they need to get ahead of policy trends and political developments shaping the Golden State. To learn more about the exclusive insight and analysis this subscriber-only service offers, click here.

Want to make an impact? POLITICO California has a variety of solutions available for partners looking to reach and activate the most influential people in the Golden State. Have a petition you want signed? A cause you’re promoting? Seeking to increase brand awareness amongst this key audience? Share your message with our influential readers to foster engagement and drive action. Contact Jesse Shapiro to find out how: jshapiro@politico.com.

 

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Lara Korte @lara_korte

POLITICO California @politicoca

 

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