{"id":116522,"date":"2019-10-07T03:43:09","date_gmt":"2019-10-07T10:43:09","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=116522"},"modified":"2019-10-07T11:29:03","modified_gmt":"2019-10-07T18:29:03","slug":"dj-marshmello-leaves-palms-nightclub-gig-early-likely-with-handsome-payout","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/dj-marshmello-leaves-palms-nightclub-gig-early-likely-with-handsome-payout\/","title":{"rendered":"DJ Marshmello Leaves Palms Nightclub Gig Early Likely with Handsome Payout"},"content":{"rendered":"

Christopher Comstock — known professionally as Marshmello — the now ex DJ at Kaos Nightclub<\/a> at The Palms Las Vegas, may have had a lucrative payout provision in his contract. Or, at least, went through recent negotiations with Palms management, as his residency ended midway between his $60 million, two-year booking, entertainment attorneys said.<\/p>\n

\"\"
DJ Marshmello has left Kaos Nightclub at The Palms. He likely received a payment for his early departure. (Image: TimeOut.com)<\/figcaption><\/figure>\n

The Station Casinos property gave him top salary to lure customers to the upscale nightclub for,\u00a0 among other reasons, liquor and food sales. Marshmello was a popular attraction, especially for those in their 20s and 30s. In that way, he is similar to singer Lady Gaga<\/a>, who continues to perform at MGM Resorts Park Theater.<\/p>\n

Unnamed sources recently told the Las Vegas Review-Journal <\/em>that Marshmello will get in the millions of dollars — but not more than $30 million — in payments to cancel the rest of the engagement. The contract was believed to have been signed in April, and reportedly paid him approximately $600,000 a weekend.<\/p>\n

He had worked earlier at Wynn Nightlife. That Las Vegas entertainment venue wanted him to remain, but Marshmello left for The Palms.<\/p>\n

\n

Not connected to the deal, James Sammataro, a Miami-based attorney at Pryor Cashman and co-chair of the firm\u2019s media and entertainment practice group, told Casino.org<\/em> that, given that Marshmello \u201csigned with The Palms amidst a bidding war with the Wynn, his contract presumably contains a handsome parting gift.\u201d<\/p>\n<\/div>\n

Even so, why would a venue pay him as much as $60 million for only two years?\u00a0Sammataro, who has represented artists such as Enrique Iglesias and large studios such as Sony and Warner Brothers, explains that economics in Las Vegas differs \u201cfrom a traditional analysis conducted by a venue\/promoter in pricing a concert.\u201d<\/p>\n

Sammataro said the \u201cvenues generally hold capacities between 3,000 to 5,000 concert-goers. The successful hotels can nonetheless pay arena prices, i.e., capacities of 14,000-plus, because the concerts drive people to the hotel, as well as the hotel\u2019s restaurants, bars and casinos.\u201d<\/p>\n

For The Palms, signing Marshmello to \u201can industry-shaking reported $60 million deal was presumably about more than attracting concert-goers and filling up the biggest party space in Vegas,\u201d Sammataro explained. \u201cIt was the ultimate headline to punctuate its $690 million reinvention.\u201d<\/p>\n

Marshmello Key to Palms Rebrand<\/h2>\n

He said that Marshmello was part of The Palms \u201cre-brand, and its promise to \u2018redefine the daylife and nightlife experience in Las Vegas.\u2019 Kaos\u2019 goal was not to beat other clubs. It was to compete with festivals by having DJs and other artists play to indoor and outdoor crowds simultaneously, while filling its 39 cabanas, bars, and selling food and booze packages,\u201d Sammataro added.<\/p>\n

Marshmello\u2019s deal also signaled that the market for resident DJ\u2019s was \u201cstill robust,\u201d Sammataro said.<\/p>\n

At some point, there had to be a ceiling on the highest-paying residencies, as the price tags had been inching up steadily until Marshmello\u2019s industry-rattling deal,\u201d Sammataro explained. \u201cWe\u2019ll see if this exit is an outlier, or if it will mark a downtrend in what is a cyclical business.\u201d<\/p><\/blockquote>\n

On a related front, electronic dance music (EDM) artists, such as Calvin Harris, David Guetta, and previously Avicii, \u201chold particular appeal in that they do not require the expensive staging necessary for other acts,\u201d Sammataro said. \u201cFrom a production cost perspective, it\u2019s one guy and a laptop. It also marked a departure from what had been a trend towards smaller, more intimate, and customized experiences, marked by the Jewel at Aria, Intrigue at Wynn, and Park MGM\u2019s On the Record.\u201d<\/p>\n

Contract Specifics<\/h2>\n

As far as a contract for a DJ like Marshmello, \u201ca smartly-drafted contract contains built-in outs,\u201d Sammataro advises. \u201cThis should be a front-end negotiation, with out-clauses scheduled at designed intervals — i.e., every six months — and tethered to specific performance or revenue-based thresholds.<\/p>\n

\u201cThe ability for a venue to secure this downside protection is dependent upon negotiation leverage. High-powered talent will insist upon true guarantees or a \u2018no cut\u2019 provision,\u201d he added. Sammataro said that, \u201cTo the extent that there are not expressed contractual provisions allotting for a buy-out and specifying the precise economic terms of the buy-out, it all comes down to, what else, money.\u201d<\/p>\n

\"\"
James Sammataro, an attorney at Pryor Cashman and co-chair of the firm\u2019s media and entertainment practice group, advises putting in appropriate language in a performer’s contract, such as buy outs or no-cut provisions. (Image: Pryor Cashman)<\/figcaption><\/figure>\n

He suggests parties in the agreement need to find \u201cthe right strike point, at which it is more palatable for the venue to pay an exit penalty than to continue to honor the contract.\u201d<\/p>\n

Where the point lands depends on several factors, according to Sammataro. These include: Was the residency not working to the extent that it was harming the artist\u2019s brand? What was the emotional toll of the relationship? Does the artist have other commercial opportunities? Can potential breaches be asserted against the artist, etc.?\u201d<\/p>\n

Kamal Moo, a Los Angeles entertainment attorney who has represented such artists as Janet Jackson, further told Casino.org,<\/em> \u201cI don\u2019t see many agreements that give the artist the ability to just walk away from an engagement. That would basically defeat the purpose of having a contract.\u201d<\/strong><\/p>\n

Moo, who is not connected to the Marshmello case, said, \u201cIf there was some kind of breach by one side, that could have triggered some sort of termination language. But, generally, unless there\u2019s a force majeure event — for example, the theater burns down — it\u2019s difficult to just walk away from a contract.\u201d<\/p>\n

Additionally, unless there\u2019s some termination language in the agreement, then a termination will need to be negotiated, Moo said. \u201cIf the parties can reach an agreement regarding termination, the parties will also usually release each other from liability in exchange for something, normally some sort of payment.<\/p>\n

“If termination negotiations are unsuccessful, then the parties can escalate things and go to arbitration — if that option is in the contract — or litigation to sort things out,\u201d Moo advises.\u00a0But generally, parties want to avoid that because \u201cit can get expensive and messy,\u201d Moo explained.<\/p>\n","protected":false},"excerpt":{"rendered":"

Christopher Comstock — known professionally as Marshmello — the now ex DJ at Kaos Nightclub at The Palms Las Vegas, may have had a lucrative payout provision in his contract. Or, at least, went through recent negotiations with Palms management, as his residency ended midway between his $60 million, two-year booking, entertainment attorneys said. The […]<\/p>\n","protected":false},"author":44,"featured_media":116524,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3313,60],"tags":[],"acf":[],"yoast_head":"\nDJ Marshmello Leaves Palms Nightclub Gig Likely with Handsome Payout<\/title>\n<meta name=\"description\" content=\"Christopher Comstock -- known professionally as Marshmello -- is now the ex-resident DJ at Kaos Nightclub at The Palms Las Vegas. .\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/dj-marshmello-leaves-palms-nightclub-gig-early-likely-with-handsome-payout\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DJ Marshmello Leaves Palms Nightclub Gig Likely with Handsome Payout\" 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