EAST RUTHERFORD — The New Jersey Sports and Exposition Authority kicked back millions of dollars to the nation's largest music promoters over the last five years in an effort to lure top acts to the Meadowlands.

Details of the deals were revealed only after state courts forced the authority to release hundreds of contracts signed with performers ranging from Britney Spears to Jay-Z. The orders came because of a legal battle by The Star-Ledger to examine the now-public documents.

The contracts themselves spelled out a litany of special terms and accommodations for big grossing concerts like Bruce Springsteen and family shows like The Wiggles. They cast a new light on the highly competitive and secretive industry where no one talks about deals that have been cut.

The confidential rebate agreements represented more than $3.3 million in never-disclosed give-backs to promoters over a five-year period, and do not appear on any financial settlement sheets that give performers an accounting of a show.

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Most of the money went to Live Nation, the biggest concert promoter in the United States, which received $2.9 million in rebates on its rental expenses since 2007 — including more than $830,000 last year alone for concerts at the Izod Center in East Rutherford, the authority reported. That amount came off total arena event income of $22 million.

Live Nation spokeswoman Liz Morentin declined comment.

Richard Barnet, co-author of "This Business of Concert Promotion and Touring" and a professor at Middle Tennessee State University, said the Live Nation deal was indicative of the significant power now wielded by the company.

"They call it rebates. I call it kickbacks," he said.

Barnet said Live Nation buys an entire tour, giving the company a lot of power in negotiations, allowing the promoter to dictate terms of the deal or threaten to go to another city.

There is nothing illegal about the rebates, which have become widespread in the industry.

Ron VanDeVeen, who books the Izod Center for the sports authority, said the incentive program grew out of efforts by Live Nation to enter into co-promotion deals with venues to cut its risk. The proposal called for venues to pick up half the costs of a show, in exchange for a cut of the gate.

"We’re a state agency. We did not want to take that risk," VanDeVeen said.

Instead, he said, a deal was reached in which the authority would rebate money to the promoter on a sliding scale, based on how many concerts Live Nation brought to the Meadowlands. More concerts means a higher per-ticket rebate.

James Minish, the sports authority’s executive vice president, said the program has been very successful for Izod. "It’s given us more shows," he said.

Under its agreement with the authority, Live Nation receives a $4- to $6-a-ticket rebate for each concert booked into the Izod Center. In exchange, the promoter agreed to "priority scheduling rights" for certain Live Nation concerts.

A spokesman for the authority said there were incentive programs negotiated with both Live Nation and AEG Live, the country’s second largest promoter. AEG, which received $265,000 in rebates over three years, was given a rebate of 50 cents to $1 on a portion of the facility fee, according to the spokesman. AEG now books for the Prudential Center in Newark and the Izod agreement has since lapsed. AEG did not return calls for comment.

Two other smaller promoters also received give-backs of the facility fee, the authority reported.

John Scher, CEO of Metropolitan Talent in New York and a long-time Jersey promoter, was surprised at how much Live Nation was getting from the sports authority.

"Strong-arming is alive and well," said the often outspoken Scher, who brings his own shows to the Meadowlands and has received incentive payments as well from the authority. However, the amount of money Live Nation was getting under its agreement with the sports authority was surprising to Scher, who only received $1 a ticket off the facility charge.

"At the end of the day, it all comes out to more money for the presenter; less money for the Sports Authority," he said.

According the Scher, rebates have become common in the business. Even the circus, he said, plays the game, insisting on a take of the concessions before it will book an arena.

"You want Ringling Brothers, we get the Sno-Cones. If you don’t want it, we won’t play there," he said. "And I’ve seen the circus go head-on and just not play (certain) arenas."

In fact, an addendum to a Ringling Brothers contract with the sports authority from 2007, which extends to circus and ice shows through 2012, gives Ringling sole and exclusive right to sell Sno-Cones, cotton candy, popcorn and s’mores.

The contracts examined by The Star-Ledger showed the authority typically charged $80,000 plus expenses to rent the Izod Center in East Rutherford — a number that would float up or down based on the kind of event being hosted, the promoter, or the expected draw of the act. The authority also received a $3.50 facility charge per ticket.

The artist typically took all of the gate, except in cases where the authority took a share of a show. In nearly all cases, the authority retained all parking revenues, and usually concession revenues as well.

"We’ve never lost money on a concert," Minish said.

According to authority officials, the arena has not lost money since 2006, and preliminary estimates show a $2.2 million profit for 2011. The entire Sports and Exhibition Authority, however, is deep in the red because of heavy losses in horse racing and the disappearance of revenue from Giants Stadium.

Several of the contracts showed special accommodations were made to sign some performers.

PLETHORA OF PERKS

Springsteen’s 2009 Working on a Dream Tour, for example, called for a fleet of passenger vans and crew luggage vans, along with a requirement for a six-passenger limo "for the ‘Big Man,’" referring to the late Clarence Clemons. The backstage food and beverage requirements were redacted under the judges’ order — 12 pages worth.

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Springsteen’s shows were promoted by the authority itself — which did not charge itself a rental fee to lease the Izod arena, but it benefited from an almost guaranteed sell-out that generates parking and concession revenues.

The Smuckers Stars on Ice show in April 2011 had a "event exclusivity clause" that limited the show’s engagements at venues within 30-mile radius.

Christina Aguilera insisted on having a doctor in the house.

The sports authority waged a costly legal battle with The Star-Ledger over nearly three years to keep its contracts secret, in one of the longest-ever fights over the release of public records in New Jersey.

The contracts were first sought by the newspaper in March 2009 as part of an examination of the finances of the financially ailing Meadowlands Sports Complex.

But the authority, which still oversees the Izod Center and operated Giants Stadium before it was torn down, insisted its deals were not subject to the state’s public records laws. In court filings, the authority argued that release of the details of its contracts with promoters would put it at a competitive disadvantage against other entertainment venues vying for the same acts.

The agency also said publication of such details would discourage major entertainers from performing at Izod.

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After the newspaper filed suit, Superior Court Judge Claude M. Coleman ordered the contracts be released, finding the "public’s right to know was paramount" in a ruling that said the sports authority had violated the state’s open records statute.

THE PUBLIC DOMAIN

The newspaper, which was represented by Keith Miller of the Newark law firm of Robinson, Wettre and Miller, argued the state had no legal authority to withhold contractual information from public disclosure.

The authority appealed to the appellate division, saying that the public’s interest was served by maintaining the confidentiality of its entertainment deals so that its venues could remain "competitive in the market and continue to generate profits for the state."

The judges late last year rejected the argument.

"The agreements are contracts for lease of a state-owned facility," said the panel, in a unanimous opinion. "The fact the leases involve well-known entertainers will not shroud them in confidentiality."

By Ted Sherman and Peggy McGlone/The Star-Ledger

PERFORMANCE CONTRACTS

Below are more than 3,200 pages of NJSEA contracts from 2007 to 2011. Click on each act, listed on the right side of the window, to view details of the contract. Use the zoom bar in the upper-right corner to view documents more clearly.

Related coverage:

• N.J. Sports and Exposition Authority releases hundreds of performer contracts, under court order

