A radius clause is a form of
non-compete clause
In contract law, a non-compete clause (often NCC), restrictive covenant, or covenant not to compete (CNC), is a clause under which one party (usually an employee) agrees not to enter into or start a similar profession or trade in competition agains ...
used in the
live music
A concert is a live music performance in front of an audience. The performance may be by a single musician, sometimes then called a recital, or by a musical ensemble, such as an orchestra, choir, or band. Concerts are held in a wide variety an ...
industry, in which a
tour promoter Tour promoters (also known as concert promoters or talent buyers) are the individuals or companies responsible for organizing a live concert tour or special event performance. The tour promoter makes an offer of engagement to a particular artist, ...
stipulates that a performer, for a certain length of time prior to or following an appearance at a concert or
festival
A festival is an event ordinarily celebrated by a community and centering on some characteristic aspect or aspects of that community and its religion or cultures. It is often marked as a local or national holiday, mela, or eid. A festival c ...
, must not hold concerts at other locations within a certain radius of the city where they are to perform. In essence, it gives the promoter a form of territorial exclusivity, ensuring that the performer does not book concerts with competing promoters and venues in nearby areas, which can undermine ticket sales for their main event.
Critics in favor of radius clauses have agreed with their intent to protect the investments of organizers into the production and promotion of music events,
[ and that they are a worthwhile trade-off for acts wanting to obtain the expanded exposure that a festival performance can provide. Others have criticized the concept, arguing that they effectively discourage major acts from performing in smaller cities, and are influenced by a profit-oriented mentality in the live events industry. In 2010, the state of ]Illinois
Illinois ( ) is a U.S. state, state in the Midwestern United States, Midwestern United States. Its largest metropolitan areas include the Chicago metropolitan area, and the Metro East section, of Greater St. Louis. Other smaller metropolita ...
also launched an antitrust
Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust l ...
investigation into the use of radius clauses by Lollapalooza
Lollapalooza (Lolla) is an annual American four-day music festival held in Grant Park in Chicago. It originally started as a touring event in 1991 but several years later made Chicago the permanent location for the annual music festival. Musi ...
.
Effects
Radius clauses contractually ensure that a particular act does not hold events at competing venues or festivals within a certain distance of a city in which they are scheduled to perform, for a length of time prior to and/or after the performance.[ For example, a band booked to perform at a venue in San Francisco may be barred from performing in cities within a radius of San Francisco, for 60 days, before and after the concert. These clauses intend to maximize ticket sales; as an act cannot also perform concerts in smaller, nearby markets, fans in these markets are forced to instead buy tickets for the act in the major market.]
The use of radius clauses has been considered controversial by some venue owners—especially those who own small-market venues in proximity to larger markets, or those in markets with a large number of venues—as they affect their ability to book major acts. In the city of Chicago, radius clauses imposed by the city's major music festival Lollapalooza
Lollapalooza (Lolla) is an annual American four-day music festival held in Grant Park in Chicago. It originally started as a touring event in 1991 but several years later made Chicago the permanent location for the annual music festival. Musi ...
can make it difficult for venues and block parties
A block party or street party is a party in which many members of a single community congregate, either to observe an event of some importance or simply for mutual solidarity and enjoyment. The name comes from the form of the party, which ofte ...
around the city to book major acts during the lucrative summer months. Similar effects are faced by the Greater Los Angeles Area
Greater Los Angeles is the second-largest metropolitan region in the United States with a population of 18.5 million in 2021, encompassing five counties in Southern California extending from Ventura County in the west to San Bernardino Coun ...
in the lead-up to the Coachella Festival
The Coachella Valley Music and Arts Festival (commonly called the Coachella Festival or simply Coachella) is an annual music and arts festival held at the Empire Polo Club in Indio, California, in the Coachella Valley in the Colorado Desert. I ...
, although they are not as pronounced as those of Lollapalooza because their radius clauses fall during the winter months.[
]Dangerbird Records
Dangerbird Records is an independent record label in Los Angeles, California. The label is home to artists from around the world and part of the burgeoning Silver Lake music scene. The label has had international success from its small roster of ...
founder Jeff Castelaz
Jeff Castelaz founded Cast Management and co-founded The Pablove Foundation. He also Co-Founded and was CEO of Los Angeles-based Dangerbird Records, and was the president of Elektra Records.
Career beginnings
Castelaz began working in music in ...
argued that such clauses were a "reality" in the music business, since music festival promoters have to protect their investments in securing acts and promoting their event.[ On the other hand, while noting that festival appearances can be a significant milestone for an up-and-coming act rather than exclusively playing clubs, talent agency head Tom Windish felt that there was a mentality in the live events industry where "if you don't have 75,000 people at your event, it's a failure."][
]
Notable users
Coachella
The Coachella Valley Music and Arts Festival
The Coachella Valley Music and Arts Festival (commonly called the Coachella Festival or simply Coachella) is an annual music and arts festival held at the Empire Polo Club in Indio, California, in the Coachella Valley in the Colorado Desert. ...
uses radius clauses which, as of 2012, could prevent acts from performing in Los Angeles
Los Angeles ( ; es, Los Ángeles, link=no , ), often referred to by its initials L.A., is the largest city in the state of California and the second most populous city in the United States after New York City, as well as one of the world' ...
, the Inland Empire
The Inland Empire (IE) is a metropolitan area and region inland of and adjacent to coastal Southern California, centering around the cities of San Bernardino and Riverside, and bordering Los Angeles County to the west. It includes the cities o ...
, or San Diego
San Diego ( , ; ) is a city on the Pacific Ocean coast of Southern California located immediately adjacent to the Mexico–United States border. With a 2020 population of 1,386,932, it is the List of United States cities by population, eigh ...
for up to three months before and after the festival. The festival has allowed some of its acts to make appearances in the region prior to the festival, but only at events and venues owned or controlled by festival owner Anschutz Entertainment Group
The Anschutz Entertainment Group (AEG), also known as AEG Worldwide, is an American global sporting and music entertainment presenter and a subsidiary of The Anschutz Corporation. It is the world's largest owner of sports teams and sports even ...
(AEG)—such as Jay-Z
Shawn Corey Carter (born December 4, 1969), known professionally as Jay-Z, is an American rapper, record producer, entrepreneur, and founder of Manhattan-based conglomerate talent and entertainment agency Roc Nation. He is regarded as one of ...
at Staples Center
Crypto.com Arena is a multi-purpose indoor arena in Downtown Los Angeles. Adjacent to the L.A. Live development, it is located next to the Los Angeles Convention Center complex along Figueroa Street. The arena opened on October 17, 1999; it was ...
in 2010. That year also marked the first time Coachella had ever sold out in advance.
In 2018, the organizers of the Portland, Oregon
Portland (, ) is a port city in the Pacific Northwest and the largest city in the U.S. state of Oregon. Situated at the confluence of the Willamette and Columbia rivers, Portland is the county seat of Multnomah County, the most populous co ...
Soul'd Out Music Festival filed an antitrust
Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust l ...
lawsuit against AEG, alleging that Coachella had enforced radius clauses much stricter than previously reported. In its original complaint, the organizers stated that the restrictions had extended to the entirety of California
California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...
, as well as Arizona
Arizona ( ; nv, Hoozdo Hahoodzo ; ood, Alĭ ṣonak ) is a state in the Southwestern United States. It is the 6th largest and the 14th most populous of the 50 states. Its capital and largest city is Phoenix. Arizona is part of the Fou ...
, Nevada
Nevada ( ; ) is a U.S. state, state in the Western United States, Western region of the United States. It is bordered by Oregon to the northwest, Idaho to the northeast, California to the west, Arizona to the southeast, and Utah to the east. N ...
, Oregon
Oregon () is a U.S. state, state in the Pacific Northwest region of the Western United States. The Columbia River delineates much of Oregon's northern boundary with Washington (state), Washington, while the Snake River delineates much of it ...
, and Washington
Washington commonly refers to:
* Washington (state), United States
* Washington, D.C., the capital of the United States
** A metonym for the federal government of the United States
** Washington metropolitan area, the metropolitan area centered on ...
. In an amended complaint, the organizers identified that Coachella performers are forbidden from:
* During a period that starts on the December 15 prior to Coachella and ends on the following May 1.
** Playing any festival in North America
** Playing any "hard ticket" concerts in Southern California
* Publicizing any tour stops in California, Arizona, Oregon, or Washington until after the Coachella lineup is announced.
* Publicizing any performances at competing festivals in California, its bordering states, and Washington, or a headlining concert in Southern California, until May 8.
* Publicizing any performances at competing festivals in the remainder of the United States (except for the New Orleans Jazz & Heritage Festival
The New Orleans Jazz & Heritage Festival (commonly called Jazz Fest or Jazzfest) is an annual celebration of local music and culture held at the Fair Grounds Race Course in New Orleans, Louisiana. Jazz Fest attracts thousands of visitors to New ...
, South by Southwest
South by Southwest, abbreviated as SXSW and colloquially referred to as South By, is an annual conglomeration of parallel film, interactive media, and music festivals and Convention (meeting), conferences organized jointly that take place in m ...
, and Ultra Music Festival
Ultra Music Festival (UMF) is an annual outdoor electronic music festival that takes place during March in Miami, Florida, United States. The festival was founded in 1999 by Russell Faibisch and Alex Omes.
It was first held on Miami Beach, bu ...
) until after the Coachella lineup is announced. With respect to Nevada, they can publicize appearances at Las Vegas casinos, or tour stops in other parts of Nevada, but cannot publicize Las Vegas festival appearances.
Other events
In April 2010, it was reported that Illinois Attorney General
The Illinois Attorney General is the highest legal officer of the state of Illinois in the United States. Originally an appointed office, it is now an office filled by statewide election. Based in Chicago and Springfield, Illinois, the attorney ...
Lisa Madigan
Lisa Murray Madigan (born July 30, 1966) is an American lawyer and politician. A member of the Democratic Party, she served as Attorney General of the U.S. state of Illinois from 2003 to 2019, being the first woman to hold that position. She is t ...
had launched an antitrust investigation into the Lollapalooza
Lollapalooza (Lolla) is an annual American four-day music festival held in Grant Park in Chicago. It originally started as a touring event in 1991 but several years later made Chicago the permanent location for the annual music festival. Musi ...
festival's use of radius clauses.[ It was alleged that the festival had imposed radius clauses on performers that were so strict, that some acts were barred from performing within of Chicago—including cities as far as ]Detroit
Detroit ( , ; , ) is the largest city in the U.S. state of Michigan. It is also the largest U.S. city on the United States–Canada border, and the seat of government of Wayne County. The City of Detroit had a population of 639,111 at th ...
, Indianapolis
Indianapolis (), colloquially known as Indy, is the state capital and most populous city of the U.S. state of Indiana and the seat of Marion County. According to the U.S. Census Bureau, the consolidated population of Indianapolis and Marion ...
, and Milwaukee
Milwaukee ( ), officially the City of Milwaukee, is both the most populous and most densely populated city in the U.S. state of Wisconsin and the county seat of Milwaukee County. With a population of 577,222 at the 2020 census, Milwaukee is ...
—for as long as six months prior to, and three months after Lollapalooza.
In June 2014, the Toronto
Toronto ( ; or ) is the capital city of the Canadian province of Ontario. With a recorded population of 2,794,356 in 2021, it is the most populous city in Canada and the fourth most populous city in North America. The city is the ancho ...
festival NXNE
North by Northeast (or NXNE) is an annual music and arts festival held each June in Toronto, Ontario, Canada. The festival's main focus is live music, but it also includes an eSports gaming tournament, comedy, a conversations series, a flea marke ...
announced that it would drop a 45-day radius clause it had implemented for its 2014 edition, following protests by fans and artists (including a Change.org
Change.org is a worldwide nonprofit petition website, based in California, US, operated by the San Francisco-based company of the same name, which has over 400 million users and offers the public the ability to promote the petitions they care abo ...
petition with over 3000 signatures), with a particular emphasis on its effects on emerging artists. NXNE 2014 marked the first time that it had been held just weeks after Canadian Music Week
Canadian Music Week (or CMW) is an industry conference and music festival held over ten days in Toronto and Ontario, Canada.
History
Canadian Music Week began in 1981 and has grown to become one of Canada's largest and most influential media a ...
(CMW)—which had moved to May from its traditional March date; the clause had been implemented primarily to prevent NXNE acts from performing at CMW.
In 2017, South By Southwest
South by Southwest, abbreviated as SXSW and colloquially referred to as South By, is an annual conglomeration of parallel film, interactive media, and music festivals and Convention (meeting), conferences organized jointly that take place in m ...
(SXSW) was the subject of criticism for several controversial clauses in its performance contracts, including one warning that international performers entering the United States under the Visa Waiver Program
The Visa Waiver Program (VWP) is a program of the United States federal government that allows nationals of specific countries to travel to the U.S. for tourism, business, or while in transit for up to 90 days without having to obtain a visa. It ...
to perform at SXSW would face threats of deportation and passport revocation if they performed outside of their "official" events (a large number of parties unaffiliated with SXSW are held in Austin
Austin is the capital city of the U.S. state of Texas, as well as the seat and largest city of Travis County, with portions extending into Hays and Williamson counties. Incorporated on December 27, 1839, it is the 11th-most-populous city ...
alongside the official festival). Managing director Roland Swenson stated that this clause was based on U.S. immigration law; performing in the country requires a work visa, but SXSW performers have typically qualified under the Visa Waiver Program because it classifies itself as an "industry showcase". Those who do perform under this clause are legally forbidden from performing any shows beyond the specific showcase they have been granted permission for. Some critics initially interpreted this statement as being a traditional radius clause.
References
{{reflist, 30em
Anti-competitive practices
Business terms
Music industry