Home / Business and Economy / Broadway Giant Escapes Prosecution Over Deal
Broadway Giant Escapes Prosecution Over Deal
7 Apr
Summary
- Justice Department dropped criminal investigation into Broadway Across America.
- Company signed a noncompete agreement restricting show presentations.
- The investigation concluded with a nonprosecution agreement.
The Justice Department has closed its years-long criminal investigation into Broadway Across America, a major player in the touring Broadway market. The agency announced it would not prosecute the company after it acknowledged signing a noncompete agreement. This pact, established in 2017, restricted another entertainment company from presenting certain Broadway shows in 44 cities where Broadway Across America operated.
In exchange for this agreement, Broadway Across America committed to continuing its presentations at a San Antonio theater. The Justice Department noted that the second company involved has since been identified as ATG Entertainment. Both companies deleted the restrictive clauses from their contract in 2022.
Broadway Across America stated it acted on good-faith legal advice, though the Justice Department deemed it "clearly erroneous." The company has agreed to implement an enhanced antitrust compliance program as part of the nonprosecution agreement. The resolution highlights concerns over market allocation, which can stifle competition and lead to increased prices.
The Broadway touring market is substantial, with 38 tours reaching 145 U.S. cities during the 2023-24 season, involving $1.3 billion in costs and significant associated economic impact.
