According to a November 1 statement issued by the arena, the Palace accepted two violations of Michigan Liquor Control Commission laws and, in exchange, a third allegation was dismissed and the venue can maintain its liquor license.

Prosecutors at the state attorney general’s office accused the Palace of violating rules governing its liquor license when the Dr. Dre and Eminem concert included a video depicting a violent shootout, simulated sex acts and nudity.

The Palace’s liquor license stipulates that no nudity, taped or live, can be shown, the Detroit Free Press reported.

However, venue officials said they were “caught between a rock and a hard place” because just hours before the show, a federal court issued an injunction preventing the Palace from stopping the video, despite warnings by city officials and law enforcement.

The injunction, issued by the United States District Court for the Eastern District of Michigan, followed the previous night’s Up In Smoke concert at Detroit’s Joe Louis Arena, where threats from the city halted the video’s showing.

U.S. District Judge Nancy Edmunds ordered the Palace not to interfere with the concert.

“We would have violated a federal court order had we interfered with the display of the video,” Palace President Tom Wilson said.

Auburn Hills Mayor Tom McMillin is reportedly incensed by the agreement between the Palace, the attorney general and the city. In a Free Press article, McMillin called the fine a “slap on the wrist” and demanded tougher penalties.

“I would hope the attorney general would reconsider going so lightly on a crime against children,” McMillin said.

A spokesperson for the attorney general’s office said the penalty was appropriate. “While in theory, there could have been a possible suspension or revocation of the license, in light of the fact that this is a first offense and there was a federal court order in play, the chances of that were slim and none,” the spokesperson said.