The $2.3 billion sale of ASM Global, the facility management firm that manages venues like Soldier Field in Chicago and the Coca-Cola Arena in Dubai, finally closed today, a full 10 months after it was announced that Legends was purchasing the firm from AEG and Canadian private equity firm Onex. The lengthy delay was the result of a U.S. Department of Justice investigation into Legends for allegedly violating anti-trust regulations during its review of the deal, recently disclosed documents show, which led to Legends paying a $3.5 million civil fine.
According to court records in the Southern District of New York — the same court where Live Nation is fighting a historic antitrust case against the DOJ — officials with Legends allegedly “assumed unlawful control over ASM” during a statutory waiting period that required “Legends and ASM to continue to operate as separate and independent entities while the Antitrust Division of the Department of Justice reviewed the acquisition.”
According to a DOJ complaint, Legends won the right to manage a new arena project in San Diego that had been formerly managed by ASM Global. After winning the contract, Legends assigned some of the responsibility of the contract to ASM, despite not having completed the pre-merger review or received approval from the DOJ.
In August 2023, Legends officials again allegedly violated DOJ rules that the two firms act as separate companies when they bid for a contract in North Carolina to manage an existing entertainment complex. According to the DOJ complaint, “a senior Legends executive emailed Legends’ then-CEO noting, ‘I assume we would rather have ASM chase this?’ The then-CEO informed another executive, ‘we will find out if ASM is bidding as don’t want to both be bidding,’ and set a calendar reminder for himself to
speak with a senior ASM executive about the North Carolina RFP.” The DOJ alleges that Legends and ASM also illegally shared information on two other projects they were bidding for.
Legends was accused of violating the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and agreed to pay a $3.5 million fine, “an amount that is less than the maximum penalty permitted,” government documents reveal, noting “a lower penalty is appropriate because of Legends’ demonstrated willingness to take corrective internal action and fight allegations in court, avoiding “the costs associated with a prolonged investigation and litigation.”
Under the agreement, Legends must “appoint an antitrust compliance officer at its expense, to conduct compliance training, to certify compliance with the Final Judgment, to maintain a whistleblower protection policy, and to provide the United States inspection and interview rights to assess compliance with the Final Judgment,” the documents read.
The sale of ASM Global to Legends got rolling last year after Canadian private equity firm Onex notified AEG of its plans to sell its 35% stake in ASM. Instead of buying out Onex, AEG agreed to put the entire company up for sale. On Nov. 3, Onex and AEG jointly announced that Legends was buying ASM, creating the country’s leading venue management company.
Representatives for Legends and ASM Global did not immediately respond to requests for comment.
“The next era of Legends starts now,” said Dan Levy, CEO of Legends, in a press release issued Friday (Aug. 23). Global investment firm Sixth Streets owns majority control of Legends, with minority stakes held by subsidiaries of the New York Yankees and Dallas Cowboys. Levy, who previously worked at Meta, became CEO of Legends in April.
Ron Bension, ASM Global president/CEO, added, “One of our ASM Global mantras for a number of years has been ‘the future is now.’ By joining Legends, that future has not only arrived, but it couldn’t be brighter. The opportunities created by our companies’ collective capabilities will elevate not only the success of our partners, clients, and projects worldwide, but the industry as a whole.”
Founded in 2008, Legends now has 400 clients under management including Allegiant Stadium in Las Vegas, Caesars Superdome in New Orleans and OVO Arena Wembley in London. ASM Global will continue to operate under its current name for now.
Moelis & Company LLC and BofA Securities, Inc. served as financial advisors to Legends, while Ropes & Gray LLP and Cleary Gottlieb Steen & Hamilton LLP served as its legal counsel. Goldman Sachs and Jefferies served as financial advisors to ASM Global, while Latham & Watkins LLP, Hogan Lovells and Arnold & Porter served as its legal counsel.
