The hidden cost of a privately funded Brisbane Arena

Of all the announcements to come out of the 100-day review into Olympic infrastructure, one I found surprising was the state government’s decision not to include Brisbane Arena in plans for the 2032 Games.

The reaction was muted, perhaps overshadowed by glossy renders of Victoria Park, or tempered by assurances from Premier David Crisafulli that we will still get a new indoor entertainment centre – just a privately funded one in Woolloongabba.

Some looked for a silver lining. Night-Life Economy Commissioner John “JC” Collins said it was disappointing that Brisbane Arena wasn’t going ahead as first proposed, but “the concept of a private-public partnership to develop the entertainment precinct at Woolloongabba is a great outcome”.

Brisbane Arena was pitched to retire Boondall’s entertainment centre for major artists such as Dua Lipa (pictured) who have skipped the city during recent tours. Credit: Rick Clifford

Crisafulli said he had already seen private sector offers to build the arena, and was planning to “proceed immediately with a market-led proposal”. A spokesperson declined to reveal who had made the offers, citing the need to “ensure competitive tension through the process”.

Private investment isn’t necessarily a bad outcome, but I wonder what’s been left out of the detail.

US-based Oak View Group, with the backing of entertainment giant Live Nation, expressed interest in building and operating the arena in 2022. Last week, Live Nation released a statement welcoming the announcement and “the opportunity to partner with the government to ensure its delivery”. They look a sure contender, but if they get their wish, what would it mean for Brisbane’s live music industry?

We already know live music is struggling nationally. We’ve lost festivals like Splendour in the Grass and Bluesfest, and seen venues such as The Zoo shut their doors. Last year, a Four Corners report put Live Nation squarely in the middle of this crisis.

As the world’s largest live entertainment corporation, it owns leading ticketing company Ticketmaster and has bought up other sections of the live music supply chain – venues, festival management companies, and artist management – to build its reach. It’s a strategy called vertical integration.

Four Corners accused Live Nation of charging consumers hidden fees, maximising profits at the expense of artists and consumers, and “misusing” its market power. The group pushed back on the claims, but its influence is hard to deny.

Paul Sloan, managing director of booking agency Supersonic Australasia, has been outspoken about how giant corporations, including Live Nation, are influencing Australia’s music scene.

An artist’s impression of Brisbane Arena at its original Roma Street site. The government has now proposed a new site in Woolloongabba, across from the soon-to-be demolished Gabba.

He doesn’t believe governments should give exclusive rights for cultural and recreational spaces to multinationals, who he says have “no obligation or regulation ensuring they operate in the best interests of Australian consumers or artists”.

“Giving Live Nation exclusive rights to an arena building with no competition in a major city is simply giving [a] global corporation the rights to introduce an unavoidable and perpetual tax on Queenslanders who will ever use that venue,” Sloan said.

Since the growth of corporations like Live Nation, Sloan says we’ve already seen dramatic increases in fees and concert prices in Australia.

These changes have a ripple effect on small businesses that are already fighting against the slow creep of COVID debt, inflation and alcohol tax rises. These pressures influenced The Zoo’s closure and are bearing down on independent venues that support local music, such as Can You Keep A Secret (near the newly proposed arena site) and The Bearded Lady in West End.

The Bearded Lady’s owner, Jamie Simmonds, is not against a new entertainment venue on his side of the river; he says they’re up against circumstances broadly affecting the arts and hospitality sector that need government intervention and systematic change.

But the playing field is obviously weighted against small, independent venues like his.

“Small businesses can’t get away with certain things that bigger businesses can,” he says. “If we have one bad week, it’s a real slide.”

And while stadium shows aren’t their competition, the changing nature of the industry is felt at their level. “We have people come in and say, ‘I’d love to have been here [to see a band] last week, but we spent all our money on this other ticket’.”

A few weeks ago, I saw five acts in three days: one at Fortitude Music Hall and the other two at Riverstage – two venues with links to Live Nation. It cost me $300 on tickets alone – before Ubers, dinners and drinks – a blowout that has parked my going-out budget for a month or two.

Last week fired a considerable gun on getting Olympic infrastructure under way. With seven years left, time is of the essence. Given how the live music industry has changed in the five years since COVID, there’s anxiety around where the industry might be by the time the Games arrive.

We can’t afford to lose the venues that support local artists and make up the fabric of the city. If the state government awards Brisbane Arena to Live Nation, we need to have a frank conversation about the broader implications for our live music industry.

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