Los Angeles Music Scene: Marc Geiger (formerly of William Morris Endeavor) and $75M

The Satellite

I previously reported that the Live Music Society is providing grants between $10,000 to $50,000 for venues that have capacities below 250.

Per the New York Times (Oct 28), it now looks like there is an effort underway that will focus on larger  independent venues: 

Marc Geiger, the former global music chief of the giant talent agency WME, has quietly amassed a war chest to fortify empty clubs during the pandemic and help them grow once they reopen. One of the most charismatic figures behind the scenes of the music industry — a motormouth futurist who helped create Lollapalooza and was an early proponent of how the internet could help musicians — Geiger portrays his latest venture as a kind of personal crusade.

. . . His plan for SaveLive is to invest in dozens of clubs around the country — buying at least 51 percent of the equity in those businesses — and help them expand into regional forces once concerts return at full steam, which he does not expect until 2022 or later. SaveLive has secured $75 million in available capital from an initial investment round, Geiger said, and is already negotiating with a number of venues around the country.

“The hope here is to create a network effect,” Geiger said. 

He definitely knows how to create music festivals. I wonder if he has the skill sets to manage venues across the country. As it looks like he wants to create a network of venues for tours, I suspect he isn't targeting venues like The Hotel Café (200 capacity) and Zebulon (300 capacity), maybe not even the Bootleg Theater (500 capacity - theatre). I suspect he is looking at larger and perhaps more historical venues such as The Glass House (800 capacity), 1720 (700 capacity) The Teragram Ballroom (625 capacity), and The Troubadour (500 capacity). (I am listing those venues as I don't think any of them are aligned with Live Nation or AEG. If I am wrong, then scratch those specific venues.)  

Also want to highlight the fact that the assumption he's using is that concerts won't return until 2022 or later. 

The New York Times adds the most obvious complaint. 

“Geiger’s solution on some level scares me,” said Frank Riley of High Road Touring, an indie stalwart who books artists like Wilco, My Bloody Valentine and Robert Plant. “He is going to buy distressed properties for money on the dollar and end up owning 51 percent of their business. Is that independent? I don’t know. But it does save the platforms on which things grow and where artists are sustained.”

Just glancing at their roster, High Road Touring helps Los Angeles musicians/bands such as A.O. Gerber, L.A. Witch, Milo Greene and The Paranoyds.

Now there is no doubt that Marc Geiger has a love of the music industry, but why might he be making this move now? LA Times (Jun 26) reports:

Marc Geiger, a partner and worldwide head of music for William Morris Endeavor, has left the Beverly Hills talent agency as the entertainment industry continues to grapple with the suspension of concerts due to the coronavirus outbreak.

Geiger’s exit is one of several changes in WME’s music department. Sara Newkirk Simon, co-head of the department, will be moving to a consulting role at parent company Endeavor. The department will now be led by Scott Clayton, Lucy Dickins and Kirk Sommer. The agency’s music roster includes artists like Justin Timberlake and Bruno Mars.

He has some time on his hands. 

I suspect he's hoping to build this into a network that at some point will challenge Live Nation and AEG. Obviously, if my speculation about his venue targets in Los Angeles are correct, Live Nation and AEG has nothing to worry about at the moment. On the other hand, Live Nation took on $1.2 billion in debt recently. It is possible they might need to sell off certain properties and Geiger might be able to get some deals (would need more than $75 million, but could raise more from investors).