Legends settles with DOJ over ASM deal complaint

Legends has reached a US$3.5 million (€3.2m) settlement with the US Department of Justice (DOJ) after being accused of “illegal premerger coordination” in connection with its planned purchase of ASM Global.

The New York-headquartered premium experiences giant confirmed in November 2023 that it had agreed to acquire ASM in a reputed $2.4 billion deal – subject to regulatory approvals – creating a premium global live events firm.

However, the DOJ filed a civil lawsuit in the Southern District of New York, alleging Legends had exercised “operational control over aspects of ASM during the HSR waiting period involving venue management services for an arena in California”.

The HSR (Hart-Scott-Rodino) Act prohibits companies from “improperly combining operations or other aspects of their businesses” until the required waiting period has expired.

“Companies must remain separate and independent before they close their merger,” says deputy assistant attorney general Andrew Forman of the Justice Department’s antitrust division. “Our complaint alleges that Legends did not live up to that obligation.”

At the same time as filing the lawsuit, the DOJ put forward a proposed final judgment that, if approved by the court, would resolve the case.

“We look forward to closing our deal with ASM Global this month”

Under the terms of the settlement, which offers no determination of liability, Legends must pay a $3.5m civil penalty, refrain from certain conduct, appoint an antitrust compliance officer, implement an antitrust training and compliance program and submit regular compliance reporting to the department.

“The proposed settlement requires Legends to pay a meaningful civil penalty and imposes significant obligations to try to ensure that Legends complies with the law moving forward,” adds Forman. “I commend our tremendous investigative teams who remain vigilant in trying to ensure that there is no improper coordination between parties before closing.”

Founded in 2008, Legends is backed by global investment firm Sixth Street. Its clients include prestigious brands such as Real Madrid, SoFi Stadium, Dallas Cowboys, FC Barcelona, New York Yankees and the Ryder Cup.

A spokesperson for Legends says the ASM acquisition remains on track to close before the end of August.

“We are pleased this matter is resolved,” says the spokesperson. “Moving forward, we are focused on continuing to serve our clients, and we look forward to closing our deal with ASM Global this month.”

Los Angeles-headquartered ASM Global, which was formed in 2019 following a merger between arena operators AEG Facilities and Onex’s SMG, operates buildings including ICC Sydney Convention Center, Avicii Arena in Stockholm, OVO Arena Wembley, Coca-Cola Arena in Dubai and State Farm Stadium in Glendale, Arizona.

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