HeadlinesBriefing favicon HeadlinesBriefing.com

Broadway Antitrust Probe Ends Without Prosecution

New York Times Top Stories •
×

The Justice Department has closed its criminal investigation into Broadway Across America without filing charges, resolving a probe into possible anticompetitive practices in the theatrical touring market. The investigation centered on a 2017 agreement between Broadway Across America and ATG Entertainment that restricted where the British company could present certain Broadway shows in 44 cities where Broadway Across America operated venues.

According to the resolution posted on the agency's website, the two companies agreed to delete the restrictive language from their contract in 2022. The arrangement involved Broadway Across America continuing to present shows at the Majestic Theater in San Antonio, which ATG had acquired in 2015 through its purchase of Ace Theatrical Group. Broadway Across America, a subsidiary of the John Gore Organization, operates venues in dozens of North American markets and is a major player in commercial theater.

The Justice Department cited "good-faith legal advice" from outside counsel as a factor in its decision not to prosecute, though it characterized that advice as "clearly erroneous." Broadway Across America must now implement an enhanced antitrust compliance program. The resolution comes amid heightened scrutiny of competition in entertainment, following the department's recent tentative settlement with Live Nation over music industry practices. The Broadway touring market generated $1.3 billion in launch and operating costs during the 2023-24 season, according to industry data.