Vigo City Council has been ordered to pay a Spanish promoter more than €1.5 million over the voided sponsorship of a Guns N’ Roses concert in the city.

The city council declared the tender for the June 2023 event void after alleging the only bidder – Galician production company Sweet Nocturna – had failed to present the relevant documentation.

But Sweet Nocturna claimed compensation, insisting there was an “understanding between the parties” over the process and that “preparatory acts” for the gig had already been carried out prior to the deal being formalised.

More than 18 months on, the Administrative Litigation Court number 2 of Vigo has ruled in the music company’s favour, saying it “should have been awarded the contract that had been developed in its essential preparatory acts, in the terms tendered”.

“The magistrate… has upheld the appeal filed by the company and has declared the inadmissibility of Sweet Nocturna in the bidding procedure for the concert and its declaration as void to be contrary to law,” it concluded.

The Guns N’ Roses show, held at Vigo’s Estadio Abanca Balaidos, ultimately went ahead as planned with almost 30,000 fans in attendance after Live Nation Spain guaranteed the event.

“The good faith that must govern any contract, especially public ones, has been undermined”

The judge further described the council’s reasons for rejecting Sweet Nocturna’s offer – that the promoter “did not amend the requirement to prove the ownership of the exclusive rights of representation of the band” – as “absurd”, and ordered it to pay the firm €1,563,000, plus VAT and interest.

“It seems obvious that, if there were any defect in the exclusive ownership of those rights and their transfer to the appellant, the concert would not have been held,” added the judge.

“The good faith that must govern any contract, especially public ones, has been undermined. All this has led to serious irresponsibility on the part of the Vigo City Council, which has been alleviated, to a large extent, by the fact that the plaintiff has kept the commitment made and the programmed and announced agreement has been held.”

The council says it will appeal the verdict.

“We believe that the ruling does not reflect the reality of a public administrative contract for advertising sponsorship, that the advertising services were not fulfilled and that it contains obvious errors,” it says.

Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.

Live Nation Spain is taking legal action against Vigo council over the voiding of a near €2 million municipal sponsorship deal for Guns N’ Roses’ recent concert in the city.

The promoter stepped up to guarantee the 12 June date at Estadio Abanca Balaidos “out of respect to the fans” after it was plunged into doubt due to an “administrative error”, when local production company Sweet Nocturna allegedly failed to present the relevant documentation.

Sweet Nocturna argued the requested deed was “subject to confidentiality and data protection to which local companies have no possibility of access or management”.

According to El Periodico de Espana, LN Spain president Pino Sagliocco says the GNR show “would never have been possible” without the council’s €1.9m sponsorship pledge, and vows to pursue the authority “with all the laws”. “We have no choice but to claim our rights,” he adds.

The organisers say they are taking legal action to ensure “these bad, arbitrary practices do not happen again for the good of the sector”

The gig, which was attended by around 28,000 people, was described by Sagliocco – who has previously brought acts such as the Rolling Stones, Madonna and Muse to Vigo – as “one of the best concerts in the history of Galicia”. Sagliocco says he pressed ahead with the event given the “emotional and economic consequences”, claiming that cancelling would have undermined Vigo’s “prestige”.

Nonetheless, the organisers allege the show “was in danger at all times due to the malpractice of the Vigo City Council,” adding they are taking legal action to ensure “these bad, arbitrary practices do not happen again for the good of the sector”.

However, a joint press conference by Sagliocco and Sweet Nocturna planned for last Friday (16 June) was cancelled, leading Vigoe to speculate that a settlement may have been reached with the authorities.

Guns N’ Roses, who are represented by ITB outside North America, also performed in Spain at Madrid’s Civitas Metropolitan Stadium on Friday 9 June as part of the European leg of their We’re F’N’ Back! Tour. The US band also has upcoming festival headline dates at Tons of Rock in Norway (21 June), this weekend’s Glastonbury festival (24 June) and BST Hyde Park in London (30 June).

Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.