Its no secret that SFX Entertainment is broke and filing for chapter 11 bankruptcy. We knew SFX Entertainment was considering bankruptcy, but now it is official.
SFX Entertainment is restructuring their assets under chapter 11 bankruptcy and has a new loan of $115 million to stay afloat long enough to get things under control again. If that’s even possible.
But even more importantly, how did this all begin?
Lets take a look. No article will explain it better than the one you are about to read below.
Editor’s Note: The following article was written by John Cameron, and was originally posted on We Got This Covered. A very interesting article with unprecedented insight into the decline of SFX Entertainment and the future of both SFX and Beatport. Read the first page below.
At this stage in the SFX saga, there can’t be an insider alive who disputes the blinding incompetence of Robert F.X. Sillerman.
If that sounds like an exaggeration, remember that the man in question is 67 years old, made his big introduction to dance music by declaring that he cared to know nothing about it – and then played dress up to look like a Bond villain in his Billboard shoot.
Eccentricities like these only account for a short snippet of his illustrious highlight reel of patently poor judgements. Unfortunately, where at first they took the form of laughable faux pas, they would magnify in scope until you could argue that – considering the impact on investor confidence that his running SFX into the ground surely had – if the EDM bubble does finally burst, Sillerman would be more at fault than any single other individual.
The incompetence at SFX’s highest tier of leadership is the very reason the company conducts business with such secrecy. Once you peel back the layers of bureaucracy far enough to observe Sillerman and his constituency closely, though, the unapologetic ignorance with which day-to-day decisions are made gives you a good idea of how a $9 billion company managed to fall $300 million in debt in less than four years.
As innumerable controversies continue to tarnish the company’s already soiled reputation on a near daily basis, its emphasis on confidentiality has become even more rigid. Especially in light of SFX’s bankruptcy filing, those employed by its numerous companies are required to keep especially tight lipped.
However, a handful of sources familiar with SFX’s dealings approached We Got This Covered to discuss the corporation – specifically, the details of its egregious mismanagement of online music marketplace Beatport. Among other things, their testimonies provide a rare window through which the unsavory business ethics of Sillerman and his contemporaries can be broken down, and the behavior patterns evident in the company’s misdeeds paint a startling picture. Read more…