Fred Rosen keeps a stuffed wizard on his credenza, a gift from a business associate who applauded his seemingly magical transformation of a nearly bankrupt company into one of the largest entertainment ticketing companies in the nation.

But Rosen, chairman and chief executive of Ticketmaster, based in Los Angeles, gives less credit to wizardry than to his aggressive battle plan against the New York-based Ticketron, which until recently held a solid lock on the national computerized ticketing industry.In seven years, Rosen built the privately held Ticketmaster to estimated annual sales of $500 million on 25 million tickets.

He projects revenues of $75 million this year. The firm accomplished this largely by taking away key clients of Ticketron, the industry pioneer, which reported sales of $415 million for 1988.

The route to Rosen's success was a computer system that, unlike Ticketron, could provide series ticketing and sales reports to entertainment clients.

And instead of taking a passive role as seller, Ticketmaster also promoted and advertised the events it sold.

While Ticketmaster snatched away clients, Ticketron was suffering from the vicissitudes of its cash-starved parent, Control Data.

"Ticketron was a misfit within the Control Data environment," said Robert Gorra, senior vice president of Ticketron.

"We really needed a new system, but Control Data decided the money would be put to better use elsewhere."

- NOW TICKETRON may be fighting back. Gorra says his company is installing a new system with help from its new owner, the Carlyle Group, a private merchant bank in Washington.

Though Carlyle Group would not comment, several entertainment-related companies are reportedly interested in participating.

Analysts say it will be difficult for Ticketron to regain its top position.

"It would take someone with an enormous amount of cash and good technology," said Brian Fernandez of Brean Murphy, Foster Securities Inc. in New York.

Gorra contends the two companies are virtually neck in neck, with similar sales and revenues.

"This business is a capital drain. It costs a great deal of money, but has a low margin. That's true for Ticketmaster too, no matter what they say."

Rosen attempted to purchase Ticketron for $20 million this fall, $4 million more than the reported cost to Carlyle. Why did Ticketron refuse? "They hate me," he said.

Perhaps the reason is Rosen's tenacious calls to long-standing Ticketron clients. Or what seemed to be Ticketmaster's personal war through trade media.

"I made them out to be like ghouls from `Night of the Living Dead,' " says Rosen, 45. "I believe business is a war."

- TICKETRON WAS PERCEIVED by most as invincible, from its start in 1968 when it pioneered the computerized ticketing industry, to the early 1980s, when telephone ticketing brought a host of new competitors.

Given its nationwide entrenchment, most challenges had been unsuccessful.

Rosen knew little about ticketing or entertainment when he took on a short-term project as attorney for Ticketmaster in 1982.

The company was based in Scottsdale, Ariz., then and was struggling to sell computerized ticketing systems to arenas.

- ROSEN SAW THE POTENTIAL in the company's system if it were sold as a service.

He called the Chicago investor Jay Pritzker, who owned a small stake in the company, and persuaded him to ante up $1 million to build "the biggest ticketing company in America."

Pritzker recalls that he was a bit nervous, but when Rosen produced other interested investors, he decided to finance it even further.

"I decided to take a gamble and let him try to run it," said Pritzker. "You never know in these situations whether they're `turnaroundable.' But this has been a good investment."

For Rosen, who had practiced law in New York since 1972, it was the golden chance to run his own business.

"If you're an entrepreneur at heart and you want to hear your own music, you've got to find a business that is what I call `within the cracks,' " he said.

- ANTAGONISM to Ticketron had been building in the entertainment and sports industries.

"They had the attitude of `We have the system: you do it our way or else,' " Rosen said. "I knew from talking with promoters and others in the business that Ticketron was vulnerable."

Within the first six months of operation, Ticketmaster offices were moved to Chicago.

Rosen commuted from New York, and Pritzker helped seal contracts from the Chicago White Sox and Cubs and the concert promoter JAM.

The going was difficult and the money ran out quickly. Projected costs of $5 million soared to between $12 million and $13 million.

Pritzker unhappily bankrolled the rest. Promoters and arena managers were skeptical, having seen too many newcomers fade away in the presence of Ticketron.

- THE BREAKTHROUGH CAME with a major arena in Los Angeles, The Forum, that had been Ticketron's first fully computerized client in 1968 when it opened.

Throughout the year, Rosen had made relentless calls to Lou Baumeister, its manager, pointing out his system's advantages. He also made a bid, but felt it was hopeless.

He had another late night flight back east, but after he arrived, Baumeister called to say yes, the account was his.

Another call came a few days later. Ticketron had reneged on a 60-day cancellation clause, choosing to pull its systems from The Forum in 10 days.

- TICKETMASTER JUMPED IN. Employees worked around the clock to install its systems within seven days.

"I thought, `They just gave me the marketplace,' " Rosen recalled. "It was a signal that they thought they could muscle people."'

Rosen soon moved the company's headquarters to Los Angeles. Within a year, Ticketmaster had nailed the biggest promoters and the biggest venues in Los Angeles, said Steve Rennie, president of Eric Chandler Management.

"They came in like a blitzkrieg. When something like that happens, it means something's wrong with the other company. With Ticketron, the main problem was the service level."

"Word got around about Ticketmaster," said Jim Michaelian, vice president of the Grand Prix Association of Long Beach.

"From our perspective, there were distinct advantages. They're marketing people as well as service people."

By 1985, Ticketmaster was in the black, with more than 50 percent of the Los Angeles market and offices in New York, Detroit, Seattle and Indianapolis. To Rosen's surprise, Ticketron still seemed oblivious.

"They gave us a huge opportunity," he said. "There's no reason why this company should be alive today. There were 18 different ways we could have been stopped."

Gorra said Ticketron had underestimated the threat. "That happens when you control a marketplace; you get a little lax," he said.

"Ticketmaster offered attractive financial arrangements to clients. They were hungry and very, very aggressive."

Rosen said Ticketron never understood the importance of the West Coast, where so many entertainment promoters are based.

"Had we not come here, I don't think this story would be the same," said Rosen. "We used this as a springboard to expand back West to East."

Ticketmaster has built field offices and acquired local ticketing agencies across the country, for a total of 100 market areas today.

Rosen figures about a third of the company's sales growth has been through acquisition.

Each property has been expanded after purchase.

For example, the New York office was losing $400,000 per month on sales of $30 million when bought six years ago. Now it posts $100 million in sales with profits in excess of $2 million a year, according to Rosen.

Ticketmaster expanded telephone operations: 50 to 150 operators, 90 to 300 lines.

- POPULAR MUSIC has been important to Ticketmaster's success, accounting for nearly 70 percent of its ticket business today.

And though Ticketmaster's gross ticket sales jumped by almost $100 million this year, Rosen contends that overall concert sales shrunk by 30 percent to 35 percent.

"There were more big name concerts, but fewer shows overall," he said. The capacity and speed necessary for handling the biggest shows is mind-boggling.

For the Rolling Stones tour this summer, Ticketmaster in New York sold out two Shea Stadium shows - 115,000 tickets for $3 million - within an hour and a half.

Even with such numbers, Rosen says there is only enough room for one national ticketing company.

"This is the kind of business that leads itself to be an oligopoly. Except for New York and L.A., I don't know that cities can support two ticket companies. Generally one wins and one loses."

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Ticketron is far from throwing in the towel. It has solid contracts with Broadway theaters, plus baseball and concert ticketing and most national parks reservations.

Gorra expects the new owners to inject vitality and a more competitive spirit by being more involved in sports and entertainment.

"If Ticketron gets more competitive, who knows," said Rennie.

"If Ticketmaster gets complacent and lazy and greedy, it could happen to them."

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