Live events sector, recorded music
SFX’s founder Robert FX Sillerman, who stood down as CEO shortly after the firm applied for Chapter Eleven bankruptcy protection, has filed a claim for monies to cover legal costs and financial guarantees he made on behalf of the business. According to Amplify, Sillerman has requested just over half a million dollars o pay the law firm he has hired to represent him in litigation where both he and SFX are co-defendants. The Company has objected to the claim.
Sillerman is also seeking over $15 million in relation to guarantees he made as part of deals between SFX and both Spotify and Chicago-based promoter React Presents. Here lawyers for SFX argue that there is no evidence that Sillerman has, to date, made any payments to the beneficiaries of the guarantees, arguing that his claims against the company are contingent on such payments having been made.
As well as seeking to block the claims for legal fees and other cash, SFX are also opposing several requests made by Sillerman to indemnify himself from future lawsuits in relation to his former business.
It also seems that SFX Entertainment has fallen out with another high-profile brand partner – MasterCard. The two companies signed a “multi-year global partnership” in August 2014, with MasterCard becoming a technology partner and “financial services partner” of SFX’s festivals and the EDM promoter “leverag[ing] MasterCard’s innovative technologies for its digital and physical platforms, including ticketing, retail, live events and social networking”.
Now, however, the former partners are seemingly at loggerheads, with each party accusing the other of not holding up their end of the agreement.