TM Reports Front Line Details
Ticketmaster filed an 8-K form with the Securities and Exchange Commission Oct. 28 detailing the financial relationship between it, Front Line Management and Irving Azoff, who will run both companies.
Ticketmaster, through its holding company, acquired a controlling equity interest in Front Line for $123 million in cash Oct. 23. Azoff is expected to receive $35 million of TM preferred stock plus 1 million shares of common stock, with an option to purchase 2 million shares at a $20 per-share exercise price.
The stock option will vest in equal annual installments over four years, starting on the closing date, which should take place in the last quarter of this year.
Azoff will also join the Ticketmaster board of directors. He will be eligible for annual bonuses from TM but will not be paid by the company.
Although Azoff will act as CEO for the two separate companies, his salary will continue to come from Front Line, where he receives a $2 million annual base salary and a guaranteed $2 million annual bonus.
The deal runs through May 14, 2013. TM is expected to change its name to Ticketmaster Entertainment.