Virtual events help revive fortunes of proposed operator of Cork's events centre

Reversal in fortunes could potentially bolster Live Nation's commitment to the Leeside project

The upturn in Live Nation's fortunes, as well as a potential payout from a successful court case against its insurer, could bolster its commitment to Cork's events centre which is to be built on the banks of the Lee on South Main St. Picture: Denis Minihane 

The proposed operator of Cork's long-awaited events centre is seeing a significant revival in its fortunes after the Covid-19 pandemic decimated its business, potentially bolstering its commitment to the Leeside project.

Global events promoter Live Nation, which owns Ticketmaster, saw its share price plummet in the months after the pandemic began, with thousands of concerts and events postponed or cancelled.

The Californian-headquartered firm, which has been lined up to invest in and run the 6,000-capacity venue in Cork once built, saw revenues fall 98% by August, as well as 2,000 staff furloughed. More than 5,000 events were cancelled, with a further 6,000 pushed into 2021. It lost more than 80% of year-on-year revenue overall during the first nine months. 

Live Nation's stock fell from more than $75 (€62) a share before the onset of the pandemic to under $30 at its lowest point in mid-March. The company's fortunes looked precarious as the pandemic raged on, with billions lost in revenue as concerts all over the world showed no sign of coming back.

However, an upturn in fortunes has since gathered pace as consumers discovered their appreciation for virtual events, drive-in shows, and at-home music hubs. Its stock has rebounded to pre-pandemic levels, to leave the company valued at more than $16bn, and analysts bullish about its future.

Live Nation is also attempting to recoup its losses by suing its insurer for not paying out for cancelled events after the Covid-19 crisis began.

A lawsuit filed in the US District Court for the Central District of California claims that it was reasonable to believe that Factory Mutual Insurance Company would cover its losses sustained during the pandemic.

While completely differing legal jurisdictions, the case has similarities to the one taken by Irish publicans against insurers FBD. 

In that case, the High Court ruled that four pub owners are entitled to compensation from the insurance firm for losses sustained due to the pandemic.

Cork City Council CEO Ann Doherty said all parties — the city, builders BAM, and Live Nation Gaiety — were intent on bringing the crucial funding agreement to 'as close a point as possible to where it can be signed off once revenue streams are restored'. Picture: Tomas Tyner, UCC.

The upturn in Live Nation's fortunes, as well as a potential payout from a successful court case against its insurer, could mean its plans for regional cities across the world come back into focus.

Having been described as the cog that will turn the wheel on the long drawn-out Cork events centre saga, Live Nation's commitment to the project is seen as crucial if it is to finally happen.

Cork City Council chief executive Ann Doherty said in December that everyone involved was still committed to the project.

Meetings between Cork City Council, BAM and Live Nation Gaiety (LNG) were ongoing, she said.

“All parties including the Government of Ireland recently reaffirmed their commitment to deliver this project. At present, roadmaps aren’t in place for the reopening of the global live entertainment industry as we continue to live with Covid-19.

“Despite this uncertainty, the parties continue to progress the project. All parties are intent on bringing the funding agreement [which dictates the terms on which Government support is granted] to as close a point as possible to where it can be signed off once revenue streams are restored in the events industry," Ms Doherty said.

The events centre, at the former Beamish & Crawford brewery site, has €50m of State money involved.