The $2.3 billion sale of ASM Global, the facilities management firm that manages Chicago’s Soldier Field and Dubai’s Coca-Cola Arena, among other properties, was finally completed today, a full 10 months after it was announced that Legends was buying the company from AEG and Canadian private equity firm Onex. The long delay was the result of a U.S. Department of Justice investigation into Legends for allegedly violating antitrust rules in reviewing the deal, recently released documents show. Legends was subsequently ordered to pay a $3.5 million civil penalty.
According to court documents from the Southern District of New York – the same court where Live Nation is battling the U.S. Department of Justice in a historic antitrust case – Legends officials allegedly “unlawfully took control of ASM” during a statutory waiting period that “required Legends and ASM to continue to operate as separate and independent companies while the Department of Justice’s Antitrust Division reviewed the acquisition.”
According to a Justice Department complaint, Legends won the right to manage a new arena project in San Diego that had previously been managed by ASM Global. After winning the contract, Legends transferred some responsibility for the contract to ASM, even though merger review had not been completed and Justice Department approval had not been obtained.
In August 2023, Legends officials allegedly again violated DOJ rules requiring the two firms to act as separate entities when bidding for a North Carolina contract to manage an existing entertainment complex. According to the DOJ complaint, “a Legends executive emailed Legends’ then-CEO, saying, ‘I assume we’d rather have ASM handle this?’ The then-CEO informed another executive, ‘We’ll find out if ASM makes an offer, since we don’t want to both bid,’ and set a calendar reminder for himself to
Speak to a senior ASM manager about the North Carolina bid.” The Justice Department alleges that Legends and ASM also illegally shared information about two other projects for which they had bid.
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 less than the maximum penalty allowed,” according to government documents, which note that “a lower penalty is appropriate because Legends has demonstrated a willingness to take remedial action internally and contest the allegations in court, thereby avoiding ‘the costs associated with lengthy investigations and litigation.'”
Under the agreement, Legends must “appoint an antitrust compliance officer at its own expense, conduct compliance training, certify compliance with the final judgment, maintain a whistleblower protection policy, and grant the United States inspection and interview rights to assess compliance with the final judgment,” the documents say.
The sale of ASM Global to Legends came to fruition last year after Canadian private equity firm Onex informed AEG of its plans to sell its 35 percent stake in ASM. Rather than buy Onex, AEG agreed to put the entire company up for sale. On November 3, Onex and AEG jointly announced that Legends was buying ASM, creating the country’s leading event management company.
Representatives for Legends and ASM Global did not immediately respond to requests for comment.
“The next era of legends begins now,” said Daniel LevyCEO of Legends, in a press release Friday (August 23). Global investment firm Sixth Streets owns a majority stake in Legends, while affiliates of the New York Yankees and Dallas Cowboys hold minority shares. Levy, who previously worked at Meta, became CEO of Legends in April.
Ron BensonPresident/CEO of ASM Global, added, “One of our mantras at ASM Global for years has been ‘The future is now.’ By joining forces with Legends, that future is not only here, it couldn’t be better. The opportunities created by the combined capabilities of our companies will not only increase the success of our partners, customers and projects around the world, but also that of the entire industry.”
Founded in 2008, Legends now serves 400 clients, 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 the time being.
Moelis & Company LLC and BofA Securities, Inc. acted as financial advisors to Legends, while Ropes & Gray LLP and Cleary Gottlieb Steen & Hamilton LLP acted as legal advisors. Goldman Sachs and Jefferies acted as financial advisors to ASM Global, while Latham & Watkins LLP, Hogan Lovells and Arnold & Porter acted as legal advisors.
