Bankrupt SFX Forced To Pay Artists 100% In Advance, CEO Sillerman Shares Resignation Letter
SFX CEO Robert Sillerman sent a letter to his beleaguered staff encouraging them to be positive and "find the path to success." The note comes as he exits his day to day role at the bankrupt music conglomerate, after being forced out by creditors. That same day, court documents embarrassingly revealed just how distrustful the rest on the music industry is SFX.
SXF Entertainment has revealed some of their festival lineup plans and the contract payment structures in bankruptcy court filings. According to the Wall Street Journal, court documents by SFX revealed that the company is moving forward with festival plans, with events such as Spring Awakening set to take place in Chicago this June, with headliner Skrillex, while DJ/Producer Tiesto will perform at the Electric Zoo in New York in September.
SFX said in court papers that since their February bankruptcy, artists and their agents have been seeking payment in full ahead of performances. To assuage the talent and reps, the company reached a deal to set aside $15 million specifically for performers, which SFX characterized as a “comprehensive solution for a going forward business relationship in these chapter 11 cases between and among the debtors, the artists and the agents," the Wall Street Journal said.
100% Upfront Payments To Artists
According to the filing:
- Headliners will get 25% of their fee before the lineup is announced, 50% a month before the event and the remaining 25% at least five business days before.
- Non-headlining artists will get 15% ahead of the lineup, 40% a month out from the festival date and 45% five days prior.
- Smaller shows and club events will see artists offered 20% of fees before the performance is announced, 40% a month before the event and 40% five days prior.
CEO Sillerman's Letter To SFX Staff
Ahead of his exit as CEO of SFX, Robert FX Sillerman has circulated a farewell letter to company staff at SFX Entertainment, the electronic music promoter that he helped to found.
Sillerman's ouster follows the company's February filings seeking Chapter 11 bankruptcy protection as the promoter seeks to restructure more than $300 million in debt accrued through big ticket acquisitions of other companies in the EDM space, including promoters ID&T, Made Events, and Disco Donnie, as well as other ancillary services such as electronic music download service Beatport.
In his farewell letter, circulated to company staff on March 29th, Sillerman is candid about his feelings regarding his exit and the current situation of the company. The letter, acquired by Billboard, is included below:
As most of you are aware Thursday, March 31, will be my last day as CEO of SFX. I will remain as Chairman of the Board. The disappointment I know we all feel should not be the lasting impression that remains. We had a bold vision, a revolutionary one. That we stumbled along the way can never detract from the energy and hope that brought us all together. As we enter this next phase, despite the place we find ourselves, there is much to be proud of. It remains incumbent on all of us to refocus our energies and find the path to success that is out there. I am confident that with renewed discipline combined with passion and creativity that our original goals can and will be met.
As Chairman I remain available to help in any way that I can. I maintain both an emotional and financial interest in our company's success and intend to participate as and when called upon. As such this is anything but a goodbye; rather a reset of roles with a renewed emphasis on collaborative success. While we aren't where we wanted to be, and will be, it has been an honor and a pleasure.
via Celebrity Access