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Speaking at ILMC 29, Paul McGuinness reflected on U2's "military"-precision early touring career and described how their 1992–93 tour revolutionised the live industry
By Jon Chapple on 13 Mar 2017
Former U2 manager Paul McGuinness has spoken of the significant role he and the band played in the emergence of major multinational promoters such as Live Nation and AEG Live/Presents.
Interviewed by Ed Bicknell for the ILMC 29 Breakfast Meeting, McGuinness related how U2’s 1992–93 Zoo TV world tour indirectly laid the foundations for the rise of Live Nation et al. Describing the tour production as “extraordinary – but bank-breaking”, he said U2 were then “still operating like a punk band, with low ticket prices. If one of the promoters on that tour hadn’t paid, we’d have been ruined.”
“At the end of that tour – which made no money – I said we’d never do it again,” he continued. “I had to tell [then-agents] Ian Flooks and Frank Barsalona that I wasn’t going to use them anymore. That was quite an event…
“I decided the next tour was going to be underwritten by a single promoter. We worked with Arthur Fogel and Michael Cohl – that deal became SFX, then Clear Channel and now Live Nation.”
The interview, as is tradition, took place on the final morning of ILMC, following the previous evening’s Gala Dinner and Arthur Awards (see the winners here).
Bicknell began by asking how much of a role luck has played in McGuinness’s long career. McGuinness highlighted luck as one of the four key qualities needed in a manager – along with talent, stamina and ambition – and related an anecdote about Napoleon’s choice of marshals: “He said, most of all, they have to be lucky. Luck has an enormous amount to do with success in popular music.”
“U2 always understood they had two parallel careers: one in live and one in recording”
Reflecting on his pre-U2 management career, McGuinness said his first gig was for a Celtic rock band (a “poor man’s Horslips”) called Spud. “I managed to get them a record deal, and we did a little bit of touring, mostly in Germany and Sweden,” he explained. Spud, however, had “wives and responsibilities” and were loath to buy anything for the band – even guitar strings – feeling they were committed elsewhere. McGuinness said he thought they were “too old to make it” and resolved that “the next band I manage is going to be younger than that.”
Introduced to U2 by late rock critic Bill Graham, McGuinness said band and manager’s famous five-way royalty split was established from the outset. “I used to read about Brian Epstein, Andrew [Loog] Oldham… in the groups I was interested in there was an officer class and then the soldiers,” he explained. “In the Rolling Stones you had Mick and Keith and then everyone else; in The Beatles it was John and Paul, and then George and Ringo. That’s what broke up those groups.
“So, I said to U2: ‘There isn’t going to be any money for a while, so what there is you should split equally. And since there’s four of you and one of me, why don’t we split everything five ways?’”
On U2’s early touring career, McGuinness outlined how important the band’s live act was to establishing their reputation at a time when their records weren’t selling. “U2 always understood they had two parallel careers: one in live and one in recording,” he said. “We weren’t successful [with the latter] in the beginning – the first two records didn’t perform well, and there was the constant threat of being dropped.
“Only with the third album [War] did we have success on record. By then we were known across America, Europe… we had a very military style: we targeted each country one by one and tried to build ourselves in each at the same speed.”
“In the early ’80s,” he continued, “we’d do three months in the US in one go every year. That meant playing in as many cities as possible – and major cities twice each, so you’d hopefully see progress from a club to an auditorium [when you returned].
“Everyone liked the idea of touring an in-the-round stadium production, but it took a lot of money and imagination to turn it into a reality. I don’t think anyone will ever do it again”
“The first show we played in LA was the [600-cap.] Country Club, and because we had support from K-Rock and the LA Times, it was sold out. When we returned three months later, we were able to sell out the 3,000-seat Santa Monica Civic [Center].”
McGuinness said a consequence of that early focus on live is that a lot of the promoters of their first shows “grew up with us.” Adding “Very often they’re now Live Nation territory bosses, so the sensation is often of still doing business with the same people.”
McGuinness stepped down as U2’s manager in 2013, two years after the conclusion of the innovative 360° tour, which saw the band play ‘in the round’ with the audience in a circular configuration around the stage – still the highest-grossing concert tour of all time.
Despite the tour netting him and his band more than US$736 million, McGuinness said his favourite U2 show is still their first performance at Madison Square Garden, in 1985. (The same is true for Dire Straits, agreed ex-manager Bicknell.) “Even though you get paid less, as the union has cottoned on to how sentimental bands are over the venue – I think there are union stagehands from New Jersey who haven’t left their houses in 20 years that are still getting paid – the vibe is just extraordinary,” he commented.
With discussion – inevitably – turning briefly to secondary ticketing, McGuinness said the price scaling for the 360° tour was “pretty good. We had $25 tickets further from the stage, with prices going all the way up to $120, $150, all sold out.”
“Everyone liked the idea of touring an in-the-round stadium production,” he concluded, “but it took a lot of money and imagination to turn it into a reality. I don’t think anyone will ever do it again.”
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