Live Nation’s Dallas Blues

Auditors claim that House of Blues Entertainment, now owned by Live Nation, owes Dallas nearly $850,000 in back lease payments on the former Smirnoff Music Centre in Fair Park, according to a May 12th report.

The audit accuses HoB of not properly reporting and calculating lease payments in accordance with its agreement with the city, which owns the venue, according to the Dallas Morning News.

Dallas city auditor Craig Kinton concluded that HoB/Live Nation failed to properly account for ticket sales and income derived from ticket sales, sponsorships, parking, concessions and income assessments, the paper reported.

"We recommend the city attorney continue with the negotiation process with Live Nation for a settlement" and "take the necessary steps to collect the money due to the city," Kinton reportedly wrote in the audit.

The venue, now known as Center, continues to be operated by Live Nation.

"The City auditor’s report goes back to 2001, when House of Blues managed the facility," LN spokesman John Vlautin told Pollstar via e-mail. "This was prior to Live Nation’s acquisition of House of Blues in December of 2006. Since soon after the acquisition, Live Nation has been in negotiations with the City of Dallas for a resolution of the interpretation of their audit and we are hopeful that this will finally be resolved in the near future."

The lease states that Dallas is entitled to share various revenues with Live Nation, according to the Morning News. Currently, the city is reportedly guaranteed a $350,000 minimum payment. Additionally, the city is to receive a flat fee of 15 cents per ticket sold, among other revenue streams.