SFX Entertainment has been extended a lifeline by Judge Mary Walrath who is handling the former EDM giant's bankruptcy proceedings. Walrath has granted SFX $15 million to pay artist advances for its summer festivals to a number of top-tier talent agencies with DJs at SFX 10,000 person or more festivals.
Many of these initial lineups leaked two weeks ago as part of the bankruptcy proceedings. Some of the artists included on those lists include the likes of Tiësto, Porter Robinson, Hardwell, Skrillex, Jamie xx, Above & Beyond, deadmau5, Wolfgang Gartner, Feed Me and Alison Wonderland.
The deal comes after months of negotiating between SFX's bankruptcy DIP Lenders and talent agencies, WME, Paradigm Talent Agency, Windish and AM Only, who all had some of their rosters in the leak.
In a motion the judge, SFX lawyer Dennis Meloro's wrote, "The value of the debtors' estates and their ongoing business depends on their continued successful festivals, events and club shows. The profitability of these shows hinges, in significant part, on the artists performing and their ability to attract large numbers of fans.
The pool of artists that can reliably attract large numbers of fans to the shows is extremely limited and the vast majority of them are represented by the agents. Thus, the debtor's relationship with the agents and their represented artists are vital to a successful reorganization."
SFX's reputation had diminished to such a level that artists have started to demand they are paid 100 percent of their fee well in advance of the gig.
The new deal allows SFX to pay out headliners 25 percent before the lineup is announced, followed by another 50 percent thirty days before the event and then the final 25 percent five days prior the event taking place. If the event is canceled SFX must pay them the full 100 percent. So if Electric Zoo happens to not make it to the third day again, the day three headliner would still be owed their full 100 percent fee.
Acts lower down the bill will be paid at the same intervals, but with more paid more closer to the event. They will get 15 percent before the lineup is announced, 40 percent 30 days prior and 45 percent five days before.
