What is "radius clause"

A radius clause is a form of non-compete clause used in the live music industry, in which a tour promoter stipulates that a performer, for a certain length of time prior to or following an appearance at a concert or festival, must not hold concerts at other locations within a certain radius of the city where they are to perform. In essence, it gives the promoter a form of territorial exclusivity, ensuring that the performer does not book concerts with competing promoters and venues in nearby areas, which can undermine ticket sales for their main event.

Critics in favor of radius clauses have agreed with their intent to protect the investments of organizers into the production and promotion of music events, and that they are a worthwhile trade-off for acts wanting to obtain the expanded exposure that a festival performance can provide. Others have criticized the concept, arguing that they effectively discourage major acts from performing in smaller cities, and are influenced by a profit-oriented mentality in the live events industry. In 2010, the state of Illinois also launched an antitrust investigation into the use of radius clauses by Lollapalooza.