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Michael Lang Claims Dentsu Is ‘Obstructing’ Woodstock 50 In Letter
– Woodstock 50
Lang in his letter to Dentsu, which already spent some $30 million on festival, claims that Yamamoto’s “team blocked this sale for no apparent reason. Together, our organizations faced a question of cash flow since Dentsu had not been successful in selling sponsorships for the Woodstock Festival. … On Monday, April 29, 2019, your team lead by DJ Martin, Charles Horsey and Lucas Cridland sent notice to us at 11am EDT that they had taken control of the festival (which they had no legal right to do) and at 11:15 EDT advised that they had cancelled the festival (which they had no legal right to do).
“This same team had also already notified the press without any advance notice to me or my team. While we were on a call together as a group at 12:00 EDT, the media had already begun reporting that Woodstock was cancelled. I then learned that Amplifi illegally swept approximately $17 million from the festival bank account leaving the festival in peril.”
Lang also accuses the company of directly contacting “all stakeholders, including the venue Watkins Glen International, insurance companies, producers, vendors and performers (some of whom I am lucky to count as personal friends) and suggested they not do business with me, and violate their contracts with my company. Your team has gone so far as to promise indemnification to these contracted parties should they back out of our contracts.”
Dentsu representatives are also alleged by Lang to have dangled potential bookings at the 2020 Summer Olympic Games in Tokyo to artists in exchange for backing out of Woodstock 50.
“These actions are neither a legal nor honorable way to do business,” Lang told Yamamoto in the letter, words which would seem to preface some kind of litigation.
Lang also makes a plea on behalf of those involved with the festival from his partners, music fans, and the local community that stood to gain economically from the festival, and warns that “Dentsu would be known as a company that had acted to attempt to destroy an American cultural icon” before asking Yamamoto to “honor the law and your obligations, stop interfering with our efforts to put on this wonderful event and return the $17 million you improperly took.”
In conclusion, Lang cites Dentu’s “Corporate Statement” and writes that Yamamoto “must be unaware of what treachery has taken place by your company.”
“….since Dentsu has already abandoned Woodstock, all I ask for is that Dentsu walk away peacefully and allow me to deliver to the people a 50th Anniversary Festival. Again, I respectfully ask that Dentsu stop its obstructionist actions with the talent and stakeholders. We feel we now have a window to come together with you to peacefully resolve this matter and create a wonderful and special festival.”
While the four-page letter, typed on Woodstock 50 stationery, falls short of stating an intention to sue, Lang appears to have laid out his case in making demands that Dentsu “stop its obstructionist actions” and return the $17 million in question, which could form the basis of litigation.
“It was a sneak attack,” is how Lang described the news to Pollstar the day after it was revealed that Dentsu Aegis Network, the Japanese advertising conglomerate that partnered with Woodstock 50, was pulling out of the event while also claiming the festival was canceled. Several sources close to the festival told Pollstar they’d been taken by surprise by the timing of Dentsu’s withdrawal last Monday (April 29) with one using the term “blind-sided.”
Dentsu said in its statement, issued without consulting Lang, that it felt it couldn’t ensure the “health and safety of artists, partners and attendees.” This coincided with Woodstock 50’s failure to obtain permits in time for its scheduled ticket on-sale a week earlier (April 22) and reports that the festival was seeking an additional $20 million cash infusion from major promoters — all of which Lang disputes.
Meanwhile, Woodstock 50’s well-curated lineup, put together with Danny Wimmer Presents and includes Jay-Z, Santana, Robert Plant, Dead & Company, Chance the Rapper, Sturgill Simpson, Leon Bridges, Miley Cyrus, Imagine Dragons, Halsey, Courtney Barnett, Vince Staples, John Fogerty, David Crosby, Margo Price and The Killers, appears to remain intact though some agents remain skeptical.
And there’s plenty of cause for skepticism.
Lang did not dispute that Woodstock and festival producer Superfly have since parted ways and, as of publishing time, the event has no producer, no conditional use permit from the village of Watkins Glen, no mass gathering permit from the New York Department of Health, and no funds with which to stage the festival unless an angel investor appears quickly.
As to the claim that artists had contracted with Dentsu, and not Lang’s partnership in Woodstock 50, Lang appears to allude to the possibility: Lang says in the letter that after coming to a meeting of the minds with Martin about terms of the deal, “I was presented with a contract which said Amplifi Live would be a co‐producer as well as a financier. I raised my concern to Mr. Martin who told me this was for optics only because of international investment law but that I should not worry.”
At the end of the 5-page letter, Lang appeals to the Japanese conglomerate’s “Three sources of strength” – ideas, technology and entrepreneurship to drive innovation and bring “positive change to people and society” and asks Dentsu to allow him “to deliver to the people a 50th Anniversary Festival,” and to “stop its obstructionist actions with the talent and stakeholders. We feel we now have a window to come together with you to peacefully resolve this matter and create a wonderful and special festival,”
While the potential for Woostock 50 to attain that goal exists, the longer this dispute between Lang and Dentsu continues without financial investment, the greater the chance is the festival will be scrapped.
Letter From Woodstock 50’s Michael Lang:
May 6, 2019
Mr. Toshihiro Yamamoto
President & CEO
Dentsu Inc
1‐8‐1, Higashi‐shimbashi
Minato‐ku
Tokyo, 105‐7001
Japan
Re: Woodstock 50th Anniversary Festival
Dear Mr. Yamamoto,
I am the producer of Woodstock 50. When I was 24 years old in 1969, my three partners and I brought the Woodstock Music & Arts Festival to life in upstate New York.
Over the last 50 years, Woodstock has grown to be called not only a popular cultural icon but an iconic worldwide emblem of Peace and Love.
Many months ago, I was introduced to members of the Dentsu Aegis Network in New York who were proposing to represent the sponsorship and media sales for the 50th Anniversary Celebration of Woodstock, a music festival to be held August 16‐18, 2019 through their MKTG division. Eventually, MKTG together with Amplifi USA offered to finance the Woodstock Festival. Despite interest from several other organizations and even individuals, we agreed to move forward for both sponsorship sales and financing with your groups.
Initially, I had some concerns about linking an organization like Dentsu to Woodstock. Corporations are not always the right match for certain creative endeavors, but I learned that Dentsu has pursued various social initiatives after certain tragedies and scandals that Dentsu faced which gave me confidence that your company would be an ethical and honorable firm to partner with. Your officer here, DJ Martin, Chief Commercial Officer, reassured me that Dentsu would not interfere , and equally important, could embody the special meaning of Woodstock.
It would only be in a supportive financial role to ensure our mutual success.
Shortly thereafter, I was presented with a contract which said Amplifi Live would be a coproducer as well as a financier. I raised my concern to Mr. Martin who told me this was for optics only because of international investment law but that I should not worry.
We at Woodstock 50 worked together with Amplifi and Dentsu to create a first‐class talent lineup and were working to obtain all necessary permits. In fact, on the morning of April 22, 2019, Earth Day, we were granted conditional approval by The State of New York for our mass gathering permit, along with certain conditions we felt we could meet by working as a team so that we could have tickets go on sale as we had promised the fans and the public.
Your team blocked this sale for no apparent reason. Together, our organizations faced a question of cash flow since Dentsu had not been successful in selling sponsorships for the Woodstock Festival. To fill this void, my side had been working to obtain completion financing and based upon the feedback we had been getting were confident we would be successful. We communicated this to your people. We had also been working on value engineering the site to improve the economics. By Friday, April 26, 2019 we presented multiple plans illustrating a slight profit and substantiated these plans with supporting documents. However, for reasons not explained to us, it seemed to fall on deaf ears.
Three days later, on Monday, April 29, 2019, your team lead by DJ Martin, Charles Horsey and Lucas Cridland sent notice to us at 11am EDT that they had taken control of the festival (which they have no legal right to do) and at 11:15 EDT advised that they had cancelled the festival (which they had no legal right to do). This same team had also already notified the press without any advance notice to me or my team. While we were on a call together as a group at 12:00 EDT, the media had already begun reporting that Woodstock was cancelled. I then learned that Amplifi illegally swept approximately $17 million from the festival bank account leaving the festival in peril.
These actions confirmed my worst concerns about partnering with your company. These actions are neither a legal nor honorable way to do business.
Adding insult to injury, since your team announced that the festival was cancelled, I have received multiple reports and evidence that Dentsu has directly contacted all stakeholders, including the venue Watkins Glen International, insurance companies, producers, vendors and performers (some of whom I am lucky to count as personal friends) and suggested they not do business with me, and violate their contracts with my company. Your team has gone so far as to promise indemnification to these contracted parties should they back out of our contracts.
We also have evidence that Dentsu representatives have gone so far as to say that should the talent back out of Woodstock, they would be seen favorably by Dentsu and that this could result in their performing the 2020 Summer Olympics in Tokyo, where Dentsu is a major organizer. In these actions too, Dentsu has acted not only without honor, but outside of the law.
The consequences of these unjustified actions are far‐reaching and mind‐bogglingly significant. Your company’s actions will impact all those who have been directly involved with the festival, including my colleagues. It will impact all of those who are indirectly involved with the festival, including the public who has been clamoring to be a part of this historic event. It will impact the local community that would have received a much‐needed economic boom. Finally, and in many ways most significantly, it would effectively mean that Dentsu would be known as a company that had acted to attempt to destroy an American cultural icon.
Your actions not only affect my company, but tens of thousands of fans. Fortunately, we have renewed interest in financing and remain confident that Woodstock 50 will take place as planned. In fact, the events of late, while not planned, have caused a groundswell of support for Woodstock in every conceivable manner, making the prospects of having a successful event a virtual certainty even after the actions your company has taken.
In 1969, Woodstock was not just a music festival. It was a movement, carried out not by me and my partners, but by the people. It was in many ways a reflection of the times. We faced many obstacles at that time in putting on the event. We successfully overcame those obstacles, through great perseverance, because we believe in the movement. Today, we feel that there are real issues facing our society, which reminds us in many ways of 1969. We feel we need Woodstock now as we did 50 years ago. We fought to overcome those obstacles then and we feel a similar obligation to overcome those obstacles now.
We only would ask that you honor the law and your obligations, stop interfering with our efforts to put on this wonderful event and return the $17 million you improperly took. It is one thing if your company, Dentsu, wanted to back out of its commitment to Woodstock because it would not make as much money as it had hoped, but to try to suffocate and kill Woodstock so that we could not have a festival for our Golden Anniversary without you is puzzling for any company, let alone one that claims reform.
I bring this matter urgently to your attention because as I read your own Corporate Statement, it seemed to me you must be unaware of what treachery has taken place by your company. Your words below do not line up with the actions taken by your team towards Woodstock:
“Ideas that reach beyond the imaginable.
Technology that crosses the bounds of possibilities.
Entrepreneurship that surpasses the expected.
Three sources of strength,
Driving our innovation,
Bringing positive change
to people and society.”
In the end, since Dentsu has already abandoned Woodstock, all I ask for is that Dentsu walk away peacefully and allow me to deliver to the people a 50th Anniversary Festival.
Again, I respectfully ask that Dentsu stop its obstructionist actions with the talent and stakeholders.
We feel we now have a window to come together with you to peacefully resolve this matter and create a wonderful and special festival.
We have heard from people around the world of the importance of Woodstock to them. Indeed, many good partners have come forward with a desire to help as we all recognize the importance of Peace & Love in today’s world. Woodstock seeks to help heal the planet and the people on it.
I hope to hear from you soon on this matter.
Thank you for listening,
Michael Lang