When the Los Angeles trio Haim depart the stage at London’s All Points East on Monday night, the end of their headline show will mark the close of another busy festival season for Anschutz Entertainment Group, the sports and music giant behind thousands of venues, shows and festivals.
Its promotions division, AEG Presents, has recently put on Bruce Springsteen, Pet Shop Boys and N-Dubz. Behind these touring shows, its UK boss Steve Homer is pulling the strings, leading a team of promoters intent on landing the hottest acts capable of raking in huge sums, as consumers brush off inflation-squeezed budgets, with research suggesting many are spending more than they can afford to attend shows.
Homer has witnessed the trend first-hand: “With the big shows, people really want to go and experience these artists and will pay almost whatever it takes … where they can’t afford a holiday, or to refit the kitchen, they want something light in the calendar – the impact of the cost of living crisis is not as dramatic on entertainment as other industries.”
However, he adds: “Some perennial acts that tour more frequently have seen a slight dip as people say: ‘I’ll give it a miss this year.’”
The eye-watering ticket prices for sought-after gigs are carefully considered, he says, noting that the company’s margin is between 5% and 10%. Inflation in everything from transport to lighting, and venues that now charge an energy levy have pushed up the cost of staging concerts. Homer says big acts – from Coldplay to Harry Styles – examine each other’s pricing. “Artists always look at comparable prices. No one wants to sit as an outlier – people don’t want to be the most expensive show out there.”
So should fans expect more of the dynamic pricing where ticket prices fluctuate according to demand, akin to the airline industry? “In America, it’s far more prevalent. We’re a lot more cautious about adopting it here. No one really says: ‘How much did you pay for your seat?’ when you sit down on a plane, but as you’re sitting in a concert or a theatre it becomes a topic.” AEG used dynamic pricing at Diana Ross’s gigs last year, but will not for this October’s shows at the Royal Albert Hall, Homer says.
The stadium gigs he is responsible for are a far cry from Homer’s first forays into gig promotion, working for Sheffield University, where he put on Blur, Happy Mondays and Nirvana. As a drummer, the enterprising Homer even sold a hurried Dave Grohl part of his kit when he returned to the Steel City with Foo Fighters.
These days, artists’ requests can vary from asking the crew not to make eye contact as they walk to the stage, to demanding that everything in a dressing room – beer bottles included – is black and white. “It’s ludicrous,” Homer laughs. “It may be genuine or they’re just seeing how far you’ll go for them.”
After Sheffield, he joined promoter Mean Fiddler, putting on Eminem’s first UK shows and then spent 16 years at Ticketmaster owner Live Nation, the industry’s biggest player.
Homer hopes to grow AEG Presents to slot in behind his former employer as the second-largest promoter as he rebuilds momentum post-Covid-19. During the pandemic, revenues that had reliably been about £140m a year were eviscerated. In its last publicly available accounts, for lockdown-hit 2021, revenues had begun to recover at £39m and losses were flat at just over £4m. The industry had expected a surge back to gigs post-pandemic that didn’t fully materialise, and he says touring patterns are only just returning to normal.
The wider AEG parent group takes its name from its owner, Philip Anschutz, known as “America’s most reclusive billionaire”. Worth an estimated $10.7bn (£8.5bn), he made his money in oil and railroads before entering entertainment with events such as Coachella, North America’s largest annual festival. Homer sees him twice a year, and says the tycoon has a “soft spot” for AEG’s British Summer Time gigs in Hyde Park and shows at the Eden Project, the Cornish ecological tourist attraction.
Homer also has responsibility for a portfolio of non-arena venues, including Hammersmith Apollo and indigo at the O2 arena in London. He presided over the recent reopening of the Halls in Wolverhampton – where he saw his first gig (the Clash) in the 1970s – and landed Blur for the relaunch. Two further openings, in Watford and Olympia, west London, are coming down the track. Although the “toilet circuit” of small grassroots venues is under threat, Homer says larger ones between 1,400 and 4,000 capacity remain attractive, and there is a “competitive market” to snap them up.
That competition remains depleted by the closure of Brixton O2 Academy. The south London venue was shut down after two deaths when ticketless fans tried to force their way into a gig by Afrobeats musician Asake last December. Homer’s team last week staged the Nigerian artist’s underwhelming return to London, at the O2 arena. A video paying tribute to the victims was played, while police canvassed gig-goers as part of their investigation. “It’s devastating when things like that happen,” says Homer, adding that the O2 gig had been “emotional” and that extra security measures had caught some fans with fraudulent tickets.
Meanwhile, the comedy division he launched is fast diversifying. The post-Peter Kay era circuit has comedians filling arenas nationwide, providing steady revenues. It’s not without risk. Father Ted creator Graham Linehan’s difficulties finding a venue at the Edinburgh fringe underscore how cancel culture can hit live shows. “It is a bit of a minefield, but we have to be very aware of it [as promoters] and respond to it. You have to take a neutral stance – you can’t alienate people.”
There are also AEG’s podcast live shows, including Alastair Campbell and Rory Stewart’s The Rest Is Politics (from Gary Lineker’s Goalhanger stable) and a Dungeons & Dragons event at Wembley Arena. “It sold out in under an hour, absolutely phenomenal. I’ll hold my hands up and say I’ve never played Dungeons & Dragons,” Homer says. So how does he relax? “I go to quite a few shows, it’s still my hobby. It’s nice to go and not have any responsibility.”
CV
Age “Fast approaching six zero.”
Family “Two daughters, a wife, two cats and an ex-wife.”
Education “University of Leicester where I got a 2.2 as it was all downhill when I found music.”
Pay Undisclosed. “I think I work hard for what I get.”
Last holiday Cornwall after lockdown.
Best advice he’s been given “By my dad, who said get a proper job. And that there is always a deal for every act but the trick is getting them to agree to it.”
Word he overuses “Recently ‘so’ for some strange reason. It drives me mad so it must really annoy people.”
How he relaxes Watching Wolves play football “which is not at all relaxing but different”.
