Metallica, Red Hot Chili Peppers Bet Against the Euro

Dec 5, 2011 2:22pm
gty metallica thg 111205 wblog Metallica, Red Hot Chili Peppers Bet Against the Euro

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Fears about the euro’s instability are causing organizations to reassess their connections to Europe, even prompting bands Metallica and the Red Hot Chili Peppers to push their European tour dates earlier.

Cliff Burnstein,  manager of both American bands, has pushed tours forward for both music groups abroad, as worries about the future of the euro spread.

Heavy metal band Metallica will present their “European Summer Vacation” tour which will include Germany, England and Austria next year, as opposed to playing in the continent in 2013 as originally planned to avoid potential difficulties when concert promoters pay the band in euros, Burnstein told the Wall Street Journal.

“Over the next few years, the dollar will be stronger and the euro weaker, and if that’s the case, I want to take advantage of that by playing more of these [European] shows now, because they will be more profitable for us,” he told the Wall Street Journal.

Burnstein decides in which currency concert promoters should pay the band. Depending on the exchange rate, he can even purchase derivative financial instruments for a preferred rate.

Metallica, which formed in 1981, has won nine Grammy awards and two MTV music video awards for “Enter the Sandman” and “Until it Sleeps.” Their ninth studio album, Lulu, featuring guitarist and vocalist Lou Reed of band The Velvet Underground, was released in October.

Rock-band the Red Hot Chili Peppers began touring in Asia, Europe and Latin America this summer and recently announced they will bring their “I’m With You World Tour” back to North America in January. About 75 percent of the Red Hot Chili Peppers’ revenue is from touring abroad, Burnstein told the Journal.

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