Minneapolis' Armory faces backlash for taking 25% cut of bands' merchandise sales

One of Minneapolis' biggest and most-visited concert venues, the Armory, is earning negative attention nationwide after the singer of the metal band Falling in Reverse lambasted it onstage and on social media for wanting a 25% cut of his group's merchandise.

"There's not a single reason these venues have that makes this okay," Ronnie Radke wrote in a post on X, formerly known as Twitter, after his group headlined the 93X Nutcracker concert Saturday at the Armory. His comments were quickly picked up by national music news sites.

"To anyone out there ever wondering why merch is so expensive it's because these venues are STEALING from the artist," Radke wrote. "Last night I told @armorymn to go [expletive] themselves on stage, and if any of you bands play this venue I'd advise you do the same."

Video clips shot by audience members confirm the singer used an expletive and raised his middle finger to the venue during the concert, which also featured Daughtry. That night, Falling in Reverse opted not to sell any of its T-shirts or other merchandise on site, typically a major source of revenue bands depend on to make touring profitable.

"We'd have to charge you guys way more just to make any money," Radke said on stage of his group's decision.

In a statement issued to the Star Tribune, representatives of the Armory said the 25% cut was part of the contract negotiation with the band's agents and "the costs associated with the service of selling it; livable wages for the local vendors who set up, sell, and are responsible for the inventory, materials, infrastructure and logistics.

"As an independent venue we work extremely hard at keeping our deals with artists honest, fair and transparent throughout the entire show process," the Armory's statement read.

"Although we disagree with the claims made, it is not our policy to publicly comment on financial arrangements. We are very disappointed that Falling In Reverse felt mistreated. We will continue to work hard to ensure this situation doesn't happen again."

Most midsize to large rock venues — including Minnesota powerhouse First Avenue and its associated properties like Palace Theatre and the Fine Line — have long made it a practice to take 10% to 20% of many of its performers' merchandise sales. Some U.S. venues have gone as high as 40%.

The tactic has been a hot topic since the concert industry roared back to business in 2021 following the COVID-19 lockdown, which put venues around the country in a precarious financial state alongside all the musicians forced off the road.

In an effort to appear more artist-friendly, the concert industry's biggest promotions company, Live Nation — which owns Ticketmaster and Twin Cities venues the Fillmore and Varsity Theater — announced in September that it would not take any merch sale money from artists through the end of 2023. Live Nation has not indicated whether it will continue that policy into the new year.

An 8,000-person-capacity room in a historic former military building, the Armory frequently works with Live Nation on concerts but is independently owned by Twin Cities developer Ned Abdul of Swervo Development Corp., which also recently bought and remade Minneapolis' Uptown Theater into a live entertainment venue.