XM MLB Chat: No revenue sharing-rock concerts in MLB stadiums don't have to pay

Mets, Phillies, Red Sox, Cubs, and Nationals ballparks hosted concerts:

"Concerts at MLB stadiums this summer, led by pop superstar Paul McCartney and the touring tandem of Elton John and Billy Joel, resulted in sellouts and

windfall paydays for the Mets, Phillies and Red Sox.

Not only is the concert revenue welcome at a time when everyone in sports is battling the effects of the recession, but MLB clubs do not have to share their portion of concert revenue with other teams.

The three teams struck traditional rent deals with promoters,

rather than promoting the concerts themselves, as a few organizations have begun to do.

Under the rental arrangement, the acts take most of the ticket revenue, and

the teams make their money on ticket fees, concessions and parking.

Aramark's food, beverage and retail per caps average $20 to $23 for concerts at Citizens Bank Park and Fenway Park, team officials said.

In New York, Aramark's per caps exceeded $27 for three McCartney shows at Citi Field, the new ballpark's first concerts. Fan spending on concessions was comparable to a Mets game, said Dave Howard, the Mets' executive vice president of business operations. With a top ticket price of $275, the former Beatle grossed $12.8 million in ticket sales with 108,000 in attendance, Howard said.

The Mets privately built and operate their new ballpark, and exercised their option to add a

third McCartney date on a Tuesday after a pair of weekend performances sold out.

"The benefit we have is that we are now a one-stop shop for concerts," Howard said.

"At Shea Stadium, we had to negotiate with the city on rent.
We are now the sole negotiator for the venue, which allows us to fashion a deal in a number of ways."

At Citizens Bank Park, two Elton John/Billy Joel performances generated more than $11.8 million with total attendance of 89,690, Billboard Boxscore reported. The ballpark also has played host to Jimmy Buffett (twice in 2005 and also in 2008), Bon Jovi (2006) and The Police (2007).

"I would say they were two of the more profitable shows we've had," said John Nickolas, vice president and chief financial officer for the Phillies. "The key is to sell the place out, and we probably set a record for the most people in the house compared with the (five other) shows we've had the past four years," Nickolas said.

The Phillies also share concert revenue with Global Spectrum, their next-door neighbor at Wachovia Center that helps the team operate the park;

owns New Era Tickets, the system the Phillies use to sell concert tickets;

and books the acts through Live Nation promoter Larry Magid.

The club's deal with Global Spectrum prohibited Nickolas from disclosing the revenue splits between the two parties.

In Boston, where Fenway Park had a record five concerts this baseball season, two McCartney shows in August grossed about $7.7 million with 68,626 in attendance, Live Nation officials reported.

Those dates followed Fenway's two Dave Matthews Band dates and one Phish show in May. Combined, those three concerts grossed more than $6.5 million in ticket sales.

The Red Sox and promoters negotiate a separate charge, usually $5, on top of the ticket price that the team uses as a "restoration fee" to ensure Fenway's field is put back in the same condition it was in prior to the shows, said Larry Cancro, senior vice president of Fenway affairs. That money can be used for ballpark renovations, Cancro said.

Although local residents are split in their opinions over whether concerts at Fenway are good for the neighborhood, nearby bars and restaurants get a huge boost in business, Cancro said.

For them, McCartney's shows produced the two biggest nights of the year in revenue....

McCartney could return to play a few more ballparks in 2010, said Barrie Marshall, his longtime manager who was particularly impressed with Citi Field's amenities. The Phillies, Red Sox and Mets already are talking to agents and managers about next year's possibilities, team officials said.

The Elton John/Billy Joel tour also hit ballparks in Chicago and Washington, D.C.

In Chicago, two shows at Wrigley Field grossed $11.1 million with 77,000-plus in attendance, according to Billboard Boxscore. The Cubs, who own and operate the stadium, declined to comment.

In Washington, Nationals Park had one Elton John/Billy Joel date, its first concert since the facility opened in 2008. Team President Stan Kasten wouldn't discuss ticket revenue but said the team would like to book more shows in 2010."