We can’t even begin to imagine how excited SFX is to leave 2015 behind and have a fresh start. After financial concerns canceled an entire festival, TomorrowWorld’s incredible backfire, and Robert Sillerman’s fraudulent behavior, the bad news keeps pouring in.
It was briefly speculated that Live Nation Head of Electronic Music James Barton would be joining SFX as CEO, but those discussions have fallen through. Sources have stated that Barton’s salary demands exceeded SFX’s budget, but others have said his concern for the company’s financial issues was the real deal-breaker.
Additionally, the partnership between Spotify and Beatport from July has been formally terminated as of December 17th. As a result, SFX will have to repay a $10 million recoupable advance to Spotify as outlined in the settlement agreement. So far, SFX has paid $2.5 million of the total, but the remainder is due no later than July 1, 2016. However, that deadline will not hold in the event of a Beatport sale or payment default, and we’re all well acquainted with Mr. Sillerman’s business ethics…
Still, it doesn’t stop there for the sinking industry giant. Back in April 2014, SFX acquired TMWRK, the management company behind Dillon Francis, Jack Ü, A-Trak, Diplo, and a host of other A-listers. But the company has seen enough, and is bailing out of their acquisition by paying a $3.6 million settlement. TMWRK might actually be doing them a favor, as these funds will likely go towards remunerating Spotify for the sour deal, but in the end, losing Diplo, Jack Ü, and Dillon Francis is a huge blow.
H/T Less Than 3