TEG is looking to invest in UK venues shuttered by COVID-19 as it ups its ambitions in the European market.
In an interview with the Financial Times, chief executive Geoff Jones outlined the Australasian group’s strategy for expansion in the UK.
The Silver Lake-owned business is reportedly searching for UK music venues with a capacity of between 500-2,500 that have been shuttered by the coronavirus pandemic.
Jones told the FT that he expects that half of TEG’s earnings could eventually be derived from Europe.
Commenting on the potential for the UK market, post-COVID-19, Jones said: “There will be a lot of casualties. Without sounding like a vulture that presents opportunities.”
Jones also gave an update on plans to expand its Ticketek ticketing brand in the UK. Having last year said the launch would come in early 2020, he said this would now happen “when the time is right”.
TEG took a first step in the UK market last year when it purchased Bristol-based promoter MJR and venues including Cardiff’s TramShed and The Mill in Birmingham.
In October last year, TEG was acquired by California and New York-headquartered technology investors Silver Lake, whose other investments include Alibaba Group, Dell Technologies, WME’s parent company Endeavor, and the Madison Square Garden Company. The FT reports that the deal was worth around A$1.4bn ($952m).
TEG recently appointed Matthew Donazzan, who helped broker Silver Lake’s acquisition of TEG while at Goldman Sachs, to the newly created role of director of strategy and M&A. Donazzan is leading the team charged with assisting Jones and the board in determining and executing the global live entertainment, ticketing and technology business’s key strategic projects.
TEG is headquartered in Sydney, Australia and has six offices worldwide. It comprises Ticketek, TEG Live, TEG Dainty, TEG Analytics, TEG Insights, TEG Digital, Softix, Qudos Bank Arena, Eventopia, Life Like Touring, The Entertainment Store, Brickman Exhibitions and TEG Asia.
Ticketek is partnered with many of Australia’s leading venues, leagues and sports teams.
Earlier this week it was announced that in November, 1,000 concerts would take place across 20 nights in New South Wales to help restart the live music industry in the region.
Jones said it remains unclear as to how larger venues might reopen as he said he understands it is not financially viable for concerts to run at lower capacities. He also indicated that he does not believe ticket prices will increase in lieu of lost revenue in the industry.
The Australian government has also detailed potential plans for welcoming crowds of 10,000 to National Rugby League (NRL) games from July. The league kicked off on May 28, with only a small number of fans currently able to attend by clubs using corporate boxes.