Low ticket sales and concert tour cancellations nationwide: Is Acrisure Arena vulnerable?

Low ticket sales have led to a series of high-profile summer concert and tour cancellations across the nation — including Jennifer Lopez and The Black Keys — and some industry-watchers are warning of "consumer spending fatigue."

There's a lot at stake here in the Coachella Valley, home to the relatively new Acrisure Arena which opened in 2022 and is programmed by Live Nation-Ticketmaster. The venue opened with promise of concerts by national touring acts kicking off tours here or on the way to Los Angeles or San Diego.

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And while both Lopez and The Black Keys had planned stops at Acrisure that were canceled, a top official at the venue says music fans shouldn't be alarmed. And tour data indicates the panic may be premature.

Upcoming shows at the arena by Jeff Lynne's Electric Light Orchestra and Shakira are almost sold out, which John Page, Acrisure Arena's senior vice president, attributes to the venue's proximity to other major markets such as San Diego, Los Angeles and Phoenix. Additionally, the arena has been used for rehearsals by Janet Jackson and Olivia Rodrigo ahead of their sold-out opening night concerts in the building.

"It’s a great facility, the industry is aware of it and it’s on the map. It’s a great attribute to the community as a whole and there’s nothing but upside for the future," Page said. "Whether it’s Jeff Lynne’s ELO and a couple of other tours we’ll probably see, they’re going to start here, do their rehearsals and get going. We’re set up for positive results here until the end of time.”

Page explained that the success of a tour is determined by the artist's management selecting which cities will be on the itinerary and how many shows there will be. He added local sales for Lopez' canceled July concert were “in the upper echelon of arenas on the tour.”

“It’s unfortunate the rest of the markets didn’t perform, but it’s the nature of the beast. Sometimes you think a tour is going to do really well and for whatever reason, it doesn’t,” Page said.

The Coachella Valley's seasonal economy does not generally impact ticket sales or when a show sells out, but it also depends on the type of show and who is performing. Olivia Rodrigo, The Eagles, Harry Styles and Madonna are examples of artists with strong box office sales at the arena over the past two years.

“Lots of it depends on people’s attention and making sure we reach them to allow them to participate in a presale or get in line for an online sale," Page said.

Sports events are not showing any signs of declining box office sales. Acrisure Arena is home to the American Hockey League's Coachella Valley Firebirds and will host the AHL's All-Star Classic at Acrisure Arena on Feb. 2-3, 2025.

The arena added an extra Los Angeles Lakers exhibition game in October. Additionally, the Seattle Kraken will play its first NHL preseason game there this fall, and the college basketball Acrisure Series in November is expanding from two days to four, Page said.

“I think from a leisure destination depending on the time of the year, these events are not only great for us at the arena, but also for the residents of the Coachella Valley for tourism," Page said.

Arena boosting tourism, local economy

When plans for the arena were announced in 2019, Visit Greater Palm Springs President & CEO Scott White said that based on his previous positions in Phoenix and San Antonio, he was confident the venue would have a positive impact on the local economy, tourism and job creation.

A June report from Visit Greater Palm Springs states that the arena has contributed $168.5 million to the local economy and has supported almost 2,000 jobs. The arena has surpassed its 2023 predictions in several areas, such as annual direct spending, job creation, labor income, event attendance, number of out-of-area event attendees, total business sales, and contributions to state and local taxes.

In 2023, the 11,000-seat arena hosted 117 events, drawing a total of 850,400 attendees, with an average of 7,268 attendees per event. This attendance figure exceeded the 2021 estimates of 6,000 attendees per event. Visit Greater Palm Springs estimates that 40% of the visitors, amounting to 443,700 individuals, hailed from areas outside the Coachella Valley.

"I had no idea it would be this impactful during the first year and it's beyond any of the expectations I had for what it would do for the destination. Not only creating an incredible venue for the community to experience hockey and concerts, but in one area where we lacked ― things to do at night," White said. "There's a considerable amount of people coming from out of the market to experience the events. Almost 50% of the tickets sold to credit card holders outside of our market."

According to White's observations, there has been a significant surge in individuals opting for remote work arrangements and relocating to the Coachella Valley both during and after the COVID-19 pandemic. This shift has not only transformed the region but has also had a positive impact on the local economy. Even though the area is still a seasonal destination, tourism is becoming full-time and the arena's programming reflects this.

"Our message to cities is the whole valley was designed from an infrastructure standpoint for the winter and fall, and now that we're becoming more year-round, we need to start evolving on how we develop pedestrian areas in downtown areas of Palm Springs, Indio, La Quinta and so forth with experiences and things to do in the summertime," White said.

National ticket sales are up and cancellations are flat

Are the cancellations of Lopez's and The Black Keys' summer tours a sign of declining ticket sales? According to a statement from events promoter and venue operator Live Nation to the New York Times, sales are actually rising compared to the previous year. In 2023, 100 million tickets were sold for tours headlined by Taylor Swift, Beyoncé, and Bruce Springsteen.

“Some events naturally fall off for various reasons, and in 2024 across all venue types we’ve seen a 4% cancellation rate — which is flat to last year," Live Nation told the New York Times.

While reviewing Ticketmaster's seat maps revealing available tickets for upcoming events at Acrisure Arena, many are doing well. Also in May, Live Nation held a sale with $25 tickets for 5,000 concerts in the U.S.

Mexican singer Carin Leon, who also performed at Coachella and the Stagecoach Country Music Festival in April, is scheduled to play a sold-out show at the arena in September within a week of Peso Pluma's concert. Additionally, Santa Fe Klan, who performed at the arena last year, is also experiencing strong ticket sales.

“I think repeated business based on what we’ve been able to accomplish with shows that cater to the Latin market is good for business, and we’re comfortable with where sales are and will be at the end of the day,” Page said.

Desert Sun reporter Brian Blueskye covers arts and entertainment. He can be reached at [email protected] or on Twitter at @bblueskye.

This article originally appeared on Palm Springs Desert Sun: Summer concert tour cancellations: Is Acrisure vulnerable?